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Every car owner is required to carry auto insurance in order to register a vehicle, but it can be difficult to deal with an expensive insurance policy while managing a global pandemic, work stoppages, and an assortment of anxieties caused by the coronavirus. In response, some companies have offered discounts or refunds for policy owners.
The most common response among insurance companies during the COVID-19 pandemic is a partial refund of insurance premiums. Companies are offering something in the range of a 15 percent discount to all their customers until they believe the pandemic has been weathered. Some companies are offering discounts until policies renew, and others may extend discounts even longer.
There is no need to change your car insurance policy if you believe you can afford it. Your carrier has likely given you some sort of discount, and that means that you are saving a bit of money. This is good news for people who have been able to work from home or have a reduced workload. Anyone who still has a job and continues to drive to work is not affected, but you may need to make changes if your insurance policy has become all too expensive for you.
You can reduce the costs involved with your insurance policy if you reach out to the carrier. You should talk to your insurance agent or the carrier if you would like to make changes. In some cases, companies can move you to a different level of coverage. If this is the case, you do not need to make specific changes to your policy. You can use a different package to protect yourself and your vehicles.
You should make changes to your policy based on how it is constructed. Everyone has a different policy, and you may have riders, additional coverage, a deductible, and other facets of your plan that can be altered. Consider making these changes to your auto policy to save money:
You should ask your agent or the insurance carrier if there is anything else that they can change to help you save money. Working with an insurance professional will help you make wise choices as you attempt to alter your auto insurance.
Suspending your auto insurance coverage is a complex subject. You can suspend your coverage, but you may be required to carry coverage at all times because your vehicle is registered in your state, county, and city. You do not want to receive a letter from the state showing that you have been fined for not maintaining coverage on the vehicle.
Suspending your coverage is an extreme measure that you should only use when it is allowed by your state or municipality. This option is also useful for people who keep a car at a vacation home. You may only live in that location a few months out of the year, and suspending your coverage in the interim will help you save money. Some adult children who keep cars for their elderly parents may also suspend their coverage because the car is not in use.
Canceling your coverage is only a good idea if you are not driving at all. As mentioned, you may have issues with the registration on your vehicle. You should reach out to the state about your registration or ask the insurance company if they can reduce your rates even more.
Insurance premiums have not risen yet, but the COVID-19 pandemic is not over. Insurance companies are still in the middle of a giveback period that includes offering discounts and refunds to customers. This period will end, and premiums will likely return to normal. Insurance companies will increase revenue simply by changing your premium back to its original amount. They have, however, lost quite a lot of money by offering these discounts.
At the same time, insurance companies are losing investment income because interest rates are at all-time lows. When insurance companies cannot make as much money as they once did with alternative investments, they will begin charging more for auto insurance and other plans to make up the difference. There has not been an announcement, but you might want to reduce your insurance costs preemptively.
Additionally, it is advisable to contact an experienced lawyer if a car accident does occur during this time. A lawyer will help you with filing a claim and will assist you with your insurance company.
Our accomplished Milford car accident lawyers at Rhoades & Morrow are prepared to assist you if your insurance company or policy has changed course, causing you great harm or financial hardship. In addition, we can assist you if you have had a car accident during this difficult time. Call us at 302-422-6705 or contact us online for a free consultation. Located in Wilmington, Bear, and Milford, Delaware, we assist clients throughout Middletown, Dover, Milford, Hillsborough, Lewes, Rehoboth, Elsmere, and Seaford.