Car Insurance Prices Fell in 2020 as Pandemic Reduced Driving – WSJ

Car Insurance Prices Fell in 2020 as Pandemic Reduced Driving - WSJ

Car-insurance rates for American vehicle owners fell by nearly 4% on average nationally in 2020 as carriers adjusted prices for reduced traffic volume and other pandemic-related changes in driving patterns, according to Zebra, an insurance price-comparison website.

The decline is the first nationally since 2013, Zebra said. In addition to these rate reductions, which take effect for new customers and as existing policies renew, many policyholders received premium refunds of about 15% to 20% a month from insurers in the spring. Back then, stay-at-home directives led to a plunge in nationwide mileage and, in turn, a sharp drop in wrecks.

The rate reductions bring the average annual car-insurance bill to $1,483, down 3.9%, Zebra said. Car insurance represents the biggest single line of business for U.S. property-casualty carriers, with $248 billion of annual premium in 2019 paid by consumers, according to trade group Insurance Information Institute.

It is unclear if U.S. consumers will applaud the industry cuts.

In releasing its annual report on rate trend Wednesday, Zebra noted that many consumers have wondered why their premium bills haven’t dropped more dramatically. Many continue to work from home with their vehicles parked all day.

This content was originally published here.

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