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by Michael Harbron on Sep 16, 2020

While driving hasn’t yet returned to the levels it was at in Arizona before the pandemic hit, daily miles driven are still lower – but are on the rise. Some estimates show 60% fewer miles were driven in April across the area, but across the country, most states have only seen a 10%-20% reduction in miles driven. As schools across the country have reopened, driving again is ticking upward. State Farm is planning a rate cut of 7.6% in Arizona.

That being said, many companies that provide auto insurance in Phoenix are still in the midst of lowering rates – but not every company is. Some companies have actually been filing plans to increase auto insurance rates since March. These include Allstate, Nationwide, and Liberty Mutual, among others. Still other companies for auto insurance in Scottsdale and Phoenix are taking a wait-and-see approach as the pandemic continues.

Is It Enough, Though?

While rate reductions and refunds sound good at first, not everyone feels that refunds are enough. Many consumers have seen meager adjustments of only a few dollars. There are consumer groups that believe people are overpaying for auto insurance coverage, and that providers will still turn enormous profits, thanks to fewer claims being filed during the pandemic.

Insurance companies that are taking steps to reduce coverage rates will await approval by each state, after which drivers will benefit when they either purchase a new policy or renew their current ones. These companies have stated that the reason for the refunds was to better reflect milage reduction during the pandemic. Driving fewer miles means fewer claims payouts. The previous rates that reflected outdated levels of claims suddenly became out of line with the new reality of driving during a pandemic.

Tracking Data: The Benefits

Although it’s hard to predict how driving behavior will change during the rest of the year, those companies that keep track of data are going to be the ones to be better able to react quickly to trends in driving as the pandemic continues. Tracking driving actions like braking and speeding, and tracking mileage could play a vital role. The data can be used to reward safe drivers and calculate premiums. Insurers can gain more insight into driving, helping them make informed decisions about pricing and coverage options. Find out what your car insurance in Phoenix would be for several major providers and save money by discovering options with Summit Insurance! We offer affordable and reliable insurance choices and online auto insurance quotes that put you under no obligation – for free. Contact us today to shop your Phoenix auto insurance so you don’t have to.


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