COVID-19 has disrupted the operations of many businesses across the country. As a result, it left millions of Americans without work. Data showed that at least 24.2 million Americans could not work at some point in the least four weeks due to pandemic-related business closure. In August, about 31 million Americans received unemployment benefits because they have lost their jobs.
Impact Of COVID On Auto Insurance
The millions of unemployed Americans have far-reaching effects on the US economy. It indicates that millions of Americans have lesser purchasing power, which will significantly affect numerous businesses' revenue.
Consequently, many Americans will find it challenging to pay their financial obligations. And one of those affected obligations is car insurance premiums. With lesser income, most American households will focus their spending on the essential needs of their families. Paying auto insurance premiums will be at the bottom of their priority list.
Importance of Car Insurance
Car owners must have auto insurance since it is mandatory in most states. The policy protects you and your car. If you keep on driving, you are always at risk of getting involved in vehicular accidents. Your policy gives your financial protection from the expenses brought by these accidents.
The policy can cover the costs associated if you hit someone you hit on the road. It can also cover the medical expenses to treat your injury and your passenger. Likewise, your insurer can pay the costs of repairing your car.
So, letting your policy lapse is not a good option. But if you lost your job and you can no longer afford your premiums, it is the right time to talk to your insurance provider about your situation. You might get assistance to avoid the cancellation of your car insurance.
Tips To Keep Your Policy
Conclusion
Driving without an auto insurance policy could prove to be very expensive. Most states require car insurance, and being caught driving without one could have unfavorable legal consequences.
If you find it challenging to continue paying your premium, it is better to talk to your insurer. Many insurance companies and nonprofit organizations understand the plight of policyholders. That is why they are offering assistance to help you keep your policy.
At Meyerson-Roth Co Inc., we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (516) 432-5800. You can also request a free quote by CLICKING HERE.
The millions of unemployed Americans have far-reaching effects on the US economy. It indicates that millions of Americans have lesser purchasing power, which will significantly affect numerous businesses' revenue.
Consequently, many Americans will find it challenging to pay their financial obligations. And one of those affected obligations is car insurance premiums. With lesser income, most American households will focus their spending on the essential needs of their families. Paying auto insurance premiums will be at the bottom of their priority list.
Importance of Car Insurance
Car owners must have auto insurance since it is mandatory in most states. The policy protects you and your car. If you keep on driving, you are always at risk of getting involved in vehicular accidents. Your policy gives your financial protection from the expenses brought by these accidents.
The policy can cover the costs associated if you hit someone you hit on the road. It can also cover the medical expenses to treat your injury and your passenger. Likewise, your insurer can pay the costs of repairing your car.
So, letting your policy lapse is not a good option. But if you lost your job and you can no longer afford your premiums, it is the right time to talk to your insurance provider about your situation. You might get assistance to avoid the cancellation of your car insurance.
Tips To Keep Your Policy
- You could ask your insurer to revisit your policy. Any insurance provider understands the situation of its policyholders. You and your provider can work on something to bring them down your premium cost. You could opt to reduce your coverage.
- Request your insurer to extend your grace period. Many insurance companies extend the grace periods while others have waived payment for late fees. Others are offering payment plans to their customers. You can check the financial relief that your insurer is offering.
- You can ask your insurer for discounts. Many car insurance companies offer discounts and promos to avoid policy cancellation. You can try to obtain the discounts that your insurer provides. Some insurers are also offering refunds and premium credits.
- Apply for financial assistance. There are nonprofit organizations that are helping drivers to pay their premiums. If you are having financial difficulties, they can provide financial aid to cover some of your insurance premiums.
Conclusion
Driving without an auto insurance policy could prove to be very expensive. Most states require car insurance, and being caught driving without one could have unfavorable legal consequences.
If you find it challenging to continue paying your premium, it is better to talk to your insurer. Many insurance companies and nonprofit organizations understand the plight of policyholders. That is why they are offering assistance to help you keep your policy.
At Meyerson-Roth Co Inc., we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (516) 432-5800. You can also request a free quote by CLICKING HERE.
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