Saving Money

61 Million Americans Lowered Their Car Insurance Because of COVID-19. How You Could Cut Yours by $500

There’s no question the pandemic was terrible — for a lot of reasons. But a silver lining managed to peek its way through the darkness for nearly 20% of the population:

Car insurance rates dropped significantly, saving 61 million people hundreds, if not thousands, of dollars each since last year.

So, why did rates drop so much?

First, fewer people were on the roads, so there was a lower chance of an accident or claim. Then, new car sales were down an estimated 40%, meaning the claims that did come through may not have been as expensive. And finally, insurance companies knew they needed to be more competitive, since it’s so easy for people to find a new, better policy.

All of those factors caused rates to drop in 2020 (and stay low). One Penny Hoarder took advantage of this situation over the summer and managed to cut her bill by more than half.

Wondering how you can cut your bill, too? It’s not too late. You just need to compare quotes.

A website called Smart Financial makes it super easy to compare car insurance prices. All you have to do is enter your ZIP code and your age, and it’ll show you your options.

Using Smart Financial, people save an average of $715 a year.

Yup. That could be more than $700 back in your pocket just for taking a few minutes to look at your options.

Kari Faber is a staff writer at The Penny Hoarder. She’s the one who saved 50% on her car insurance bill in the midst of COVID-19.