The Effects of the Coronavirus on Auto Insurance Shopping

Like most things during the global COVID-19 crisis, auto insurance shopping behavior is undergoing a few changes.

These changes may not seem as significant because the auto coverage is still the same, but insurers are looking at more profits as they expect a drop in accidents.

Most insurers are also taking more steps than ever before to help the customers affected by the coronavirus—by sending refunds on monthly premiums and assisting those customers who can’t pay.

But all that’s just the tip of the iceberg.

Here are a few questions you may have about your auto insurance policy now that coronavirus has brought massive economic uncertainty into our lives.

Should You Cancel Your Auto Insurance?

This is one of the most pressing concerns for all car owners.

Amid stay-at-home orders, work from home models being implemented at most workplaces, and travel restrictions, using auto vehicles to travel, has significantly reduced.

But even if your car is parked outside, just catching dust, canceling your insurance isn’t the best call as it could raise your rates later and leave you unprotected if an unexpected accident befalls on your vehicle.

Can You Cancel Your Policy If You Have A Lease On The Car?

If you don’t own your car, you can’t cancel your insurance, as doing so would violate your lease’s terms.

Most leasing companies and lenders require that you maintain a certain level of coverage that’s usually slightly higher than the state minimum. This is used as a protection by lending companies to recoup lost money in case your car is damaged or stolen.

Can You Lower Your Auto Insurance Rates Without Canceling?

While some people who have the privilege to sustain a job while working from home and are adhering to stay-at-home orders, others still have to commute.

But using public transportation to travel isn’t a safe option, so most people have started driving to minimize their contact with others. In this scenario, you need auto insurance more than ever.

Additionally, if you’re cutting expenses, you can make your policy cheaper instead of canceling it altogether. Auto insurance companies can lower your rate if you’re driving fewer miles than expected.

If you have any more questions about changing the terms of your auto insurance policy or you’re on the lookout for the right package for your vehicle, Gilmartin Insurance Agency can help you out.

They offer competitive and comprehensive auto insurance packages to protect you against risks during the coronavirus. They offer insurance in Lehighton, Jim Thorpe, Pittston, and Clarks Summit. You can compare packages from all their insurance companies to receive the maximum amount of coverage at the best rate.

Get a quote by getting in touch with them today!

Categories: Finance,Insurance

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