It's been almost a year since the COVID-19 was declared a pandemic. The entire situation has disrupted every aspect of our daily lives, regardless of where we are in the world. This includes how we use and manage our cars, especially when it comes to car insurance.
Most people have many other concerns on their mind, though some may have started wondering about what happens to their car insurance during the COVID-19 pandemic. If you’re one of those people, you’ve come to the right place.
Your Car Insurance & COVID-19
Before we begin, bear in mind that many of these questions and answers may change over time. The pandemic, even a year later, is still a developing issue. Just like everyone else, insurance companies are also figuring out how to react to the new challenges they face, as well as the unique needs of their customers.
Let’s get to it and see what we can clear up.
First Things First
Before we get to the FAQs, the most important thing for you to remember is that your insurance company is the best place to direct any of your questions. There is no one-size-fits-all reaction for insurance companies, so each of them decides for themselves how they’re going to help their customers during this pandemic.
With that in mind, the best authority to answer questions on your insurance policy would be the insurance company themselves.
Don’t be shy! Call their hotline and have your concerns clarified. Alternatively, you can check their websites and any other communication channels they send out to find out what they’re offering you during the pandemic.
Frequently Asked Questions on Car Insurance and COVID-19
Now, let’s address a few common questions about auto insurance during the time of the COVID-19 pandemic.
Can I pause my car insurance premium payments during coronavirus?
Like many other people, you may be wondering if you can pause your car insurance premium payments during the pandemic. Typically, people ask this question because they realise that they're not driving as much as they used to if at all.
Typically, insurance companies do not practice pausing insurance premium payments. You might see that in other industries, as you would with your gym membership payments, but that usually doesn’t happen with auto insurance.
With that said, I still recommend that you check with your insurance company. The reason is that many companies are coming up with creative ways to give their customers some form of financial relief, like discounts, special rates, or some value-add to make the existing policy better.
Can I still get roadside assistance if I need it during the pandemic?
Yes! Insurance companies are still providing roadside assistance to customers who need it. There may be minor changes to how they go about doing that (like stricter Standard Operating Procedures or SOPs), but generally speaking, you’re still going to get the help that you’ve paid for.
Can I pay less for car insurance since I’m driving less during the pandemic?
Sadly, no. Again, as mentioned above, individual insurance companies may decide to give you some special offer during the pandemic. Generally, though, the price you pay for your insurance coverage doesn't take into account whether you drive more or less.
Here’s a good alternative that you might be interested in, though. If you believe that you’ll be driving a lot less for the foreseeable future, you can always check out the pay-as-you-drive type of car insurance.
Several insurance companies in Australia offer this type of auto insurance where you only pay based on your mileage. You can also think of this as no-frills car insurance, where you can pick and choose what you want in your insurance policy.
Suppose you drive a lot less and rely more on other forms of transportation. Then you can pay less for car insurance with a pay-as-you-drive insurance policy.
If I get into an accident, can I still file a claim and get my car fixed?
Yes, of course. You pay an insurance premium so that you’ll have financial protection in the case of a car accident. Auto insurance companies will still help you file claims and get your car fixed if you get into a car accident.
Just as with roadside assistance, there might be changes to the process. Some insurance offices might be closed, or might have different operating hours. Whatever the case may be, the insurance company is still there to serve you.
Here’s a tip, though. If you’re concerned about filing a claim and getting your car repaired during the pandemic, check out their website. There, you can find out if there are any updates about the claims and repair processes.
Could I save money by insuring only one of my cars?
Suppose you have multiple cars at home, and you only rely on one these days. It might be tempting to assume that you won’t need to buy insurance for the other car(s) in your driveway. But that’s not a good idea, and I’ll tell you why.
Always remember that car insurance doesn’t just cover you in the case of an accident. Most policies also protect against theft, fire, and other kinds of disasters. You don’t want to be in a situation where your uninsured car gets stolen or burned, because you’ll have to pay to replace or fix it all by yourself.
Even if a car is just sitting in your driveway rarely driven, you’ll still want the peace of mind that comes from protecting it with insurance.
Learn More; Read More from Carpart.com.au
To find out more about car insurance and COVID-19 among many other topics, check out the blog at Carpart.com.au. There, you’ll read new articles on what’s going on in the automotive world in Australia and beyond, covering topics like car insurance and so much more.
By Ray Hasbollah