As more Americans are staying home each day and limiting usage of their vehicles, roads are becoming increasingly empty. With fewer cars on the road, there are much lower chances of accidents, and much higher savings for car insurers. That being said, companies might be able to save $100 Billion from claims – which are now being refunded to customers. So how do you know if you’ll be taking advantage of this lucky deal?
Rebates on Insurance Premiums
With almost everyone staying home and limiting usage of their vehicles, vehicle traffic in New York City has gone down significantly. With this decreased risk of accidents and other car-related issues, this means that insurance premiums are decreasing as well. Some insurers such as Allstate, Geico, and Progressive are giving rebates on premiums. Most of these companies have also updated their payment and cancellation terms. But what other relief is available?
How Do I Know if my Insurance Provider is Doing This?
Some insurance providers are automatically delaying cancellations and deferring premiums, but others require customers to directly call their agent or insurance company. Depending on the provider, contact information as well as information is listed on the website. As the current situation is changing, so are insurance policies, so it’s best to contact them directly.
Is a Refund Available?
With less danger on the roads, the insurance industry could end up saving a whopping $100 Billion from claims. Many insurance providers said they planned to automatically pass a portion of those savings to consumers, and it varies from each provider. Details about these special savings are displayed on insurance company websites, most of which have a unique section dedicated to the COVID-19 pandemic.
Depending on their insurer, customers will likely see these refunds applied automatically – either as premium reductions or account credits. Policyholders do not have to take any action or make any requests. If there are no automatic refunds, be sure to contact your agent.
Get Help With Premiums and Cancellation
Even if there is a cancellation or hold on payments, it doesn’t mean that you won’t have to pay later. Instead, insurance providers may pause payment for a month or more and then spread those payment amounts out over the remaining months of a policy. Many insurers are also no longer requiring insurance for drivers who are making service deliveries or giving rides to healthcare workers or patients.
In the Long Run
Because each provider has their own policies, it’s important for you to read the fine print and see how long payments or cancellations are delayed or cancelled, and when you’ll have to pay your premiums back. The COVID-19 policies can change depending on the current situation and vary from each provider, so it’s best to check your insurance company’s website. Because insurance laws also vary from state to state, these relief policies may also change depending on any new rules and regulations. If you have any questions about how COVID-19 and insurance policies, premiums and what types of coverages are affected, be sure to contact Friends Insurance Brokerage today.
Call us now at (718) 648-1313 to learn more!