Coronavirus has created an economic crisis here in Massachusetts and across the country. Many Americans are looking for ways to reduce expenses during this difficult time. If you’re wondering whether changing auto insurance due to Coronavirus is a good idea, this information may help.
Auto insurance is required in the state of Massachusetts. However, there are a few changes that can reduce your premium. First, you can increase your deductible. Secondly, you can reduce coverage limits, so long as you retain the minimum coverage required by Massachusetts law. You can even remove any optional coverages in your policy. These are all better options than cancelling your policy entirely.
Warnings About Changing Auto Insurance Due to Coronavirus
It’s important to note that you will be increasing your risk if you do get into an accident. A higher deductible means you’ll pay more out-of-pocket for any claims. Reduced or removed coverages will leave you at-risk for damages and claims in those categories. You should take caution when making any such changes to your policy, especially if you continue to use your car regularly. Before removing or reducing coverage, talk to your independent insurance agent about other ways to reduce your premiums. For instance, are you taking advantage of all possible discounts, such as bundled policies for home and auto.
Disadvantage of a Lapse in Coverage
If you cannot afford your insurance due to loss of employment or illness from Coronavirus and must cancel your policy, be aware of a few things. First, some companies may impose cancellation fees. Additionally, when you sign up for a new policy in the future, you are not guaranteed the same rate. Unfortunately, cancellations can have negative consequences. Discuss the situation with your insurance company beforehand. There may be special programs available to assist with those impacted by Coronavirus.
We understand that these are difficult times and you may be forced to make some tough decisions. Whether it be your insurance company, mortgage lender, or credit card company, it’s better to contact them before missing a payment. We hope the above information on changing auto insurance due to Coronavirus is helpful. Please contact us for further information and assistance with your Massachusetts auto insurance policy.