Understanding Insurance Adjustments

How to Save Money on Auto Insurance During the Pandemic

Times are tough right now for a lot of Americans and people around the world. The COVID-19 pandemic has caused some people to lose their jobs and some business owners like restaurants are finding it difficult to remain in operation with fewer customers coming in. If your situation sounds anything like this, you might be looking for additional ways to save money in any way that you can. Your auto insurance is one bill that you pay every month, but it might be possible to get the amount you are currently paying lowered, even if it's just temporary.

Here are some tips for how you could save money on your auto insurance during the pandemic and possibly even after it's over.

Call and Ask

This first tip might seem way too easy, but it might also be the most effective way to get immediate relief on your insurance bill. Every auto insurance company is different, but many of these companies understand that some of their customers are going through difficult times. Some insurance firms have voluntarily announced reductions in insurance premiums for certain customers. Other insurance firms have arranged special payment plans for customers affected by COVID-19. If you aren't currently receiving a discount or altered payment terms but you believe you may qualify, just pick up the phone and see what happens. The worst they can say is no.

Temporarily Increase Your Deductible While You Aren't Commuting

You generally want your insurance deductible to be as low as possible so that you don't have to deal with a huge repair bill when you are in an accident. But with that said, you might also be driving your car far less right now than you did before the pandemic. If you are working from home or telecommuting until this is all over, your car might stay safely parked inside your garage on most days. Raising your deductible will lower your monthly premium. Yes, it's a potential risk because you will have a larger deductible payment to make if something does go wrong out on the road, but since you aren't driving that much right now, it might be a risk worth taking.

Look Around for Better Rates

Even in the best of times, it can pay to periodically review your auto insurance coverage and see if there is a better deal somewhere else. Sometimes simply letting your current insurer know you might switch might get you a better rate. But it's also possible you could find a new auto insurance company that truly will give you a better deal. Reach out to companies like Illinois Insurance Center Inc to learn more.