It feels like coronavirus has taken over every part of our life at this point. Because of it, we’ve changed where we go, how we shop, and how our kids go to school. Has coronavirus impacted insurance, too? In some ways, yes.
Here’s what you need to know.
Inability to Pay Premiums
The biggest impact has been on people working fewer hours, getting laid off, or being furloughed due to the coronavirus. With less money coming in and the stress of the unemployment system, you may not be in a position to pay all of your bills on time, including your insurance premiums. The vast majority of insurance companies recognize this. In many cases, before public pressure or requirement from state governments, many insurers began offering assistance.
Many, if not all, insurance providers have stopped terminating coverage for non-payment up to a certain amount of time. They are also offering temporary payment help to those who reach out. Don’t assume you’ll be okay if you skip a payment. It’s important to reach out and confirm what assistance is available.
Slower Claims Process
If you do need to file a claim for your home (as an owner or renter) or for your personal vehicle, coronavirus may impact how quickly your claim can be processed. Insurance companies want to keep their own employees safe while also following local and state guidelines for sheltering in place and working from home. This means a claims assessor may not be able to handle your claim as quickly as they once did.
Many companies are getting creative in order to better serve customers. Some assessors may be able to do an exterior inspection for damage. Others may be willing to go virtual and view the damage for your claim via video. Ultimately these decisions are made to keep assessors and customers safe while still taking care of your insurance needs.
Insurance Credits
Because of shelter in place orders and more people working from home, there are fewer vehicles on the roads. Which decreases the chance of an auto accident. The auto insurance industry recognizes this and also understands that many people are struggling financially right now. That’s why many companies have offered credits towards auto insurance premiums. Some companies offer a rebate of a specific percentage, for example 15 percent, and others offer a flat rate, for example $50.
Don’t Cancel Your Insurance to Save Money
With coronavirus deeply impacting household incomes, it’s understandable that you might be tempted to cancel coverage for auto insurance and other coverages to save money. In fact, that’s the worst thing you could do because you’ll leave yourself unprotected after an accident or covered peril. There are other ways to save money:
- Contact your insurance provider to ask about their payment assistance options.
- Increase your deductible to the highest amount you can afford to lower your premiums.
- Adjust your auto insurance to reflect your lack of commute and any other changes — especially if these changes will be long-term for you.
Need helping contact your insurer for payment assistance, filing a claim, or updating your information? Charlotte Insurance can help! Contact us today.