COVID-19 brought about a variety of challenges, including financial circumstances that may have prevented you from paying for your insurance coverage. Many lenders and insurance companies were offering payment pauses or other types of assistance during the COVID-19 pandemic. While the pandemic may be behind us, if you find yourself struggling to pay your insurance premiums, you may have some options. In this article, we’ll explore the steps you can take if current financial challenges make it difficult to pay your premiums so you understand the options available to you.
How to Handle Being Unable to Pay Your Home Insurance Premiums
If you were unable to pay your premium due to COVID-19, you may already be aware that the first step you should take in these circumstances is to call your home insurance carrier. Many home insurance carriers extend grace periods, avoid charging late fees, and don’t cancel policies for unpaid premiums in certain circumstances. While home insurance coverage is not required by law, your mortgage lender most likely requires it—so you’ll want to avoid canceling your policy. If you’re still unable to pay the homeowners insurance premiums after the grace period, you may consider reducing your coverage to make premium payments more manageable. While this isn’t ideal because it puts you at risk of not having enough coverage, some coverage is better than none, and you can always increase the coverage once your financial situation improves.
How to Handle Being Unable to Pay Your Auto Insurance Premiums
The first thing you should do if you find yourself unable to pay your auto insurance premiums is to reach out to your insurance carrier. You’ll want to explain your situation to your carrier and see if they can provide any form of relief. Many auto insurance companies offer assistance programs or flexible payment options for policyholders facing temporary financial hardships. They may be able to offer solutions such as adjusting your payment schedule or exploring alternative payment arrangements to help you manage your premiums.
Four Things To Do if You Can’t Afford Your Car or Home Insurance
Whether you can’t pay your premiums because of challenging financial circumstances or are looking for ways to save money, there are a few discount opportunities to consider:
1. Save Money By Bundling Your Insurance
Bundling is one of the easiest ways to save money on your home and auto insurance. By going through one carrier for both your home and auto insurance, you’ll likely save both time and money. Insurance companies that offer bundling options tend to give a discount on all of the policies included. When you work with one carrier, you have the chance to substantiate your loyalty, which down the road, could provide you with even more opportunities for discounts. Working with an insurance brokerage like SelectQuote makes it easy to review your bundling options all in one place and find the policies and carriers that are right for you.
2. Seek Out Available Insurance Discounts
When it comes to car insurance discounts, there are a few opportunities to reduce your monthly premium. From affiliation discounts and student discounts to good driver discounts and telematics, you’ll want to see if you qualify for any of these discounts. Home improvements, being a non-smoker, association with certain groups, and home security measures could all provide opportunities for home insurance discounts.
3. Reduce Your Current Insurance Coverage
If you’re still unable to make payments after consulting with your carrier and exhausting all forms of relief, you may wonder how to reduce your car insurance or home insurance coverage.
For your car insurance, you may be able to drop optional coverages or you may consider only keeping the minimum amount of liability insurance coverage that is required by your state. For your home insurance coverage—at a minimum—you’ll want to have enough coverage to cover the cost of rebuilding your home in the event that it is destroyed. This coverage quiz can help give you an idea of how much coverage is right for you.
4. Shop Lower Insurance Rates with SelectQuote
SelectQuote can help you look at your current policy, understand what you hope to cover, and find any opportunities for discounts. We can quickly compare coverage and rates from some of the most trusted home and auto insurance carriers in the nation and will help you find incentives or discounts to help you save money while keeping the coverage you need.
What happens if I stop paying my auto or home insurance premiums?
Several consequences can occur if you stop paying your auto or home insurance premiums, potentially leading to financial, legal, and coverage-related implications. If your car insurance coverage lapses, depending on where you live, it may be illegal to continue driving your vehicle, and you could face legal penalties if you get behind the wheel. Similarly, if you have a mortgage on your home, your lender likely requires you to maintain homeowners insurance as a condition of the loan. Failing to do so could violate the terms of your mortgage agreement.
Find Affordable Auto Insurance and Home Insurance with SelectQuote
If you’re looking for ways to save on home and auto insurance, SelectQuote can help. With nearly 40 years of industry experience, our licensed insurance agents will take the time to understand your budget and unique situation and help you review your coverage options. In just minutes, they can provide you with unbiased quotes from several of the most highly trusted insurance carriers in the nation. Our licensed insurance agents will help you make informed decisions and find maximum savings when it comes to your home and auto policies.
