How COVID-19 Could Lower Your Insurance Rates
All across America, people are taking a financial hit as we fight to stay healthy against the COVID-19. Amongst everything else, there could be one place where you might actually see some financial savings.
As companies across America start demanding at citizens stay home and work from there, they’re not for profit groups who are actually looking out for Americans pushing for car insurance companies to give people a little break on their car insurance.
“We don’t bring as much risk to the table right now, so we shouldn’t pay as much for the coverage that we get,” says Doug Heller, insurance expert at the Consumer Federation of America.
Non-profit organisations have been extremely aggressive in their efforts to help American citizens. They have contacted every insurance commissioner and asked them to reduce the rates of insurance and offer customers who have been paying, credit or refund on their account.
“I’m not as concerned about how they do it. I want to make sure they aren’t holding onto money that belongs to the consumers of America who are struggling in this,” Heller says.
The rationale behind this is, insurance is based on How likely you are to get into an accident. Now if everyone staying at home and there’s not a lot of congestion on the road, what do they make sense for your car insurance also go down?
“As consumers, we can take action ourselves and get on the phone and call our insurance agent or our company directly and say, ‘Hey, my mileage is way down. I think I need a break,'” Heller says.
Nicole Beck from The Zebra explains “If you have a tree branch fall on your car or an animal hits it– you need to maintain that car insurance so that you’re still covered. If you drop your insurance you’re actually charged more when you re-up and get it later”.
“We’re only driving to the supermarket twice a week. We shouldn’t have to pay as though we are driving 1,000 miles a month,” says Heller.
If all else fails, thezebra also says that when they collect information on car accidents and what has happened in the year 2020, the impact of COVID-19 will ultimately show a reduction of cars and accidents on the road. The good thing about this is that they can reflect cheaper insurance rates in the year 2021 to help consumers.