Covid-19 and Your Auto Insurance, How is it Effected?
Insurance companies are watching very closely and reacting as quick as possible to their insureds needs. What steps are they taking?
Most Insurance Carriers in the beginning of the pandemic were allowing insureds to defer to a later payment date. This was the initial step because most of the country has gone to a stay at home order. This was preventing millions of Americans from going to work and doing their jobs.
As the pandemic progressed and Insurance Carriers realized that this will last longer than originally anticipated and the full scope and ramifications of shutting down business and keeping people at home played out, most of the Carriers realized they needed to do more.
There are a lot of different measures and factors that go into developing what your insurance premium will be. One of the largest factors is exposure to risk, AKA driving on the road. With majority of people confined to their homes and not out on the roads were the rates assumed for this year going to be accurate? Were people paying the right amount considering we have all been confined for an extended period of time?
Most Insurance carriers have come with a solution of providing rebates and refunds for their insureds! This only makes sense in the scheme of paying for your exposure to risk. If you are driving less, you have less risk, which in return would pay less.
Different Insurance Carriers have had different approaches to how they come up with the amount that is being rebated or refunded to their Insureds. Some companies are providing a flat dollar amount refund. Some are doing a percentage of premium. This can be huge for families across the country as millions lose their jobs and are uncertain about their futures.
Has your Insurance Company provided a refund or are they planning too? If you have Insurance through Gilles Smith Purdum we can help you find out. A lot of companies have already announced their plans while some are still deciding on the most effective way to assist.
Give us a call at 614-878-0240 and we can answer all your questions!
Blog by GSP Insurance Agency, LLC