Your car insurance policy may help you make ends meet

Your car insurance policy may help you make ends meet

LOUISVILLE, Ky. (WAVE) - Every penny counts now more than ever.

As many families struggle to make ends meet there is something many can honk their horns about: Some automobile insurance companies are offering refunds, credits and delayed or flexible payments without penalties because of the coronavirus.

If it sounds too good to be true, it is because the rates are based on normal conditions, though nothing is normal as families struggle through the COVID-19 outbreak.

With shelter in place and stay home to stay healthy orders in place, Kentucky and Indiana city and suburban roads are less traveled. With less traffic, comes less of a danger on the roads. Many insurance companies have not only noticed fewer cars and dangers on the road, but they have recalculated bills because of it.

According to Car and Driver, Allstate will refund more than $600 million back to its policy holders, offering approximately 15 percent credit on premiums. They are also offering free identity theft protection to customers through the end of the year as scams and thefts have increased during the pandemic.

GEICO will also offer a 15 percent credit on insurance policies that come up for renewal between now and October. They also pledged to temporarily pause policy cancellations due to non-payment and policy expiration. The pause will remain in effect through April 30, 2020.

Liberty Mutual is following suit by offering a 15 percent refund on premiums.

American Family’s COVID-19 premium relief plan is more straightforward and will be made up of one-time payments of $50 for each policy. The company will start the distribution of checks in Wisconsin first, where the company is headquartered.

Every insurance company is handling the economic stress for their policy holders due to this global pandemic in different ways, and not all insurance companies are participating. It might be the perfect time to shop around for new car insurance.

Remember: Do not cancel your coverage without a new policy in place.

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