All you need to know about car insurance discounts due to the coronavirus

With the number of COVID-19 cases increasing with each passing day, people are now spending more time at home. There is not much traffic on the roads. The car insurance companies are now offering drivers with car insurance discounts due to the coronavirus.

You might be thinking of buying a new or used car, or perhaps you want to know what you will be paying monthly for your insurance coverage during the coronavirus pandemic.

Does COVID-19 affect your monthly payment?

You will be surprised to know that many insurance companies are offering refunds as well as credits to their policyholders during the COVID-19 pandemic. In fact, car insurance companies have offered $6.5 billion in discounts and returns. There is a fierce competition going on between the car insurance companies, with regards to providing the best discounts during the COVID-19 pandemic.

Some insurance companies are offering car insurance discounts due to coronavirus pandemic. They do not want to lose customers.

Check out the following car insurance companies.

  • GEICO
  • Chubb
  • State Farm
  • American Family
  • Hartford
  • Liberty Mutual
  • Farmers
  • Nationwide

Some companies have introduced refund plans for their clients.

Four steps open to you

If you don’t know about any insurance discount that is currently available, consider taking the following steps:

  • You can ask your car insurance provider to revise your insurance policy. Since you are not driving frequently, the amount you pay in premium will be much lower. You can ask the insurance provider to recalculate the premium on the basis of a lower mileage
  • If you drive your car occasionally, you can ask the insurance agent to provide you with the minimum coverage policy. You will have to pay a lesser amount as premium
  • Get your deductible amount increased. This will naturally lower the amount of premium you will have to pay.
  • And if the insurance company is not offering any discounts or is not willing to modify your policy then you can and should change your insurance provider. Get a new policy from another insurance company that will either provide discounts in these critical times, or is ready to make out a policy that suits you

Insurance coverage available

Even during these critical times, most states require you to have liability insurance coverage.

It means, if you are going to buy a car for the first time, you will need an insurance coverage policy. But if you already have an auto-insurance policy, all you have to do is to get it renewed.

All car insurance policies provide coverage for you and your family members. Some of these coverages are mentioned below:

  • Liability Protection: This will cover expenses if you have an accident, or have injured someone or damaged the property
  • Collision Protection: This provision will cover any type of accident in which your car is damaged
  • Uninsured/underinsured motorist coverage: This insurance policy will cover the expenses for medical treatment, or damage to your car in case the at-fault driver does not have insurance to cover your expenses, or his/her insurance is not enough
  • Comprehensive Protection: This is an insurance policy that protects you against theft, vandalism, fire, flood, or any natural cause that has damaged your car

Before you get any discount in car insurance policy, you need to submit all the information about your car to the insurance company. They will take into account your age, how much driving experience you have had, the state you are residing in, your accident, traffic violation and conviction records, your credit score, and last of all the year, model and make of your car. The company will then check the record to ascertain if your discount claim during the pandemic holds ground or not. The final decision to offer car insurance discount due to the coronavirus solely rests on the company’s discretion.

How much liability coverage should be enough

Having liability insurance coverage is mandatory in most of the American states. As mentioned earlier, the company is responsible to pay for the treatment, medication and damage done to the car. But having the minimum liability coverage might not be a good idea. The company will cover as much as you have agreed to.

For example, you want the company to cover up to $60,000 to cover medical treatment and damages done. You have to pay a fixed amount each month as premium to continue getting the coverage. In case, if the cost for the treatment is more than the coverage you get, then, you will have to pay the remaining amount yourself.

The amount you have to pay for liability insurance coverage will depend on two main factors: how much you can afford, and how real is the possibility of meeting an accident in the area where you reside.

Conclusion

The coronavirus has drastically affected our lives. With fewer cars on the road, the insurance companies are formulating policies – to provide car insurance discounts due to coronavirus – catering to the prevailing situation.

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