As many Americans scramble to adjust to the sometimes overwhelming effects of COVID-19 on their daily lives, they are looking at any way possible to save money. One uncertain area they are starting to look at is car insurance.
The pandemic has changed how and when we do almost everything and car insurance is no exception. So, how does COVID-19 affect the future of car insurance, and especially car insurance premiums? Let’s talk about that.
The most important thing: don’t cancel your car insurance
The pandemic has not changed the laws around car insurance. In the U.S., you must have car insurance to operate a vehicle on public roads. And, if you are caught driving without auto insurance you will likely be hit with some pretty large fines. You may even have your license suspended which leads to even more costs when trying to purchase car insurance.
If you are responsible for an accident while not having auto insurance, you are looking at a world of hurt. Legal expenses, medical expenses and car repair bills that you have to pay yourself can all be consequences of driving without car insurance.
The bottom line is, keep your insurance even if you drop it to low levels. Don’t take the risk of driving without car insurance.
How do i reduce my car insurance bill?
Instead of cancelling your auto insurance, do everything you can to reduce your rate. It helps to know the factors that are considered when determining your rate. These include:
- Deductible amount
- Coverage limits
- Vehicle type
- Driving history
- Where you live
- Your Age
Every car insurance company has its own formula, or algorithm, that uses these and other factors. You may not know exactly how it works but paying attention to these factors can help you reduce your monthly car insurance premiums.
Which factors are most important?
Most experts agree that there a few factors that are usually more important than others when it comes to determining your auto insurance premiums.
Your age is one of those important factors. Young drivers will see the highest rates due to their lack of experience. And those with a history of accidents and tickets will also see the highest rates. And if you are a young person with lots of tickets, you may have some problems.
Where you keep your car is also important. Vehicles garaged in high-risk areas, where theft and vandalism are common, are going to pay more to cover that risk for the insurance companies. Also, the type of vehicle you are insuring makes a difference. Obviously, a top of the line, brand new sports car will be more expensive to insure than a used Honda.
For more information specific to your situation and to get free online quotes, just fill out the InsuranceWins form. We’ll set you up with auto insurance companies you know, and you can decide which gives you the coverage you need at a price you can afford. Start shopping around today!