COVID-19 not only uprooted daily lives, but it also brought on plenty of hardships, including financial hardships. If you find yourself struggling to pay your insurance premiums, you may have some options. Here’s what to do if you can’t afford your auto or home insurance premiums due to COVID-19.
Home Insurance
You’ll want to call your home insurance carrier if you are unable to pay your premium due to COVID-19. Many home insurance carriers are extending grace periods, not charging late fees and not canceling policies for unpaid premiums. While home insurance coverage is not required by law, your mortgage lender most likely requires it—so cancelling your home insurance is likely not a favored option. If you’re still unable to pay the homeowners insurance premiums after the grace period, an option to consider is to reduce your coverage.
Auto Insurance
The first thing you should do if you find yourself unable to pay your auto insurance premiums is to reach out to your insurance carrier. You’ll want to explain your situation to your carrier and see if they can provide any form of relief. Many auto insurance carriers have offered partial premium refunds due to the pandemic.
Four Things To-Do if You Can’t Afford Your Car or Home Insurance
Whether you can’t pay your premiums due to COVID-19 or are looking for ways to save money, there are a few discount opportunities to consider:
Save Money By Bundling Your Insurance
Bundling is one of the easiest ways to save money on your home and auto insurance. By going through one carrier for both your home and auto insurance, you’ll likely save both time and money. Insurance companies that offer bundling options tend to give a discount on all of the policies included. When you work with one carrier, you have the chance to substantiate your loyalty, which down the road could provide you with even more opportunity for discounts.
Seek Out Available Insurance Discounts
When it comes to car insurance discounts, there are a few opportunities in which you could reduce your monthly premium. From affiliation discounts and student discounts to good driver discounts and telematics, you’ll want to see if you qualify for any of these discounts. For home insurance discounts, home improvements, being a non-smoker, association with certain groups, and home security measures could all provide opportunity for discounts.
Reduce Your Current Insurance Coverage
If you’re still unable to make payments after consulting with your carrier and exhausting all forms of relief, you may wonder how to reduce your car insurance or home insurance coverage.
For your car insurance, you may be able to drop optional coverages or you may consider only keeping the minimum amount of liability insurance coverage that is required by your state. For your home insurance coverage—at a minimum—you’ll want to have enough coverage to cover the cost of rebuilding your home in the event that it is destroyed. This coverage quiz can help give you an idea of how much coverage is right for you.
Shop Lower Insurance Rates with SelectQuote
SelectQuote can help you look at your current policy, understand what you hope to cover and find any opportunities for discounts. We can quickly compare coverage and rates from some of the most trusted home and auto insurance carriers in the nation and will help you find incentives or discounts to help you save money while keeping the coverage you need.
What happens if I stop paying my auto or home insurance premiums?
If you don’t pay your auto insurance or home insurance premiums without consulting with your carrier, your coverage will likely lapse and you could be left without coverage. If your car insurance coverage lapses, depending on where you live, it may be illegal to continue driving your car. If your home insurance coverage lapses, your home insurance carrier has the right to cancel your coverage, leaving your home and possessions vulnerable.
Find Affordable Auto Insurance and Home Insurance with SelectQuote
At SelectQuote, we’ll take the time to understand your situation and can shop coverage and prices from some of the most trusted insurance companies in just minutes. We can help you find reliable and affordable home and auto insurance to provide the protection you need at a price you can afford.
