How the COVID-19 Lockdown Could Impact Your Auto Insurance Premium

The COVID-19 pandemic has taken a toll on everyone, not just in Texas, but around the world. Many businesses have temporarily closed their doors and people have been ordered to stay home and isolate.

With so many people sheltering indoors, there hasn’t been as much of a need to drive to and from work—or anywhere for that matter. This means that countless vehicles have been confined to garages until the pandemic is over.

Yet, many people are still paying for auto insurance coverage, despite the fact that they haven’t driven their cars in weeks.

Is paying for auto insurance in Kennedale still necessary, even if you aren’t driving your vehicle? And, if so, how can you lower your car insurance premium during the COVID-19 pandemic?

Keep reading for the answers.

Can I Cancel or Temporarily Suspend My Car Insurance?

If you haven’t been driving your car for a while and don’t expect to be driving it anytime soon, you may be wondering if cancelling your car insurance is a good idea.

Here’s the thing: if you suspect you might need to drive your car—even if it’s just around the corner to the grocery store—you shouldn’t cancel your auto insurance in Kennedale, or anywhere else for that matter. If you get caught driving without car insurance, you could face legal repercussions such as fines, a license suspension, or even jail time.

There are also laws regarding “financial responsibility” in all 50 states that require drivers to show proof that they can pay for damages (both to their vehicle and to others’ vehicles) if they get into a car accident. Without car insurance, you don’t have this proof.

Some car insurance agents in Kennedale might allow you to temporarily suspend your auto insurance. This option is usually reserved for customers who are traveling for long periods of time or leaving for military deployment, meaning their car will not be used at all.

Talk to your Farmers Insurance agent in Kennedale to see what options are available to you during the COVID-19 pandemic and whether you can temporarily suspend your auto insurance.

Just keep in mind that even if you aren’t driving your vehicle, auto insurance coverage could still be beneficial. If you suspend your auto insurance coverage, you may not be covered for damages resulting from things like theft, vandalism, or fire.

4 Ways to Reduce Your Auto Insurance Premium during the COVID-19 Lockdown

If you do decide to continue paying for auto insurance coverage, here are a few ways you could lower your premium.

 Reduce Your Coverage

If you have two vehicles, but only plan on driving one of them, you could lower (not suspend) your auto insurance coverage on the vehicle that is idle. The benefit of doing this is that the vehicle you are not driving will still have the mandatory coverage required by law, but you can save quite a bit of money in the long run by not having to pay for coverage you don’t need.

Just remember to notify your car insurance agent in Kennedale as soon as your situation changes and you begin driving your second vehicle again, so that you have the required coverage in case you need to file an accident claim.

Ask about Discounts

Did you know that, as of April 2020, many auto insurance companies in Kennedale, Texas and in other U.S. states are offering refunds or credits to drivers on their car insurance premiums due to COVID-19? These credits add up to a whopping overall $6.5 billion in savings on auto insurance policies sold in the U.S.

Talk to your car insurance agent in Kennedale to find out what savings you might be eligible for during these unprecedented times.

In addition to these discounts and refunds, you might also be able to save on your auto insurance premiums if you bundle your home and auto insurance together, or if you have safety features and driver-assist technologies installed in your vehicle, such as lane mitigation or a backup camera.

Shop Around for the Best Offer

If your auto insurance coverage is up for renewal, it might seem a bit daunting to have to shop around for a new policy, especially with everything going on with COVID-19. But you may be able to use that to your advantage.

As mentioned above, many auto insurance agencies in the U.S. are offering significant discounts due to the pandemic. Be proactive and explore your options by comparing auto policies and premiums.

Don’t just look for the lowest rate; look to see how each insurer is handling the pandemic. The way auto insurance companies are stepping up to help their customers right now says a lot about their values as a business. This is a good indication of the type of service you can expect from them.

 Lower Your Annual Mileage

Another way to save money on your auto insurance premium in Kennedale is to reduce the number of annual miles you drive as listed in your insurance policy. With COVID-19, many drivers are using their vehicles less than they normally would. Some drivers aren’t driving their vehicle at all.

How you use your vehicle can impact the amount of money you pay for car insurance each year. Typically, the less you use your car, the less you pay for your auto insurance premium. If your usage has changed, you may be able to save some money.

Let your car insurance agent in Kennedale know that you are driving less and see whether you can change your vehicle classification from “commuting/pleasure” to just “pleasure.”

Again, just keep in mind that once the lockdown ends, you must contact your car insurance agent in Kennedale to let them know that you are returning to driving the same distances you once did.

Talk to a Farmers Insurance Agent in Kennedale Today!

Farmers Insurance – Crystal Schuder Agency can help you find the right auto insurance coverage that fits your needs and your budget. As a car insurance agent in Kennedale, we can help you feel more confident driving—even during the COVID-19 pandemic—knowing that your car will be covered in almost every event. Contact us today to book a consultation.

 

 

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