Finances are even tighter than usual for many people at the moment due to the pandemic. You may feel they need to take drastic measures just to keep afloat and insurance may not be high on your list of priorities.
Luckily, you have options if you find you can’t pay your insurance at this time. Instead of cancelling your insurance, consider this.
Flexibility in Insurance
Governor Gina Raimondo has asked insurers to be more flexible during these troubled times. Chances are we can help find a solution.
Many providers are offering grace periods for payments, extended due dates, or flexible payment plans. They may also waive late fees and penalties and may have paused policy cancellations due to non-payment.
Gov. Gina Raimondo’s stay at home order probably means you are driving less often, but you may still need your vehicle. You can’t drive uninsured, but it may be a struggle to pay your auto insurance premiums. Fortunately, you have options.
Most of the biggest auto insurers are providing a partial premium refund to customers during the pandemic of up to 25 percent, depending on the company.
Alternatively, you may be able to reduce your coverage. While this isn’t the best option, it may offer some relief. However, it isn’t always possible as lenders and leasing companies may require comprehensive and collision insurance.
If you aren’t driving at all and you don’t have to answer to a lender or leasing company, you may have additional options. You can maintain comprehensive coverage and store your vehicle. Alternatively, your insurer may allow you to suspend your coverage.
Cancelling coverage should always be your last option as it could lead to higher rates once you need to insure your vehicle again.
Homeowners, Condo & Renters Insurance
Once again, many of the largest insurance companies have extended grace periods, eliminated late fees and penalties, and won’t cancel your coverage. If you find that you still can’t pay after the grace period, your insurance agent can provide you with expert advice.
If you have a mortgage, you can’t cancel your homeowners insurance or condo insurance policy as it is required by the lender. Even if you do not have a mortgage and live in a condo, your HOA probably requires it so, cancellation may not be an option.
If you own your home outright, consider the consequences of cancelling your insurance coverage. If you experience a loss, it will drastically affect your finances and possibly your future. Reducing coverage isn’t optimal either, but it is far better than no coverage at all.
The pandemic has caused the closure of many businesses on Rhode Island and caused great economic hardships. Luckily, since we’ve entered Phase 2 many are now re-opening, but at a much lower capacity.
As a result, your business may still be struggling to meet your financial obligations. Luckily, your company may be able to take advantage of extended grace periods and flexible payment plans, all without late fees and penalties.
Let us help you. We’ll provide you with unbiased, expert advice and we’re here to support you during these difficult times. We can get through this when we work together. We’ll come out of this stronger than ever.