With so many people losing jobs amid this pandemic, everyone is looking for ways to cut costs. If you’re thinking about cancelling your car insurance to save money, there are a few things you consider first. Here’s what you should know about car insurance cancellations due to Coronavirus.
1 – Cancelling Your Policy Impacts Vehicle Registrations
Car insurance is mandatory in the state of Massachusetts. Thus, if you cancel your car insurance, you will no longer be able to drive your car. If you need your car, consider changing a few things in your policy instead. You can lower your premium by increasing your deductible and/or adjusting coverage or coverage limits. Contact your insurance agent to discuss these options and request a quote.
2 – Ask About a Grace Period or Deferral
Many insurance companies are offering special programs to help individuals affected by Coronavirus. This may include an extended grace period or deferral of payments. The programs vary, so contact your insurance company for more information. Do this before missing a payment or cancelling your policy.
3 – Discounts May Be Available
This may be a good time to review your policy and determine whether there are other ways to save. For instance, could switching companies save you money? Are you taking advantage of multi-policy discounts by combining home and auto policies or having multiple vehicles on the same policy? Are there discounts available through your employer or other organizations that you belong to? If you haven’t reviewed your policy for several years, you may be missing savings opportunities.
More on Car Insurance Cancellations Due to Coronavirus
Cancelling your car insurance is not always the best solution to saving money during these difficult times. Once you cancel, your previous insurance rate is no longer locked in and you will likely pay more when you go to repurchase insurance later on. Additionally, the lack of a vehicle may reduce your ability to find and secure a new job and perform essential tasks during the pandemic. Insurance companies understand that these are unique times and are willing to help you find a solution, whether it be adjustments to your existing policy, a deferral, or an extended grace period. Your first step should always be to communicate with your insurance company to discuss options. We hope that this information on car insurance cancellations due to Coronavirus is helpful. Please feel free to reach out to us for assistance with your Massachusetts car or home insurance.