We are all concerned about the financial impact of the shut down the world is living. It is not easy to save money during the coronavirus. The first thought is to cut any unnecessary expenses like an online service subscription, a magazine, phone bills, and other monthly charges we can live without.
The big question is: what about my auto insurance policy? Since most of us are not using our vehicles as much as usual, it is natural to start evaluating the possibility of cutting the insurance cost by canceling out auto policy. But, is this a good idea? In this post, you will learn about the best options to save money with your insurance policy during the coronavirus.
How can I save money during this time?
This is a tough period, we all need to take action to prevent our health and finances from being affected negatively.
To cancel your policy could sound like a viable option but it could put you in a bad position later on. We hope these recommendations help you make the right decisions.
1. REDUCE COSTS
Instead of canceling your policy, we recommend reducing your existing coverage to the State minimums to keep it active. That way you will avoid any negative consequences like penalties or tag suspension. This is the time to have a conversation with your insurance agent and evaluate the best ways to keep insurance money in your pocket by having any late fees waived or re-quoting.
Your insurance agent could help you check if you are entitled of any extra advantage, some insurance companies are offering special support programs to their customers in the form of premium refunds and other benefits.
2. AVOID LICENSE OR TAG SUSPENSION
The penalty to letting your insurance cancel is a possible suspension of your license and tag. To avoid this, the best option is to keep your policy active at a minimum, since you are not driving your car as often. Talk to your agent and evaluate your options to make the smartest move.
3. AVOID FUTURE RATE INCREASES
Canceling your policy now could apparently “save you money” but this will create a lapse in coverage that will impact negatively your rates when you rewrite your policy. In some cases, your rates could even double if your insurance lapses.
4. FIND LOWER RATES
Now is the time to quote and evaluate other options. By re-quoting, you could evaluate what other carriers are offering you right now.
FREE: Quote in more than 15 insurance companies at the same time
Re-quote for possible lower rates for the same coverage. If you let us help you, our agency represents multiple companies to shop and make sure you are getting the best rate.
CONCLUSION
Canceling your insurance coverage is not a good idea, due to the consequences explained above. When it comes to insurance, each case is different. That is why we recommend assessing your coverage and evaluate all the options with the help of your insurance agent. If you need a specialized insurance agent, feel free to contact us, we have been serving the South Florida area since 1996.
Remember, you are not alone, we are all in the same boat! Our agents are available to help you make the right decisions regarding your insurance coverage during this time.
Give us a call (855) 267-0900
