What to Do if You Can’t Pay for Insurance Due to Coronavirus

Below are some pieces of information on what to do should you be caught in the COVID-19 hardship and as a result can’t your insurance premium’s bills:

Auto insurance:

In most states, drivers are required to have car insurance which means until you stop driving, losing coverage is not a legal option.

It is very possible to capitalize on the COVID-19 auto insurance refunds or even make some changes to your policy with the firm you deal with.

During the pandemic, most of the country’s biggest insurance companies are awarding their clients with partial premium refunds for the COVID-19 pandemic.

Allstate, for example, is giving an average of 15% back to its car insurance customers for premiums they paid during the months of April, May, and June.

Also, State farm is working on giving an average cut of 11% in policies in all states that they are located within.

Lastly, you can reduce coverage but it should be your last option. Most states have minimum liability insurance requirements they work with but you can smartly let go of the optional coverages to cut down costs.

If you have a car loan or lease, the contract that you have is likely to require comprehensive and collision insurance.

On the other hand, if the pandemic made you not drive your car at all and also you don’t have a loan or lease; here are some other options which include:

  • Suspending coverage.
  • Canceling car insurance.

Downgrading coverage to comprehensive only insurance, protect your vehicle from damage while it’s stored.

You would have to file for an “affidavit of non-use” with your state’s department of motor vehicles if you decide to go by any of the points listed above.

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Written by Gustavo Franko

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