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Your Guide to Auto Insurance in a Pandemic

By Thomas Dube posted 02-17-2021 04:14 AM

  

When you buy a vehicle, the next thing you need is auto insurance. It may seem overwhelming when you first start to look at it, but you can't neglect car insurance. Having protection when you're on the road is a part of being a good citizen.


The COVID-19 pandemic has changed insurance, but it hasn't changed the fact that you need it. Visit the blog to find out more about your insurance needs.

How does car insurance work?

Car insurance works by protecting you from financial liability of damage you caused to another car if you are in an accident. Depending on your policy, you may also be covered for  vehicle damage, theft, vandalism, and weather events.


There are various types of car insurance you can get to meet your individual needs. Different policies cover different situations which may or may not apply to you. It's important to speak with your chosen provider to determine your needs.  Ideally,  you should acquire an insurance broker to help determine the best policy for you.


Several characteristics will help the company you choose to determine your insurance rates. These include your driving history, make and model of your car, and even your age. Your policy rate may change if you get a new car, reach accident-free milestones, or get older. When you pay off your vehicle, you're likely to see a drop in your rates. Still, it's crucial to keep in mind that older cars have more expensive policies.

The Benefits of Car Insurance

The personal benefit of having car insurance is the peace of mind that comes with knowing you took steps to protect yourself on the road. Whether you're in an accident through no fault of your own, your car is stolen, vandalized, or damaged by weather events; you're covered. 


The main reason for having auto insurance is that it's the law. Depending on where you live, there will be a minimum amount of coverage you're legally required to have. You're required to have proof of insurance in your car at all times and must provide it to law enforcement if asked. Not doing so may result in a fine.


If you're in an accident and don't have coverage, you could face criminal charges if someone else is injured or killed. Having auto coverage and carrying the proof with you when you're out on the road is the best way you can protect yourself and others.

The Impact of COVID-19

The pandemic has changed nearly everything about ordinary life, and auto insurance is no exception. This is not to say that you don't need any coverage. But if you find yourself driving less, you may be able to save a bit of money by switching to a plan based on your mileage


You might think with fewer vehicles on the road there's less likelihood that you'll file a claim, so you'll see lower rates. This isn't entirely accurate. While there are few cars on the road, many motorists have been speeding more, making the streets more dangerous.


The best way to save on insurance is to call your provider and ask. Many companies are offering rebates, discounts, and payment plans to retain customers. Contacting your provider will allow you to ensure you are receiving any available benefits.


If your provider isn't offering any pandemic relief options, consider changing providers. There are many insurance providers, and with a little research, you can find one to fit your needs. Visit the blog for tips and tricks for navigating all of your insurance questions.

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