Looking to pinch some pennies when it comes to your monthly bills? A car insurance refund could do the trick. In fact, millions of Americans have already received refunds and discounts on their insurance policies due to the pandemic. If you’re driving less or have completely eliminated the morning commute, you could qualify for an auto insurance refund to reward you for saving the mileage.
You might also qualify for a refund if you need to cancel your policy early. Most policies are valid for six months to one year. If you cancel your policy, your insurance company could owe you for the unused portion of the policy.
Are you driving less each month? Has the pandemic forced you to work from home? These are just a couple of things that could qualify you for an auto insurance refund to cut the cost of your monthly insurance. Lots of companies are rewarding policy holders for driving less and helping them save a few bucks. The following 4 situations could result in you getting a refund.
- You don’t drive as much.
Some companies will lower your cost of car insurance during pandemic times if you are driving a lot less. The amount of the refund, if any, will vary by company. However, you can also consider changing your coverage to reflect your new driving habits.
- You moved to a lower-risk area.
Car insurance policies tend to be more expensive in busier areas. This is because there’s an increased risk of you getting into an auto accident when there are more drivers on the road. If you move to a less populated area, or an area that has far less accidents, you could qualify for a refund.
- You removed a high-risk driver from the policy.
Let’s face it, teens aren’t the most trustworthy drivers. You could qualify for an auto insurance refund if you had a teen driver on your policy but recently removed their coverage. This goes for other high-risk drivers too, like those with numerous accidents on their driving record.
- You canceled coverage on one of your vehicles.
Since the cost of your policy depends on the vehicles you cover, you may qualify to get a refund when you cancel coverage. This is most common when you pay for a policy upfront, then sell your car or it’s no longer operable. It’s commonly known as a gap insurance refund because it proves the car is no longer in your possession.