The coronavirus has taken a financial toll on many people. When it comes to automobiles, COVID-19 will change the way people buy, finance, and insure their cars. With so many self-quarantining and not out driving, it’s easy to wonder what changes you can make to your car insurance and what changes insurers are making in order to help you during these times.
Should You Cancel Your Car Insurance?
While it may seem financially smart to cancel your coverage now because you aren’t driving nearly as much, that is the opposite of what you should do. Unless you plan on selling your car, cancelling your car insurance for a limited period of time can actually have negative effects for you:
- You won’t be covered for a loss
- Most states legally require car insurance before you can drive
- A gap in coverage can mean higher premiums when you restart your coverage
- There may be cancellation fees or unexpected costs
Ways to Decrease your Monthly Payments
There are a few ways you can go about lowering your monthly costs in order to save some money without cancelling your coverage completely:
- Increase your deductible
- Reduce your liability coverage limits
- Switch to a usage-based plan
How Auto Insurers are Supporting Customers
Due to a decrease in traffic since the beginning of coronavirus, some of the largest car insurance companies have announced a premium rebate for their customers. This is a result of less people on the road driving, so less people are at risk for auto claims. State regulators are also applying pressure to auto insurers to support their customers during these financially uncertain times. They are pushing for extended grace periods, offering payment relief, halting insurance cancellations, and providing online claims processing.
Auto insurers want to help their customers, so it is suggested that if you are having trouble paying for your monthly insurance bill, contact your insurance provider and find out how they can help. While everyone is trying to figure out the uncertain times of coronavirus, your insurance companies are still focusing on the one thing that matters most, protecting you.