With parts of the world still in lockdown due to the Covid-19 pandemic, the use of vehicles has reduced, but what does this mean for car insurance? Do you still have to pay the full amount for a vehicle that you don’t use? If the car is at home doesn’t that mean that the risk of an accident is low?
Is there relief for policyholders?
Yes! You will be glad to know that most American car insurance carriers have understood the current situation and have decided to make refunds or provide discounts to policyholders. This is a great initiative as many people and business owners are financially affected by the pandemic.
Some of the major U.S.A insurance carriers to offer refunds and discounts for customers:
- Allstate, one of the country’s major auto insurers offered a 15% refund on customer’s premiums from April to June alongside Liberty Mutual which gave the refund for 2 months of the customer’s annual premium. Travelers offered auto policy customers 15% premium credit from April till June.
- American Family Insurance issued an onetime $50 repayment for each vehicle on an automotive policy in April. So did Nationwide effective since March 31st for two months. American Family Insurance is now offering a 10% monthly credit on these auto policy payments until the end of the year.
- Farmers Insurance reduced premiums by 25% for April but reduced premiums by 15% for May.
- The Hartford offered its clients a 15% refund on personal auto premiums between April and June.
- Geico is giving 15% credit for up to 6 months of premiums for their customers, effective from April 8th till October 7th. Progressive Insurance gave 20% credit to personal auto insurance holders from April to May. State farm paid an average 25% credit from March 20th to May 31st; they also reduced auto rates by 11% due to changes in driver behavior. USAA offered customers 20% credit on three months of premiums.
Is it possible to obtain a refund or discount for your car insurance now?
As indicated above, most of these insurance carriers have ended their refunds and discounts by June, however, this does not mean all hope is lost. These companies have come to the understanding that many people have been furloughed or have had to shut down their businesses, and are therefore financially affected and may not be able to make monthly payments.
Due to this some insurance carriers still offer help on a case-by-case basis depending on the customer’s financial situation. Some companies have even put a temporary hold on policy cancellations due to nonpayment and have removed the late payment fee.
Contact your car insurance provider
If you are not sure if you are eligible for a refund or discount on your policy, it is best to check with your insurance company. Check their website for an official announcement regarding this. If they have not officially stated anything you can ask your insurance company to re-rate your policy, you can also lower your coverage limits, for the time being, another option is to increase your deductible if the car is not used at all. If your insurance carrier is not offering any refunds or discounts, opt to shop for another insurer that offers better rates or discounts.
Many insurance companies are considerate of their policyholders’ financial situations during this COVID-19 pandemic. If you are facing financial troubles do not hesitate to contact your insurance carrier for more information and to discuss what your options are. If you let your insurance policy lapse instead it will result in you having to pay more as insurance companies charge a separate fee for delayed/lapsed payments.
Us, at Navotar, would like to wish all our readers safety and good health during this time.