Major car insurance companies have pledged to offer refunds to their customers. As the car accidents are decreasing due to the fewer cars on the roads, insurance providers are offering refunds. Providers like Allstate, Geico, Progressive, American Family, Nationwide, and others have different plans to help their customers get back a part of their premiums paid in April and May. Also, The Consumer Federation of America (CFA) has urged all insurers to provide paybacks to their drivers. In cities like New York and Los Angeles, traffic has decreased 92 percent and 73 percent, respectively and there are fewer car accidents.
Changing the current car insurance coverage can lower the premiums. Drivers can adjust their coverage to save money on their monthly premiums. Drivers who use their cars less often should contact their insurers and check if they can get a lower bill if they drive fewer miles. Also, drivers can change their coverage limits to save more money.
Making a payment during this crisis is not that hard. Most large insurance providers have mobile apps that can help drivers make a payment or even file a claim. Some providers are relying more heavily on virtual inspection tools and video chats to assess damages.
Most insurers have paused cancellation of policies due to non-payment. This is a good thing for drivers who are financially struggling in this period. However, this measure is temporary and insurers say that their pausing of late fees and cut-offs will end when the coronavirus crisis ends as well.
Canceling car insurance to save money is not recommended. Most states require minimum liability auto insurance. Drivers who need to leave their homes for reasons such as picking up food or going to a medical appointment will need insurance to avoid paying money from their own pockets if they get involved in a car accident.
Consider keeping comprehensive coverage. Weather events like hail storms or heavy winds that can cause a tree branch to fall onto a vehicle and damage it are covered by comprehensive insurance. Also, thieves don’t care about the coronavirus and can easily steal an unattended vehicle.
Check the pay-per-mile auto insurance plans. Drivers who foresee that they will not use their vehicles too often for a long period of time should explore this option. Pay-per-mile auto insurance is mostly purchased for back-up vehicles that aren’t used on a daily basis or by people who work really close to home and rarely travel.
Drivers who use their vehicles for ridesharing or to deliver supplies may need special insurance. Drivers who are making food deliveries may need business car insurance for food delivery. This is because the vehicle is used more frequently while working. In this situation, drivers need to purchase separate commercial insurance that takes over when they start the delivery and drops when they complete it. However, some companies are now taking special considerations with COVID-19 and are covering the vehicle for an accident that may occur while working. Some are covering customers who use their personal vehicles to deliver medicine, food, and other goods professionally, and others are providing coverage for most restaurants and retailers who are now doing business by delivery.
April 28, 2020 How To Reduce Car Insurance Premiums During the Pandemic