Michigan Covid-19 Related Car Insurance Questions and Updates

Michigan Covid-19 Related Car Insurance Questions and Updates

Michigan is one of the states that has been most affected by the Covid-19 virus. With thousands of cases, and many in the state out of work, many Michigan residents are struggling financially. Paying for car insurance right now might be difficult. Fortunately, insurance carriers are stepping up to help drivers during these challenging times.

If you live in Michigan and pay for car insurance, you may be wondering what your options are during the coronavirus pandemic. The Stay-at-Home orders have left many out of work and unable to pay their car insurance premiums. Before you panic, contact your insurance agent. Most insurance carriers are offering options to help their customers.

Most insurance carriers are working with customers to provide options like payment plans, discounts or refunds on premiums, waiving late fees, or pausing cancellations temporarily to provide relief for customers affected by the Covid-19 virus.

What should you do if you can’t afford your monthly car insurance premium?

Call your agent. Your agent can direct you to the right contact number to call and provide you with up-to-date information on what your insurance carrier’s options are during the Covid-19 pandemic.

Can you delay your car insurance payment due to Coronavirus?

Speak with your agent if you can’t afford to pay your monthly premium due to layoffs or a Covid-19 related financial hardship. Most carriers are allowing you to adjust your payments. You won’t be able to just skip a payment, but you should be able to delay a payment. You may be able to delay your payment for a month or two, and then spread out the missed payment/s over the remaining months of your policy.

Can you delay an auto-payment?

Insurance carriers often provide discounts for setting up monthly e-billing and auto-payments. If you are set up with an auto-payment, you can still have your payment delayed. Call your agent or carrier to set up payment arrangements if you are unable to pay your premiums due to Covid-19.

Can you cancel your coverage temporarily?

You should not cancel your coverage. In Michigan you are required to have auto insurance on any registered vehicles. It’s also a bad idea to cancel your insurance coverage because a lapse in coverage can result in higher premiums later. Most companies are delaying cancellations due to non-payment during the Covid-19 pandemic, so you most likely won’t be cancelled for non-payment right now. If you do get a cancellation notice or you are unable to make a payment, call your agent.

Covid-19 Discounts, Refunds, and Credits

Some Car Insurance Carriers are issuing Discounts and Credits to Drivers
As there are less drivers on the roads, insurance companies are seeing fewer claims. Some carriers are returning the savings on claims to their customers in the form of discounts and refunds. Progressive, Safeco, and Grange have recently stepped up, offering customers credits on their premiums during the months of April and May. While not all auto insurance companies are offering discounts due to the coronavirus, the list continues to grow.

  • Progressive auto insurance -Progressive personal auto customers who have a policy in force as of April 30 will be credited 20% of their April premiums in May and personal auto customers with a policy in force as of May 31 will be credited 20% of their May premiums in June. (read more)
  • Safeco auto insurance – Safeco personal auto insurance customers will receive a 15% refund of two months of their annual auto premium as of April 7, 2020, pending regulatory approval. (read more)
  • Grange auto insurance – Grange Insurance has decided to return some premium to personal auto policyholders in the form of a 25% credit for the months of April and May. (read more)

What else can you do to reduce your premiums?

If you are struggling to pay your insurance premiums, now is a good time to review your coverage. Give us a call or contact us to review your policy and coverage.

We will continue to update you with information from carriers as it is provided to us. Please continue checking back with us for answers to your Covid-19 car insurance questions.

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