Not Every State Saw Decreased Car Insurance Rates During the Pandemic
Lisa Steuer McArdle
· 3 min read
After all, when COVID-19 infection rates were high in 2020, many businesses closed and more employees began working from home. With fewer people on the road, there were also fewer car accidents and claims—allowing car insurance rates to decrease.
But even so, not every state saw decreases in car insurance rates in 2020. In fact, car insurance rates in
Nebraska
actually rose about 5%during the pandemic. It was even worse in the city of Omaha.
Car insurance rates over recent years
According to
The Wall Street Journal
, 2020 marked the first national decline in car insurance rates since 2013. After 2013, rates increased because lower gas prices during an economic recovery in the U.S. reportedly led to more drivers on the road. Some insurers even say that during these years, there was an increase of crashes caused by distracted driving, as well as an increase in adverse weather conditions.
Finally, car insurance rates decreased by nearly 4% on average nationally in 2020 because traffic volume decreased by about 50% during the course of the pandemic.
In addition, many policyholders even received 15 to 20% a month premium refunds from insurance companies in the spring of 2020.
Last year, some companies took other steps to help customers during that unprecedented time, such as suspending cancellations for non-payment for a period of time and allowing payment arrangements for past due balances.
There were even special programs for low-mileage drivers and temporary price reductions put in place.
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Nebraska’s car insurance rates
When calculating car insurance rates, insurance companies look at a few factors, including how many miles you drive annually, accident history, age and your zip code.
So even with all these methods put in place by companies to help consumers in 2020, interestingly, car insurance rates still increased in Nebraska. Also in Omaha, residents are paying even more, simply because of where they live, according to
KMTV 3 News Now
. In fact, some residents in the downtown area of Omaha are paying $600 more per year for the same car insurance as those who live in more rural or suburban areas, according to the report.
Car insurance rates increase when there are more accidents or claims made in a certain area. Now that insurance rates are rising again with more people out on the road, Omaha residents may see their car insurance rates increase further.
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