Managing Money In A Crisis
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Can I get car insurance premium forgiveness during the coronavirus outbreak?
Extending your due date or lowering your premium may help during financial hardship.
Car insurance companies are opening the door for customers who need financial help, although most aren’t waiving or suspending premiums. Most companies also offer a grace period to notify you before canceling your policy. If you think you’re going to miss a payment, call your insurer to see if you can work out a plan.
What's in this guide?
Will my car insurance company let me skip a payment?
It depends. Most car insurance companies are taking customer’s requests for financial hardship on a case-by-case basis. In many instances, companies will let you extend your payment due date, but not every company is offering premium forgiveness.
State orders: California is one of the first states to order a 60-day grace period on payments for many types of insurance, including car policies. More states will likely follow as the world responds to COVID-19.
Learn how your insurance company is responding, including how to get in contact with a rep. We checked this information last on April 7, 2020.
| Company | Coronavirus response | Contact information |
|---|---|---|
| Allstate | Allstate is leading with multiple measures to help customers with their finances. The major insurer is:
| MyAccount login or mobile app Your local agent Call 877-810-2920 |
| American Family | The company is dedicated to protecting what you’ve worked hard for by:
| Log into your online account or app. Contact your local agent. For payment assistance, call 1-800-692-6326. |
| Auto-Owners | For those experiencing financial difficulty, customers can:
| Call 800-288-8740 |
| Erie | Erie understands the financial situation the COVID-19 pandemic has left customers in. On a case-by-case basis, the company may:
| For questions or financial options: Call customer service at 800-458-0811. |
| Farmers | This well-known auto insurer is taking multiple steps to help customers by:
| Call 888-327-6335. |
| Geico |
| Geico app or geico.com account Call 800-207-7847 |
| Liberty Mutual |
| Liberty Mutual app or online account Call 800-290-7933 Tweet @AskLiberty |
| Mercury | This reputable provider wants to help customers burdened by their finances at this time.
| Call 800-503-3724. Email customerservice@mercuryinsurance.com |
| Nationwide | Nationwide is taking steps to lessen the financial burden on its customers. On a case-by-case basis, it may:
| Your nationwide.com account Call 877-669-6877. |
| Progressive | This major company is committed to lessening the disruption from the COVID-19 virus to its customers’ lives. It’s:
| Chat through the Progressive app or online account Call 888-671-4405. |
| Root | Root understands customers’ financial hardship and is working on flexible payments based on each state’s coronavirus guidelines. Depending on your state, customers might be able to:
| Root app Call 866-980-9431 Email help@joinroot.com |
| State Farm | State Farm says it’s committed to helping customers during the coronavirus.
| Your local agent |
| Travelers | Travelers is committed to keeping top-quality, uninterrupted service. It is:
| Call 800-842-5075 |
| USAA | USAA says its mission is to care for members, especially during difficult times.
| Mobile app or usaa.com account Call 800-531-8722 |
Which car insurers are giving premium refunds?
How do I delay my car insurance premium?
To delay your car insurance payment, you can:
- Contact your insurance company. If your company has local agents, consider reaching out to the one closest to you. Companies may see more calls due to the coronavirus, so local agents may serve you more efficiently.
- Tell your insurer about your situation. Offer relevant details about how long you expect to have unpaid leave or whether you lost your job due to the coronavirus. Consider offering a plan that fits your situation, like a suggested extension date or lowered payment.
- Mark down your extension. Once you and your insurer come to an agreement, put the new premium due date on your calendar.
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What should I do if I can’t get a premium extension?
Even if your insurance company won’t work with your financial hardship situation, you can take a different route to lower your bill.
- Ask for a low-mileage discount. If you’re driving much less than usual, you could see if your insurance company will lower your premium with a low mileage discount.
- Shop for a lower premium. Shopping around for a cheaper car insurance policy can net you savings, especially when you’re looking to save money during a crisis. Take into account any life changes that might lead to a lower premium, such as a move or a change in occupation. Because you can expect long wait times if you’re switching by phone, shop for new quotes online until the pandemic lifts. Most major insurers offer an online or app-based quote and application process.
- Switch to pay-as-you-go insurance. Pay-as-you-go insurance companies offer steep discounts if you’re not driving much and you use safe driving habits. You’ll need to use an app or black box to track your driving behavior and mileage.
- Consider less coverage. If you think the risk of an accident is low enough, you could lower limits on your coverage or nix some coverage not required by your state. Liability coverage is an exception — consider keeping as much coverage as possible to pay for damage you cause to other people.
- Switch to a layup policy. Also known as a storage policy or comprehensive-only policy, some insurers let you buy minimal coverage if you plan to keep your car in storage and not drive at all for the next few months. Your insurer may require you to keep the car in storage at least 30 days. However, you can’t legally drive your car with a layup policy because it doesn’t hold liability insurance. Also, you may have to cancel your car’s registration with your state to avoid legal penalties and a registration suspension. This policy may not be allowed in every area, so contact your local DMV if you’re unsure.
How long are car insurance grace periods?
Most car insurance grace periods range from 10 to 20 days. This grace period allows a certain timeframe to pass before your car insurance company cancels your policy, leading to lapsed coverage.
The time period varies based on the insurance company and requirements in your state. You can typically find out your state’s grace period from the Department of Motor Vehicles or Department of Revenue website.
What happens if I can’t pay my insurance premiums?
If you expect to miss a car insurance payment, contact your insurance company right away. Many companies understand the economic downturn that’s happening during the coronavirus outbreak. Your insurer may work with you on an extension or to make payments manageable.
What to expect if you miss payments:
- You’ll get notified. Your car insurance company is required to notify you about canceling your policy. You may get notice by mail or email, stating the date your policy will be canceled.
- You’re still covered during the grace period. The grace period starts after the payment due date and gives you several days to make a payment. You may get charged a late fee even if you pay before the grace period ends.
- You may get force-placed insurance. If you’re financing your car, your lender probably requires that you keep full coverage car insurance. Your lender can legally put a forced-placed policy in place for you, requiring you to pay a steep premium for low coverage.
- Your insurance company can deny coverage. If you miss too many payments without talking to your insurer, the company can cancel your policy. You might have to shop for a high-risk insurer if your old company won’t reinstate coverage afterward.
How do I reinstate my car insurance policy?
If your car insurance lapses, some insurance companies will make an exception to reinstate your coverage. Reinstatement means your insurer will activate your old policy and backdate it, so you won’t have a coverage lapse on record.
You’ll have a better chance of getting reinstated if you call your insurance company soon after your coverage lapses. You will need to make a payment to reinstate your coverage.
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Bottom line
Many companies nationwide are offering grace through payment extensions during the coronavirus outbreak, including car insurance companies. But if payments still cost more than you’d like, you could switch car insurance policies if you can find a better rate elsewhere.
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