How does COVID-19 affect Car Insurance?

This crisis that has affected the entire world has had an impact on almost every part of society. You may be surprised of the impact on Covid-19 has had on insurance rates.

Back in 2020 and most of 2021…

When the pandemic first hit the country, stay at home mandates began to increase state by state.

Insurance companies recognized that with the State Mandates to stay at home, there was a decline in the number of drivers on the road. With a decline in drivers, the amount of accidents and claims were significantly lower.

Most car insurance companies are no longer offering pandemic related rebates or discounts. However, there is a chance that if you qualified at the time, perhaps your car insurance company will work with you to help you receive what was owed to you. It doesn’t hurt to ask!

If your Insurance provider is not offering these discounts/refunds, you may be able to shop for another company that is. Here at A Plus Insurance we have multiple trusted carriers and we can do the shopping for you.

Why Am I Seeing Car Insurance Rates Increase in 2022?

Unfortunately, we are still in a pandemic, and auto rates that seemed to have plummeted in 2020, are on a steady incline.

Why Is This?

Stay at home mandates have mostly been lifted throughout the country and overall, driving behavior is returning to pre-pandemic levels.

This means that accidents are on the rise, and insurance companies are once again receiving a multitude of claims.

As if this isn’t enough…there is a shortage of car parts and labor, meaning the cost to repair vehicles and replace parts has also skyrocketed.

There are plenty of non pandemic reasons that insurance rates go up on an individual basis as well.

How to save money on your Insurance policy during Covid-19

There are several ways you can save additional money on your Insurance premium, even if your insurance provider is not offering refunds.

First, we recommend you do not cancel your insurance policy at this time if you can afford it. This will only lead to an increased price when you go to purchase a new policy later down the road.

By law, all drivers are required to carry at least the State Minimum Liability Limits to make them legal on the road.

If your policy contains extra coverages that may not be needed at this time, like Comprehensive and Collision, you may want to consider altering your coverages.

If you are financing a vehicle, you will still need to carry full coverage to comply with your lender. But, if you have an older vehicle with full coverage that you are just not driving lately, you should consider altering your coverages for cheaper prices. Certain coverage options may be redundant for you.

Aside from asking your company for discounts, and altering coverages during COVID-19, if you are still not paying what you think you should be, you can always shop different companies.

With the prices changing with each company, this makes it a great time to check other Insurance providers for a more competitive rate. Don’t be afraid to save money on your Auto Insurance by switching companies.

Give us a call, we can requote you in 10 minutes FREE! If you like the new rate we can move forward with it, if not keep the rate you have.

What to do if you can’t afford your payment

If you are having a hard time making your monthly payments on time, communication is the best policy. A lot of Insurance companies recognize the struggle, and have payment plans available.

We do not know you are struggling unless you reach out. So Instead of having your car Insurance policy cancelled for non payment and sent to collections, see if your company can offer an extended due date.

Since COVID-19, most companies are willing to work with customers to adjust due dates and make payment arrangements without cancelling.

The worst thing you could do is just let your insurance policy go without any notice, or request to cancel.

The policy may continue to charge until the Insurance company cancels the policy resulting in you owing more money.

Last Updated on by Alexandra Vileikis