TALLAHASSEE, Fla. — Driving rates are down 40% since COVID-19 started, which means insurance companies are making money because people aren’t filing as many claims.
Now is the time to reexamine your car insurance policy. According to Insurify, 25% of companies are giving refunds and 40% are offering payment relief.
If your company is in that 30% that isn’t offering any relief from COVID-19, here's what you should do.
“Drivers can consider dropping their coverage to state minimum, over the course of however long these stay at home measures last,” said data scientist Kacie Saxer-Taulbee.”Or get mileage based insurance if they’re not driving that much.”
One thing that should be avoided during this time is dropping your insurance completely.
“That’s actually going to cost more in hidden fees than you might expect,” said Saxer-Taulbee. “When you go to reinstate that insurance you’re going to get it with insurance penalties for that lapse in coverage. Plus the DMV is going to charge you reinstatement fees. We estimate that just for a 60-day lapse in coverage it will cost most drivers in American about $200.”