fbpx

What Should You Do About Auto Insurance During the COVID-19 Pandemic

auto insurance covid-19

What Should You Do About Auto Insurance During the COVID-19 Pandemic

It feels like the world is shut down during this COVID-19 pandemic. Many of you are working from home in order to follow social distancing guidelines outlined by the CDC, as well as local and state stay home orders. Others have had their employment displaced by closures in a variety of industries including restaurants, retail, hospitality and more. You may be wondering how to cut costs while the outside world remains shut down and your auto insurance may jump to mind. Desperate times call for desperate actions, but while you may not be driving as much, Bancorp has tips for managing your auto insurance during this pandemic.

Don’t Let Your Auto Insurance Expire

It may be tempting to let your auto insurance expire or cancel, but that may end up costing you more in the long run. It’s possible if you let your insurance expire, you will get uncharged for not having insurance when this all passes. Due to the uncertainty and constantly evolving changes, it’s difficult to pinpoint when you will need to start driving again, but canceling your insurance isn’t the solution to save money at this time.

Tips for Changing Auto Insurance Policies During COVID-19

There are several things you can do to lower your auto insurance payments and save money while your household is driving less during the COVID-19 pandemic.

  1. If everyone is staying home, consider removing all but one car from your policy. You will need to maintain insurance on at least one vehicle and if you do need to drive you will have one insured vehicle.
  2. Drop comprehensive coverage on older vehicles.
  3. Increase deductibles. By increasing deductibles, you can lower your monthly payment.
  4. Try changing your vehicle from ‘commute’ to ‘pleasure’. This may help lower your auto insurance rates.
  5. Drop coverage limits. Coverage limits are the maximum amount a car insurance policy will pay after a covered accident. Dropping limits means you would pay more out of pocket if an accident occurred but may be an option to save money while self-isolating. Remember to increase them again when this is over.

Auto Insurance Billing Options

During these uncertain times, many auto insurance companies are working with customers to ease the financial strain many are currently experiencing. Some auto insurance companies are pushing payment due dates out for 30 or 60 days on a case-by-case basis. Some insurance companies are waiving late fees in some cases. Check with your insurance company to find out if they are offering any financial assistance during the COVID-19 shutdown.

We have received notices from Allstate and Safeco Insurance regarding their efforts to make customers, employees and agents a top priority. Allstate has announced the Allstate Shelter-in-Place Payback program, which will pay auto insurance customers 15% money back based on their monthly premium in April and May. It also includes payment relief for customers facing financial hardship – a special payment plan delays payments for 60 days with no penalty.

Safeco Insurance has announced its Personal Auto Customer Relief Refund, which will return approximately $250 million to its Liberty Mutual personal lines and Safeco auto customers. Additionally, late fee charges have been automatically stopped and cancellations due to non-payment have been temporarily paused for personal auto insurance through at least May 22, 2020.

Progressive also announced a relief program for its auto insurance customers due to the reduced number of claims and less frequent driving brought on by the pandemic. Customers with accounts in force as of April 30 will be credited 20% of their April premiums in May, as well as those for May in June. Credits will be automatically applied to Progressive customer policies. The company will also be extending payment leniency, waiving late fees and pausing collections.

Bancorp Insurance is Here For You

Many auto insurance companies want to work with you through these difficult times. Contact Bancorp Insurance we will review all of your options. The goal is to save money on your auto insurance by making alterations without canceling coverage. We’re here for you.

No Comments

Post A Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

We'll Be There When The "What If" Happens To You, Your Family, or Your Business.