Call your car insurance company and let them know you won’t be driving as much this year. It’s possible that your monthly payment could be immediately lowered.

Since the start of the COVID-19 pandemic, people have been reducing their annual mileage, which is a consideration in determining the cost of car insurance. This means that some people may be paying too much for their car insurance.

For example, if your yearly mileage was 12,000 last year but will only be 8,000 this year, that is a big reduction. You may be able to negotiate a lower rate if you let your insurer know you’re driving down on your mileage.

Getting help in this way would be in addition to the general price reductions that companies made at the outset of the pandemic. Consumer companies argue that insurers aren’t doing enough to help their clients, and point out that the money they’re saving from those reductions isn’t enough to justify keeping rates the same.

Driving in the United States dropped by 17%, or 264.2 billion less miles were driven in the first half of 2020 compared to the same period in 2019, according to data from the National Highway Traffic Safety Administration. Less traffic implies fewer potential collisions, and insurance companies profit when they save money by not paying to pay out claims.

According to a statement released recently by the American Property Casualty Insurance Association (APCIA), a trade association representing insurance companies, auto insurers returned approximately $14 billion in refunds and credits to consumers in 2020 due to individuals driving less.

But a consumer advocacy group in the United States, the U.S. Public Interest Research Group, conducted a state-by-state review and found that insurance companies have profited financially from fewer claims but have scarcely paid clients since the beginning of the pandemic.

Although assistance from COVID-19 varied by state and insurer, the survey indicated that the vast majority of insurers returned less than half of the typical monthly payment (The survey stated that State Farm, GEICO, and USAA provided “better” assistance than other insurance companies in numerous states).

There is no such thing as a “spare” dollar when one is having financial difficulties. When added up, the total amount of money that insurance companies were willing to pay out was, to put it mildly, disappointing.

Insurance companies are not likely to provide more group aid, according to several experts we consulted; but, you may be able to negotiate a discount to remain a customer.

In 2021, insurers and policyholders will continue to collaborate on policy policies. In the event that a policyholder’s premium has not automatically been adjusted due to a reduction in driving, they are recommended to contact their insurer to discuss options.

Thus, now is the time to take the initiative and request a lower car insurance premium if you are driving less, or at least a discount or two that is not mileage-based.

I thought, “If I’m only driving 5,000 miles a year, there’s no need in paying for 15,000 miles of coverage.” There’s a lot of wiggle area, in my opinion. Of course, the insurance company has the final say in this matter, but right now, they probably wouldn’t want to lose your business anyhow.

Don’t worry if you can’t think of anything to say since we’ve got you covered.

How to Ask for a Lower Auto Insurance Premium

Start by explaining your goals to your insurance company.

Don’t pick up the phone if you can handle your auto insurance policy administration online instead. However, if you have to call your insurance agent and negotiate, there are four things to bear in mind:

• Be cordial, but firm. Never try to negotiate a lower auto insurance company over the phone. If the response is unfavorable at first, you still need to approach the issue with logic and respect.
• Get ready to explain your request for a lower premium, whether it’s because you’ve cut back on driving or because you’re experiencing financial hardship.
• Several professionals we consulted agreed that any discounts you obtain are likely to be prospective. That means it’s unlikely you’ll get your auto insurance premium money back if you’ve already paid it.
• Find out if other insurance rates provide lower insurers, and if so, mention that fact in your sales pitch.

Ask specific inquiries as you go along to learn about hidden cost-cutting opportunities. In all honesty, you are welcome to take advantage of more than one discount. Here are 10 inquiries you may make to your auto insurer company to see if you might lower your premium:

• Is there anything you can do to help folks who have fallen on hard times due to the COVID-19 pandemic, such as extending grace periods, waiving late fees and penalties, or establishing payment plans?
• How about low-mileage discounts, if any? When that’s the case, what steps do I need to do to qualify? (Mileage regulations vary by state and insurance company, but many insurers give low-mileage discounts to customers who put on less than 5,000 to 10,000 miles annually.)
• Approximately how much money can I expect to save if I have both my auto and house insurance policies with you?
• What about loyalty or renewal discounts?
• Is it possible to save money by paying the full year’s fee all at once?
• How about discounts for having safety equipment like airbags and anti-lock brakes?
• To what extent do I qualify for discounts for being a safe driver?
• What kind of corporate discounts do you provide? (Explain where you have found gainful company).
• What perks, if any, am I paying for, such as roadside assistance or accident forgiveness?
• I’m hoping to reduce my tax liability; could you advise me on how to do so? (If you request a greater deductible, your monthly premiums will be much lower. However, increasing your deductible is a good idea only if you can afford to do so in the event of an insurance claim.