Plan B Forum

One of the financial winners in the current situation has to be auto insurers. Overall miles driven have to be half or less in many metropolitan areas, meaning half as many accidents. Plus, fewer cars on the road should mean fewer accidents per mile driven, so even more savings. We have two cars, one has not been out of the driveway in over three weeks, and the other gets the now normal "30 days to the gallon". Not expecting a rebate from my auto insurer, though. Considering cancelling and moth-balling for the time being the car with no lien -- could buy close to a case of good wine with the savings!

Local news last night reported that one of the carriers was going to issue a rebate to its policy holders based on the lower amount of driving.

Ironically, I'm sitting here listening to my FD radio to vehicle accident with rescue two boroughs over.

CSAA You would be refunded the savings automatically.

(AAA of nor cal)

Yrs rubato

Apparently Allstate is giving this to customers automatically, too. Got this email from them yesterday:

As we all work together to slow the spread of COVID-19, more of us are at home and driving less, which means having fewer accidents. That's why we are announcing a Shelter-in-Place Payback for our auto customers. And, since our lives have become more digital, we are providing free identity protection for the rest of the year.

Most auto customers will get an average payback of about 15% based on their monthly insurance costs during April and May. You can get your payback faster through the Allstate® mobile app.

Anyone else getting about 3 weeks per gallon?

Long Run wrote: ↑

Tue Apr 07, 2020 5:16 pm

Considering cancelling and moth-balling for the time being the car with no lien -- could buy close to a case of good wine with the savings!

You rode through the Covid in a car with no lien? That's America!

It felt good to be out of the rain!

Long Run wrote: ↑

Tue Apr 07, 2020 5:16 pm

Considering cancelling and moth-balling for the time being the car with no lien

Will your insurer even let you do that? Here in NJ, every car you own must be insured whether or not you're using it -- the only exception being if it is rendered completely inoperable.

To the extent auto insurance is a highly regulated and the carriers may need state approval for their rates, the companies offering rebates now are positioning and protecting themselves more than they are being magnanimous to policyholders. (In the case of mutual insurance companies, the "excess" revenue is rebated to policyholders as a matter of course.)

In Ohio with Nationwide (a mutual co.), it was possible to remove liability and collision from cars that were not being driven. Keeping Comp coverage only in case of fire, theft, etc. We had 3 vehicles - a beater truck, the minivan and my Nissan 300ZX which went into my barn every winter - Comp coverage only.

The law in Ohio only required liability coverage on vehicles in use and you could have liability-only policies. The authorities don't care in an at-fault state if you bend your own vehicle - it's damaging other people and their property that's to be covered.

Problem with two cars if you put one on Comp only is that you lose a multi-car discount. Reduces the savings quite a bit sometimes.

Sue U wrote: ↑

Thu Apr 09, 2020 7:45 pm

To the extent auto insurance is a highly regulated and the carriers may need state approval for their rates, the companies offering rebates now are positioning and protecting themselves more than they are being magnanimous to policyholders.

Exactamundo. I just got notice that I will get two months "refund" at 15% per month, even though our driving has dropped 95%. Window dressing.

Long Run wrote: ↑

Tue Apr 07, 2020 5:16 pm

One of the financial winners in the current situation has to be auto insurers. Overall miles driven have to be half or less in many metropolitan areas, meaning half as many accidents. Plus, fewer cars on the road should mean fewer accidents per mile driven, so even more savings. We have two cars, one has not been out of the driveway in over three weeks, and the other gets the now normal "30 days to the gallon". Not expecting a rebate from my auto insurer, though. Considering cancelling and moth-balling for the time being the car with no lien -- could buy close to a case of good wine with the savings!

I've not bothered taxing or insuring Margo, our campervan, while this is ongoing. I cannot go anywhere in her, it is verboten, but I can use my car to go to the nearest supermarket, (12 miles away.)