How to Reduce Car Insurance Costs during the COVID-19 Pandemic

COVID – 19 has turned financial security as we know it on its head.

A lot of folks are seriously concerned about how they’ll get through this period financially unscathed.

Many motorists don’t have a clue on how to get their bills paid. To make matters worse, thousands have lost their jobs as a result of the pandemic.

One major channel for recourse in such an uncertain period is how to reduce insurance rates.

A lot of folks may think getting their auto policies discontinued is the best step. But no! It may be more costly when the pandemic is over.

But since you’re not heading out with your vehicle more often, try getting your premiums reduced. And if you’re lost on what helps to bring your premiums down, here’s all the info you need!

Follow these steps to ease your financial troubles in this challenging time;

Ask Your Auto Insurance Company for Financial Relief

Auto insurance providers are aware of their customers’ financial situation during this pandemic. Based on this, a host of these companies now have helpful alternatives to ease your premium payments. Here’re some of the most essential;


If you missed your premium payment, you can contact your policy provider to ignore regular additional fees.

Chances are you’ll receive a positive response during the pandemic.

Grace Periods

Keep this in mind. Since the pandemic took its toll on many jobs, auto policy providers have extended their grace periods.

So if you’ve missed a premium payment and think your provider has cancelled your auto cover, contact them now.

Some insurance companies offer two months of grace right now, and won’t cancel your policy even if you miss it.

Payment Plans & Delivery Coverage

A host of insurance firms have plans which make premium payments more flexible for their customers. Get in touch with your provider and work a plan out in your favor.

Ask Your Car Insurance Company for Discounts

When it comes to discounts, there’s a ton of choices capable of reducing your premium rates. Here’s a few discounts you can ask for from your provider should you qualify for them;

  • Good driver discount
  • Anti-theft discount
  • New vehicle discount
  • Car safety discount
  • Multi-vehicle discount, and more

Note that these policies may vary based on your location and driving history. So check out if you’re qualified before contacting your policy provider.

Ask For a Higher Deductible

A deductible refers to cash you’re expected to pay if an accident occurs. Since you’re less likely to get involved in an accident right now, consider choosing a plan with a higher deductible.

A policy with a higher deductible equates to having to pay lower premium rates.

But be careful though.

Choosing a plan with a higher deductible will significantly lower your claims should you make one.

Drop Optional Coverage

Optional coverage plans such as collision cover or comprehensive insurance could help save your auto cover. According to, you should drop this coverage on your car if your vehicle is already paid off or if your vehicle has a low actual cash value (ACV).”

Cutting off extra insurance options could significantly reduce the premiums you have to pay. Then check out how much you get as a payout should your car get involved in a crash.

Note that the maximum claims you can get on your totaled vehicle is its value less deductibles. So ensure you’ve not included your car in any loan/lease arrangement to keep your claims up.

Suspending Car Insurance

Getting your auto coverage suspended should be a last port of call in this pandemic. Since you’re at home, it’ll sound like a great option to remove some options from your policy.

You can suspend your collision cover or opt to limit your liability auto policy to the lowest state level. Before you do this, know there’re risks involved.

Relaxing total cover will bring you in direct contact with a high premium payment should you get involved in an accident.

And if your car gets stolen or damaged while parked in your residence, it could be difficult to get any cover.

Canceling Car Insurance

When you’ve looked through all the options, it’s a risk to think about cancelling your policy due to COVID – 19.

After the pandemic, you’d have an insurance gap to deal with. Such a gap will mean you’ve got to pay higher when life gets back to normal.

Don’t ever think auto insurance is a waste because your car is currently parked away. You’ll need that policy in the long-term to secure a better financial profile.

Final Word

It’s not easy to make financial decisions in this season. That’s why general insurance related to cars have been modified by several policy providers (check more here).

Make use of the info you’ve gotten, and ease your transition into the post-pandemic auto insurance industry.

Also note that some companies offer refunds on car insurance, so you can check out if it applies to you.

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