The global pandemic that is covering the globe at the moment is taking its toll on every single one of us and in all kinds of shapes and sizes. We have already taken a look at the impact it is having on the automotive industry in general but as things have developed and more support is out there. One of the latest things that has happened that every single driver out there needs to know about is the effect that COVID19 has on car insurance.
It’s one of the much more recent areas of effect the virus has had on our daily lives but it’s also potentially a massive relief, especially for those out there with larger premiums. Because of how much is changing, car insurance companies are just one of many industries that are adapting to help their customers. How to select car insurance.
Let’s look at what’s going on.
Changes in Purpose Use
Firstly, it’s not news that a huge percentage of the population is now driving less. There are much fewer people out there that are diving like they were before the lockdown took place, and as a result, the roads are completely different. How to get cheaper car insurance.
What that means for you is that if you are one of those people who are driving for different reasons than normal, you can get coverage for that according. This is mostly applicable to those of us who are now no longer commuting at all instead of every day, but there are lots of different ways this can apply. They all mean that you can often get cheaper premiums in the short term and from some companies, that includes money back too.
Changes in Mileage Compensation
Just like the point above, COVID19 is also effecting your car insurance requirements by changing the mileage that you’re doing too. The difference in the purpose that you have in your premium also often reflects a change in mileage. It makes sense after all since even if or when you are not at work, you still won’t be using your car as much.
The result of this one is exactly the same. There’s a strong chance that you can get money refunded to you from your original quote by adjusting your mileage with your insurance provider, and they’re even waving the admin charges to do this too. It can be a great way to get money back and make sure that you aren’t paying for services that you are not actually going to be using in the first place.
Finally, car insurance companies are also following suit in a lot of cases with the banks. There are multiple ways that insurance providers are making changes and offering lifelines to customers who didn’t even know they could have them.
This is mostly looking at with payment holidays to allow people to stretch out their cash for longer than possible, but also remember the impact that can have to your overall repayment amount if you’re paying monthly. Your interest could still grow since you are paying over more time, but that again depends on the provider.
No matter what has changed in your life, it could well be worth giving this some serious thought to making sure that you aren’t wasting any more money than you need to from COVID19 affecting your car insurance. In times of such uncertainty as now, every little change can have a massive impact on the future. For more on the topic, check out this from the ABI.