A Guide to Reducing Car Insurance During COVID-19

A Guide to Reducing Car Insurance in Charlotte During COVID-19

During the COVID-19 pandemic, financial security is a major concern. With unemployment numbers reaching record heights, it will be a long time before the economy recovers. This has left many families wondering how they are going to pay their bills during this challenging time. One bill that many people are concerned about is their car insurance costs.

Surveys have revealed that many people are driving less. Given that there are shelter in place orders across the country and many people are working from home, people simply aren’t driving as much as they used to. Therefore, many families have thought about canceling their car insurance altogether. Even though this would save money and people aren’t driving as much, this could expose someone to serious legal and financial consequences. After all, if someone drives a car at all, they are required by law to have car insurance.

For families in Charlotte who are wondering how to reduce car insurance during COVID-19, it is important to know that there are options available.

Ask For COVID-19 Financial Relief from Your Car Insurance Provider

Those who are used to driving around Charlotte have likely seen that traffic is much lighter than it used to be. Even I-77 is incredibly light during rush hour where it used to be a parking lot. South Park Mall looks deserted and the intersections throughout South Charlotte aren’t as backed up as they used to be. 

Clearly, there is greatly reduced driving. This means that insurance companies aren’t facing the same level of risk during the pandemic. As a result, simply contacting the car insurance company and asking for a break can lead to lower rates.

Those who have an insurance agent should start by talking to this professional. Some of the options to ask for include:

  • Grace Periods: Those who miss a payment on their car insurance run the risk of losing their protection within seven to 10 days. Instead, call and ask for an extended grace period. They might not cancel the policy for up to 60 days. This can give people the time they need to come up with the money; however, keep in mind the next bill might show up sooner. The bill still accumulates during the grace period.

  • Penalties and Late Fees: Anyone who misses a payment on their insurance plan might be subject to late fees and penalties. Simply call and ask them to waive these fees. Those who have been with a company for a long time often have built up a good relationship with them. 

  • Request a Payment Plan: Many insurance companies are openly advertising that they want to work with their customers to find a way to balance their budgets. A payment plan can help families get through this difficult time.

Request Discounts from the Insurance Company Unrelated to COVID-19

Charlotte is known for being a city that is friendly to families. With numerous parks, countless sports leagues, and gorgeous neighborhoods, parents are flocking to Charlotte with their children. The good news is that many families might be eligible for a discount on their car insurance. At the same time, they need to know how to ask.

Some of the top discounts families can request include:

  • Multi-Policy Discounts: These are discounts that apply when people buy multiple policies from the same company. Those who get their car insurance, auto insurance, and life insurance from the same company might be eligible for a discount thanks to the bundle. The discount might be as high as 25 percent.

  • Multi-Car Discount: This is a discount people get when they insure multiple cars with the same company. Families that have three or even four cars could end up saving a significant amount of cash.

  • Discounts for Safety Features: Some insurance companies are even offering discounts for having additional safety features. These might include airbags, anti-lock brakes, and even daytime running lights. Because insurance companies see these cars as having a lower risk of being involved in an accident, they are often willing to reduce the premium.

  • Safe Driving Discounts: Drivers without car accidents and tickets are less likely to cost their insurance company money. As a result, the insurer might be willing to provide a discount of anywhere from 10 to 40 percent.

What To Know About Car Insurance Discounts During COVID-19

Charlotte is a diverse place and people move to this city from all over the country. These discounts might not apply to everyone; however, there are a few points that everyone should know. These include:

  • Discounts might vary by the insurance company

  • Discounts might be capped at a certain limit

  • Discounts are not usually automatic

What this means is that people won’t know what discounts apply to them unless they call and ask. While it can be frustrating to talk to an insurance company, this can save people a tremendous amount of money. These are tough times for everyone. Sometimes, all anyone has to do is call and ask.