COVID-19 And Your Auto Policy:

The spread of the SARS-COV-2, popularly known as the COVID-19, has had a devastating impact on the US economy. When it comes to auto insurance premiums however, this calamity is prompting insurance companies to provide relief to their customers. The reason behind this trend is simple, fewer cars on the roads. Recent restrictions on travel across the fifty states, along with orders to shelter in place, have led to fewer drivers on the nation’s streets and highways. This translates to fewer accidents, allowing insurance companies to provide discounts to their customers.

For instance, GEICO Insurance recently sent out an email letting its auto and motorcycle customers know to expect a 15 percent credit between April and October. The good news is that the credit will also apply to new policies purchased during this period. GEICO further announced the pausing on the cancellation of policies due to non-payment through the end of April 2020 and likely beyond. 

Farmers Insurance made a similar announcement recently letting customers know “Farmers is ready to support you during the COVID-19 crisis.” For its part, Farmers announced that it is “reducing certain personal auto premiums by 25 percent for April, and 15 percent for the month of May.”  Farmers even stated that it’s personal auto insurance policyholders in New York will receive “a single credit equal to 40 percent of one month’s premium based on full-term premiums as of May 2020.” Allstate, Liberty Mutual, and many other auto insurance companies have made similar pledges in addition to flexible payment options for existing customers. As mentioned earlier, some insurance companies have pledged to provide these discounts to new customers.

Although Americans face numerous uncertainties during this global pandemic, auto insurance is one of the few bright spots. Although we recommend clients do their homework to find the best deals, now is the perfect time for the uninsured to take the plunge.

If you have been involved in an auto accident and need someone on your side, contact our Sherman Oaks law office. As a prospective claimant, you may experience challenges between you and your auto policy. One of our highly qualified auto accident attorneys will be able to make sure you get the best possible outcome.