Auto insurance is a necessary resource for any driver looking to hit the road, but choosing your coverage and finding the best premiums can be confusing. When you realize just how often requirements and prices can change, it becomes even more so.
Here are a few changes in auto insurance you can expect in 2020.
Your Rate May Go Up
Auto insurance rates are far from set in stone; a number of different factors can lead to rate increases.
In some cases, you may cause your premiums to increase. If you’ve been in an auto accident, your rate could go up. Move to a new city? The rate you were paying previously may increase. If your credit score has gone down since the last time you searched for new auto insurance coverage, you may wind up with higher premiums as well.
Of course, certain life changes can save you money as well. Reaching certain age milestones, notably turning 25, will usually lead to a premium drop, because insurance companies consider you to be lower risk. The same goes for when you get married.
Sometimes changes in the cost of auto insurance are out of drivers’ control. That’s what’s happening to drivers in 15 states this year. Arizona, Nevada and Georgia are just a few states where rates are going up in 2020. In fact, two percent of all drivers in the U.S. have already seen an increase this year.
Of course, choosing the right auto insurance provider can help you save money, even among a nationwide increase. With an auto insurance policy from USAA, for instance, you’ll get accident forgiveness as well as a variety of discounts, including one for being a safe or defensive driver, if you’re in the military and more.
Refunds Will Come to an End
With fewer drivers taking to the road thanks to widespread lockdowns, many insurance companies offered refunds on premiums as a result of COVID-19. In most cases, these refunds or discounts rolled out in March and April of 2020.
But with the world starting to get back to normal and more individuals going to work, on vacation or even just driving around town, you can expect those refunds to come to an end.
Minimum Liability Coverage Requirements are Changing
States have the ability to set minimum auto insurance requirements for residents. This includes requirements on personal injury protection, liability coverage and more.
Sometimes, states decide to make changes to these requirements. That’s something that residents of one state are facing this year.
Michigan is making a change to the personal injury protection requirements. Starting in July, residents have the option to choose how much protection they want to have. This change is expected to lower the cost of auto insurance premiums, though this may not be the case for every driver.
Preparing for Auto Insurance Changes in 2020
Keeping up to date on the latest changes to auto insurance is a great way to keep your premiums in check and be aware of any increases you might face or discounts that could be available. You may have enjoyed a refund during COVID-19, but you can expect that to change. If you live in Michigan, you’ll now need to decide how much personal injury protection you need. And if you live in one of the 15 affected states, your premiums could be set to go up this year.