While many focused on other areas of growth and interest, here comes the COVID-19 pandemic, and it completely disrupts our way of life.
Nonetheless, Auto insurance companies have responded to the plight of car owners by releasing a pandemic relief plan. Now you can lower your car insurance premium if you are having difficulties paying up.
During the compulsory lockdown, several car owners across the world had to park their vehicles. But now that normalcy is fast unfolding, you can call your car insurance company to discuss the financial options they have available to help ease your auto insurance burden.
Here are 5 simple steps on how to go about it:
- Ask For A Discount
When you don’t ask, the answer is always no, but when you do, at least you’ll stand a chance of getting a yes.
It is the same with your auto insurance premium, you’ll have to pick up your phone and ask your insurance company if you qualify for new discounts.
Highlighted below are some of such discounts:
- Discount For Good Driving
If you did not know that your car insurance company can possibly reward you for being a very careful driver, well, now you know.
They can grant you a discount of up to 40% as a reward for safe driving. Also, these discount rates will depend on your insurance company and your state.
- Discount On Car Safety
Your insurance company is likely to relieve you of up to 40% discount on your bills, for having car safety equipment like airbags, anti-lock brakes, etc.
- Discount On Multi-Car
Having more than one car insured with the same company can actually be a blessing in disguise. That is because you can get up to a 25% discount off.
- Discount On A New Car
That is another discount that you can qualify for if your car is less than 3 years old.
To know your eligibility for the above types of discount, you should visit theaa.ie car insurance site for more details.
2. Save Money By Demanding For A Higher Deductible
A car insurance deductible is the amount of money you agree to pay from your purse for a claim, which means that if you have a $1,000 deductible, and $4,000 in damages, covered for an auto accident, you are expected to pay only $1,000 while your insurer pays the rest.
How to use a higher deductible to lower your car insurance premium
Deciding to raise your deductible will mean that when you file for an auto insurance claim, your insurer will only need to pay out less.
This increase will help you save on costs. However, you should also be aware that if you make a claim that already has a deductible, then you’ll have to pay more.
3. Ask For Financial Relief
If you are experiencing difficulty paying your insurance bill, now is not the time to keep mute.
Despite the fact you couldn’t move your car around because of lockdown, you can still ask your insurer for financial relief, especially if you know you did not meet up with one of your monthly payments.
- Demand For An Extension
Normally, this period lasts for about 10 days, but some insurers can be gracious enough to give you up to 60 days to recover yourself financially and pay up.
Your insurance policy will not be cancelled during the grace period, but eventually, you’ll still have to pay up all that you are owing.
- Find Out About The Relief Payment Plan
As a way to support car owners in these trying times, insurance companies are open to questions on how to set up a relief payment plan that is flexible enough to help you maintain your insurance policy.
- Insurance Penalties
Failure to meet up with payment for your auto insurance will attract a fee and penalty.
However, if you’ll make the bold move of contacting your insurers, you could be surprised to see that they can waive off the penalty, as a way to support you.
By doing this, you’ll also lower your car insurance premium.
4. Should You Cancel Your Car Insurance?
It might seem like an easy way out after all the car is grounded for most of the day. If you have such thoughts brewing, you need to have a rethink because cancelling your car insurance will mean that you’ll have no coverage, and you will be held responsible for damages and medical bills.
Also, in some countries, driving uninsured is a big deal, and it can land you in jail.
5. Temporarily Remove Car Insurance Coverage
It is either you’re going on a military deployment or a long term trip to a far country, else, a COVID-19 pandemic is not enough reason to remove your car insurance coverage. You wouldn’t lower cost that way.
Suspending coverage only works in circumstances where you know you wouldn’t be using your car at all. Even at that, you should still leave the comprehensive car insurance coverage, in case of theft and unforeseen damages.
Life itself demands that we embrace changes, and as humans, we are expected to adjust to changing times. The COVID-19 pandemic has indeed altered the way we once lived and carried out business, even down to our auto insurance.
However, you do not have to play the victim as these tips will help you lower your car insurance premium, as you find a balance in your finances, even in these times.