Car Insurance Costs Dropped Due to the Pandemic. What Do Experts Predict for 2021?
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For drivers, a teeny-tiny silver lining of the pandemic last year was cheaper car insurance. Experts say savings are likely to continue in 2021, but how much drivers may get back remains in question.
Americans are back on the roads today in greater numbers than they were last spring, when stay-at-home orders and widespread business shutdowns first caused a dearth of vehicles on the road. Not only are we driving less, says Matt Carrier, a principal at consulting firm Deloitte, but we’re driving differently. Since many people are still working and learning from home, we’re spreading out our trips over the course of the day. Morning rush hour commuters, for instance, have a lot less company on the road these days -- and less chance of crashing into one another.
All of which might seem to make continued insurance savings a slum dunk in the new year -- a development that consumer advocates say is just and necessary. Predictions from industry spokespeople lean in that direction, but the details are still emerging.
The murkiness over price savings in 2021 might have reached drivers themselves, and help to explain why a majority of respondents to a new Money poll expected little change in their car insurance costs this year. And why as many other respondents predicted an increase in their costs compared to 2020 as expected a price break.
Here’s what lies ahead for your car insurance bills in 2021, according to insiders, including whether to shop around for a policy, perhaps by using sites such as Money's new auto-insurance comparison tool.
