It’s a great time for drivers to take a look at their car insurance and shop around with an independent agent. That’s because there are a lot of companies offering reduced rates and other benefits due to the ongoing economic uncertainty. From reduced rates to deferred payments, here are some of the best reasons to consider your liability insurance options right now.
Less Driving = Fewer Accidents
As the State of Wisconsin moves to lift restrictions from the economic lockdowns, many car insurance companies are offering reduced rates to motorists. The shelter-in-place orders have resulted in far fewer motorists on the roads and a lot fewer miles being racked up on odometers. The big reduction in cars on the road means there’s a reduced risk of you being in an accident. As a result, many companies’ rates are reflecting that by reducing insurance premiums. Some companies are even offering refunds on premiums. So, if you’ve been paying your regular rate while driving a lot fewer miles each week, you may have some money coming back to you.
Deferred Billing if You Can’t Pay Now
Many insurance companies understand if clients are facing economic uncertainty or hardships right now. None of us asked for this situation that was forced upon us. Just because you may not be able to pay for your car insurance right now — or might not be able to pay the full amount — does not necessarily mean that you will lose your car insurance.
Many companies, for example, will allow you to defer your insurance payments until a later date. Others will let you pay a portion of your monthly premium if you’re able while deferring the rest. The important thing to remember is that deferred payments will still be owed in full at a later date. While it may still be difficult, this is a much better option than letting your insurance lapse.
When your deferred billing does come due, you’ll have to decide between three options if you are still struggling economically:
- Let your insurance lapse
- Reduce your coverage amounts to reduce payments
- Increase your deductible on your car insurance
The Best Option: A Higher Deductible
Your best option by far in handling deferred payments is to increase your deductible. This is the amount you’ll have to pay out-of-pocket after an accident, before the insurance company coverages will apply. Letting your insurance lapse is not a good option, because it will make it your insurance rates go up in the future when you become more financially stable. Reducing your coverage amounts isn’t a great idea either, because Wisconsin is an at-fault state. If you are at-fault in an accident and don’t have enough coverage to pay for damages to someone else’ vehicle, you are still financially liable for it.
One More Thing: Uninsured/Underinsured Motorists
As the economic uncertainty from the shutdowns continues for the next few months, a lot of people are unfortunately going to have to let their car insurance lapse in Madison. We may suddenly find ourselves with a big increase in the number of uninsured or under-insured motorists on the road. That’s why you should strongly consider looking at your UI/UIM coverage amounts now – before that happens.
What is UI and UIM? Uninsured and underinsured motorist coverage helps pay your damages and medical bills if another driver causes an accident that injures you. If they don’t have any car insurance at all, or their coverage amounts are too low (underinsured), you could be financially devasted by an accident that wasn’t your fault. Your UI/UIM coverage amounts are an added layer of protection for you and your family in these uncertain times.
Call Homewood Insurance for a Free Quote
If you have any questions about your car insurance or want to take advantage of some of the rate reductions taking place right now, there’s never been a better time to contact Homewood Insurance Agency. You can reach our Madison office at (608) 442-6666, or in Sun Prairie at (608) 837-3611.
