COVID’s Affect on Your Car Insurance

The world right now is very different from the world we’re used to with COVID, social distancing, quarantining and more. While you’re staying inside to try and stay safe, there may be unexpected changes to your car insurance policy.

Shopping for Insurance in a Pandemic
Car getting air in tire

First and foremost, less people have been looking for insurance since the start of the COVID pandemic. With stay at home orders mandating that everyone stay inside, those without car insurance have found little to no reason to buy car insurance for a vehicle they won’t be driving. Even people who own car insurance have scaled back on insurance or refrained from adjusting their car insurance policy.

If you are looking for car insurance, you may find it more difficult than you normally would. While it’s true that for years it has been easy to get car insurance online, there are many insurers who are struggling with the sudden drop of income. This means that insurers in your area could be going out of business, making it harder for you to insure your vehicle. This doesn’t mean it’s impossible, however. There are still plenty of insurance providers who are operating the best they can and insuring thousands of vehicles.

Insurance Premiums: Up or Down?

There is a chance you may save money on car insurance during this pandemic due to a lack of people on the road and offered discounts. As insurers want to keep customers, some have been offering discounts, payment plans and rebates to help cut down on the cost.

There are other factors that can cause your rates to go up during this time, however. While there are less people on the road, there has already been a rise in drivers who feel comfortable enough speeding and committing traffic violations. Not only that, but as people get back on the road after shelter and place orders are lifted, there are more drivers getting used to being behind the wheel again.

Overall, insurance providers want to refrain from lowering car insurance premiums significantly during this time but may offer certain discounts or other solutions.

Should I Cancel My Car Insurance Policy During COVID?

It is crucial for you to keep a certain amount of car insurance on your vehicle. Car insurance is required to some capacity in every state. Being caught driving without the proper insurance can be expensive with fines and other fees. Dealing with the DMV is the last thing anyone wants to do in a pandemic, so make sure you have at least the minimum amount of car insurance required by your state.

This doesn’t mean you have to keep full coverage on your vehicle, however. If your vehicle is being stored in a garage, you may want to maintain comprehensive coverage in case of damage due to fire, theft, vandalism, etc. But you may not need as high limits of collision or uninsured motorist as you did before. You can lower your premiums by raising your deductible for these coverages. Just keep in mind that a higher deductible means that you will pay more out of pocket if you have to file a claim.

If your state is opening up and you are returning to work, you may want to keep full coverage on your car and instead ask about other discounts. You may still raise your deductible for lower premiums, but also ask your insurance provider if they are doing anything to lessen the cost during these hard times.

Will My Car Insurance Be More Expensive if I Shop Around?

On the contrary, you can save money by shopping around between insurance providers. In fact, some insurance providers charge drivers more if that driver clearly hasn’t shopped around or done their research. Comparing quotes can help you find the best deal, as well as show which provider is offering the best returns or discounts for COVID. Be sure to look for hidden fees or drawbacks on your policy before signing.

Is Car Insurance Still Required During the Pandemic?

Despite less people being on the road, car insurance is still required in every state by law. This will likely not change in the near future, no matter the recovery rate of COVID. Car insurance protects you, your passengers and other drivers on the road in case of an accident, as well as protects your pocket from expensive damages to your vehicle.

In these difficult times, no one wants to face worrying expenses in the wake of an accident. If you are back at work or on the road, make sure you have the proper insurance to protect yourself, your passengers and your livelihood.

COVID’s Affect on Your Car Insurance

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