If you’re being a smart and responsible Michigander and are complying with Governor Whitmer’s “Stay Home, Stay Safe Order,” you’re not using your car very much. Shouldn’t you get a break on your car insurance?
Thankfully, most major auto insurers are saying “yes.”
That’s because we are staying indoors and staying off the roads: Farmers Insurance reported a 58% decrease in miles driven in the week of March 29th to April 4th from the previous week.
Some states have already issued leniency guidelines, and auto carriers have indicated that they’ll adjust their timelines to either meet or exceed state-specific requirements. Many big car insurance companies are helping Michigan residents during the COVID-19 pandemic by providing some percentage discounts on car insurance premiums.
In addition to driving less, many Michigan residents staying at home may be working less or have been laid off. Many are suffering financial hardship during the COVID-19 pandemic and may have difficulty paying their insurance premiums or filing claims on time. To help ease the burden, several big auto insurers have announced they will provide discounts to their customers for April and May. Only one major auto insurance company is providing a one-time check in a set dollar amount (American Family Insurance Company).
Also, in Michigan, the State Department of Insurance and Financial Services “strongly encourages insurers to provide their insureds with at least a 60-day grace period to pay insurance premiums so that insurance policies are not cancelled for nonpayment of premium.” This recommendation from the State asks that “regardless of the line of coverage,” insurers “consider flexibility” to help Michigan’s insureds avoid financial issues if they are unable to pay insurance premiums or file claims on time. The Director requests insurance companies make adjustments to claim filing deadlines for those who may have difficulty in providing timely notice of their claim. So, there’s some good news for paying your car insurance.
The state’s Bulletin 2020-16-INS concerning Insurer Flexibility Due to COVID-19 is found here: https://www.michigan.gov/documents/difs/Bulletin_2020-16-INS_686902_7.pdf
Most major auto insurance companies (and perhaps some of the minor ones) are recognizing that Michigan residents are staying inside and not driving. Because of that, and to reduce some of the financial hit in the pandemic, many are automatically providing a rebate on your car insurance. Here’s a list of major insurance carriers and a link to their coronavirus policies:
Check the website for your car insurance company and review any specific requirements or limitations.
As a reminder, don’t think about canceling your auto insurance altogether. That could be an expensive mistake that could result in serious financial and legal consequences. We have enough to worry about right now, so just enjoy the rebate and Stay Home, Stay Safe, so we can get back on the roads when it’s okay to do so.