As cities implemented lockdowns, employers moved to remote work and consumers opted for delivery services amidst the COVID-19 pandemic in 2020, drivers in the U.S. started using their cars less — a lot less. That raised the question: If people are driving less, shouldn’t they be saving money on their car insurance?
New research from The Zebra looked into how mileage affects car insurance and found that:
- Most COVID-related insurance refund and rebate programs have already ended.
- Even though Americans drove 14% less in 2020 than in 2019, drivers only saved up to 6.2% on their car insurance.
- Other rating factors have always had a greater impact on car insurance rates and savings than annual mileage.
- Usage-based insurance can save some drivers up to 9% — and more insurance companies are offering it.
Most COVID-related insurance refund and rebate programs have already ended
In April 2020, many insurance companies created refund and rebate programs for their customers. It was an acknowledgment that lockdowns and social distancing had decreased how much people in the U.S. were driving. To be precise, the Federal Highway Administration saw a 19.3% decrease in vehicle miles traveled between February and March 2020, and a further 27.2% decrease in vehicle miles traveled between March and April 2020.