Why You Need Under/Uninsured Motorist Coverage Now More Than Ever
Updated: Feb 27
Since early March most of the country has been shut down due to Covid-19, which has taken a huge toll on the American economy. Millions of people have lost their jobs and have found themselves out of work. Naturally some individuals have been trying to find new ways to cut costs. Unfortunately, some people may look to reduce their car insurance premiums by requesting a less expensive plan or worse, fail to pay their premiums all together, allowing their policy to lapse.
Uninsured motorist coverage protects you if you're involved in an accident with an at-fault driver who doesn't carry liability insurance or if their liability limits are too low. Having UM coverage is especially vital to have in Florida since Florida has the highest percentage of uninsured drivers on the road, at over 27%. These numbers are expected to continue to rise due to driver’s failure to pay their policy. Here are some actions you can take in order to reduce your payments without sacrificing your coverage.
Coronavirus Auto Insurance Discounts
You should contact your insurance carrier to see if they are offering some type of discount due to the virus. Most of the major auto insurance carriers have announced “payback” plans for customers who are sheltering in place due to the COVID-19 pandemic and are no longer driving to and from work.
Allstate announced they will give customers 15 percent back based on their premiums for April and May. The funds will automatically be deposited back to the bank or credit card used for the customer’s most recent payment or apply credits to accounts.
GEICO offering credits of 15 percent of the customer’s next six-month policy term for all auto, motorcycle, and RV policyholders as the policies come up for renewal.
Liberty Mutual is giving personal auto insurance customers a 15 percent refund on two months of their auto insurance premium, based on the premium amount as of April 7, 2020. The refund will be issued in the manner customers made their most recent payment, or by check.
Progressive is giving personal auto policyholders a credit of 20 percent of their April or May premiums. The credit will be applied to any outstanding balance or next bill or refunded if the policy has already been paid in full. Commercial customers with a business owner or general liability policy will get a 20% credit on April and May monthly premiums.
State Farm is giving its auto insurance customers a credit of “about 25 percent” of their premium for March 20 to the end of May—exact percentages will vary by state. Customers will receive credits applied against bills beginning as early as June.
Travelers is giving personal auto insurance customers a 15 percent credit on April and May auto insurance premiums, rebated in the form of account credits.
USAA is giving every member with an auto insurance policy in effect as of March 31, 2020, a 20 percent credit on two months of premiums. The credit will automatically be applied to customers’ bills.
This week Governor Ron De Santis has signed an executive order allowing the partial reopening of Miami-Dade and Broward Counties. While this is good to begin the process of reviving the local economy, this means there will be more drivers on the road. Be sure to contact your auto insurance to inquire if they are offering discounted rates due to Covid-19 as well as making sure you have UM coverage.
The attorneys at Ferrer Law, PA have represented individuals with various injuries like back injuries, bicycle accident, brain injury, burn injury, car accident, catastrophic injury, dog bites, Lyft accident, medical malpractice, motorcycle accident, neck injury, negligence, negligent security, nursing home abuse, pedestrian accident, personal injury, premises liability, products liability, serious injuries, slip and fall, train accident, trip and fall, trucking accident, Uber accident, and wrongful death throughout Miami-Dade, Broward, and the rest of the state of Florida. If you or a loved one has been hurt due to an auto accident, call the Ferrer Law, PA, at 305-697-2224
for a free consultation.