"During these grim times, when the economy is struggling, it is important to reduce expenses and stick only to the basics. Since car insurance is an essential services, policyholders should check the latest ways to reduce coverage," said Gurgu C, Project Manager of Internet Marketing Company.
LOS ANGELES (PRWEB) May 21, 2020
Compare-autoinsurance.org has released a new blog post that explains to the drivers how to reduce car insurance expenses during this COVID-19 pandemic and following economic crisis. As the ongoing pandemic worsens in the US and the country remains in lockdown, tens of millions face the possibility of losing their jobs. Paying for some services, including car insurance, becomes more and more difficult. This is why policyholders should read the following tips.
For more info and free car insurance quotes, visit https://compare-autoinsurance.org/coronavirus-car-insurance-tips-how-to-save-money-during-these-difficult-times/.
When faced with a limited budget available, car insurance policyholders should take into consideration the following tips:
- Ask the current insurance provider if they implemented coronavirus-related payment delays or plans. Many insurance companies quickly reacted to the coronavirus outbreak and its economic consequences. In order to protect their businesses and keep clients with them, companies allowed some compromises, including letting the clients suspend policies, delay premium payments, pausing cancelations caused by non-payments or non-renewals. Some companies even provide some forms of payment assistance. After this pandemic passes, the economy is likely to recover and many persons will return to work. This is also what insurance companies hope for and this is why they implemented special terms and conditions to provide support. It is important for the policyholders to talk with their insurers before the bills are issued.
- Temporarily suspend coverage. This basically means putting the coverage on pause and resume it when the policyholder is able to pay for it again. It's another effective way to prevent car insurance lapses and face higher premiums in the future. Usually, companies do not allow clients to suspend their policies, but in this case, they may make an exception. Either way, it is recommended to talk to the insurer and get its confirmation. This option may not be available for those who have car loans since lenders will ask for coverage on the vehicle.
- Totally drop coverage. Policyholders can ask to cancel coverage with any insurer and sign a new contract when the economic climate is more favorable. Just like the previous option, canceling coverage is likely unavailable for those who have car loans. Use this option only if you do not plan to drive the car after canceling the contract. Driving while uninsured is illegal and the penalties will be severe. Furthermore, the driver will be considered high-risk, thus making it harder to find coverage at affordable prices.
- Remove certain coverage and stick only to the minimum state-required. This is a good alternative for those who want to stick to the basics and pay less. But first, make sure to read the state's legislation and minimum coverage requirements. While some states impose only minimum liability coverage, other states also require other types of coverage, like uninsured/underinsured motorist coverage, PIP coverage or other forms of medical payment coverage. If the policyholder already has a solid health insurance plan that covers him in case of an accident, keeping other forms of insurance may be redundant.
- Keep only the essential driver on the policy. Excluding drivers from a family car insurance plan is a sound way to get cheaper premiums. If some family members do no longer need to use the car, they should be excluded from the policy. Since schools and universities are closed, it makes sense to exclude teen drivers from policies. Teen drivers are usually the most expensive to insure and removing them from the coverage plans will greatly improve the rates. Just keep the person(s) who need to use the car and go to work
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