Many insurers are likely to begin requesting rate increases, particularly in states such as Florida.
Millions of drivers across the United States have been benefiting from car insurance savings in different forms since the start of the pandemic crisis. Some insurers issued refunds, while others provided rebates and yet others lowered their rates.
That said, it appears that rates may be returning to normal and some may even be increasing.
A recent ABC Action News report pointed to at least one major insurer that would be seeking to raise auto policy rates. That example was in Florida, though it does appear that the car insurance savings from earlier months may be fizzling out.
Geico, Allstate, State Farm and other large auto insurers have been providing drivers with cheaper coverage for several months due to the reduction in cars on the road. With millions of people working from home, furloughed or laid off, the risk of crashes has decreased. Therefore, insurers have been able to discount, refund or otherwise provide cheaper coverage.
However, since then, rates and premiums have returned to normal, and some have even started to rise. The report underscored a state approved increase by Geico in Florida.
Drivers are complaining of the elimination of car insurance savings when their risk hasn’t risen.
Many drivers who continue to work from home and who have not returned to their own driving habits are finding that their rates are being increased. A letter from Geico explained the premiums hike in a letter saying that: “There are many factors that affect your insurance premium such as age, driving history, location and the increasing cost of vehicle repairs.”
However, many of the recipients of this letter say that none of those factors have changed since the start of the pandemic. They continue to work from home, they are only 6 months older than they were when the car insurance savings was implemented, as are their vehicles, and their location and driving history hasn’t altered.
According to the report, Geico’s increase could be explained by a rate increase the insurance company implemented after requesting permission from the Florida Office of 
Insurance between March and August. This approved request was for a 7 percent increase following the start of the pandemic in the United States.
