COVID-19 has been impacting just about every aspect of our lives, and the far-reaching effects of the pandemic could influence your insurance. Millions have been left unemployed and many are anticipating a recession. Given these circumstances, many people are seeking ways to lower their expenses.

You may be wondering whether your insurance policies cover pandemics. What effects will COVID-19 have on your existing insurance policies? Should you cancel some of your insurance policies to save money during this time? To make smart financial decisions during COVID-19, you should know how the pandemic could potentially impact your insurance policies.

How COVID-19 Impacts Car Insurance

Because of COVID-19, car insurance could be impacted as many have begun working from home and spending significantly less time on the road. Does working from home lower car insurance costs?

Many Americans spend more than $1,000 a year on auto insurance. This may seem like a small fortune while you are unemployed or working from home and rarely using your vehicle. Since you are driving less, can you negotiate a lower insurance rate? If you are currently working from home, a car insurance discount may be available to you.

1. Low-Mileage Car Insurance Discounts

If you drive infrequently and put few miles on your car, your auto insurance provider may offer you a lower insurance rate. Someone who drives less will have a lower risk of being in an accident, which reduces the risk that the insurance provider will need to pay for a claim.

Discounts can vary between insurance carriers. You may need to obtain proof of your mileage, such as by downloading an app or inserting an electronic device into your car that transmits this information. American drivers accumulate an average of 13,476 miles per year. If you put significantly fewer miles on your car, you may qualify for a discount that lowers your premium. Further, some insurance providers offer special low-mileage programs that can lead to even lower rates.

2. Pay-Per-Mile Car Insurance

You may also be able to lower your rate through pay-per-mile car insurance. For this insurance option, you buy comprehensive and collision coverage and receive a rate that is based on the number of miles you drive. With pay-per-mile insurance, your rate may change month to month depending on how many miles you drive.

Pay-per-mile auto insurance is not as widespread as low-mileage discounts, so you may need to contact your insurance agent to determine whether it is an option available to you.

3. Lowering Your Car Insurance Rate If You Work From Home

Though you may be tempted to drop your car insurance altogether if you are working from home, you still need coverage. Driving without being properly insured can cost you much more in the long run. But, you may be able to lower your rate.

A car insurance rate is determined by several factors, including:

• Where you live
• Your driving history
• The vehicle you drive
• The length of your commute

When you no longer have a commute, you can contact your insurance carrier and ask about low-mileage discounts to negotiate a lower rate.

4. Lowering Your Auto Insurance Rate If You Are Unemployed

If you have become unemployed as a result of COVID-19, you are likely looking for places in your budget where you can cut costs. One of the expenses you may be able to reduce is your car insurance rate. Social distancing and stay-at-home orders have led to many Americans driving infrequently.

Speak with your insurance agent to ask if your car insurance rate can be temporarily reduced while you look for work. You may also want to search for a job that allows you to work from home so you can keep your lower rate.

How COVID-19 Impacts Homeowner’s Insurance

Does coronavirus impact home insurance rates? Due to COVID-19, home insurance can be affected — though likely not as much as other insurance sectors. While staying home more may decrease the risk of theft, it can also increase the risk of household accidents and kitchen fires. If you are suffering financial hardship as a result of COVID-19, your home insurance provider may offer a flexible payment option.

1. How Home Insurance for Homebuyers Is Affected

If you are not a homeowner but you are looking to purchase a home, now may be an ideal time to apply for a mortgage, as interest rates are at a historically low rate. If you have good job security, you may want to buy a home and obtain homeowner’s insurance to protect your new asset. Fortunately, the pandemic should not impact your ability to obtain home insurance or negotiate for a lower rate on your current policy.

To accommodate borrowers, many loan servicers and lenders are offering payment extensions and suspensions. If you are currently looking for home insurance, but you are worried you cannot afford the premium you are quoted, don’t let this deter you. You can still speak with an insurance agent and ask about payment accommodations for Americans affected by the pandemic.

2. How Current Home Insurance Policies Are Impacted

Though property coverages will likely not be impacted, you may want to obtain additional liability coverage if you are working from home or your children are staying home from school.

If you have home-sharing coverage for a rental property or a room you are not currently able to rent out due to COVID-19, you may want to pause this coverage so you do not have to pay for a policy you are not using. Speak to your insurance provider to request a pause on this coverage.

How homeowner’s insurance carriers respond to the pandemic will vary from carrier to carrier, but you may be able to expect the following changes and accommodations:

• Pauses in inspections: You may be able to expect a temporary pause in exterior and interior inspections.
• Possible delays: Many of those working for your insurance carrier may be working remotely. Call centers should remain fully operational, though there may be delays in claims.
• More time for home improvements: Your insurance provider may award you a greater amount of time to make improvements to your home if these repairs are necessary to keep your policy active.
• Flexibility for coverage lapses: If your home insurance policy lapses, your carrier may be willing to work with you by creating a payment plan or waiving the reinstatement fee if you are unable to make your policy payment because of the coronavirus.

3. Does Home Insurance Cover Working From Home?

As a result of COVID-19, many Americans are working from home. Whether your home insurance extends to work activities that occur in your home depends on your circumstances.

For business-related property, home insurance generally provides limited coverage only. It’s likely a fraction of your personal property that is used for business will be covered under your home insurance policy. For example, if your laptop is damaged, this may be covered. If you brought a lot of work equipment to your home and it becomes damaged or gets stolen, this may be an expense you need to cover out-of-pocket.

How COVID-19 Impacts Life Insurance

A life insurance policy can ensure financial stability for your family after you die. In light of the coronavirus pandemic, you may be wondering — does life insurance cover pandemics? Many Americans are worried about worst-case scenarios during COVID-19, and you may be wondering whether your loved ones will be financially protected if something happens to you.

1. Is COVID-19 Covered in Life Insurance Plans?

If you die as a result of COVID-19, your beneficiaries will receive the death benefit from your life insurance policy — even if you traveled to a location with a known coronavirus outbreak. The only exception is if you have been approved for life insurance recently and you did not disclose information about your exposure to the coronavirus or your travels on your application.

If you have life insurance, coronavirus may have little to no impact on your policy. If you become sick with COVID-19, your life insurance provider may not raise your premium as long as you continue making your payments on time.

2. What Happens If You Cannot Pay Your Premium?

If you are concerned that you will not be able to pay your monthly premium, you should contact your insurance provider to ask about a grace period. If you make your payment before the grace period ends, your policy will not be impacted. Your policy may be voided if you do not pay your premium after the grace period ends unless you can prove financial hardship related to COVID-19.

Some insurance carriers are extending their grace periods, and some state regulators are mandating extensions to grace periods. You can also discuss other options with your insurance provider, such as reducing your coverage or changing when you need to make payments.

3. How Has COVID-19 Impacted the Ability to Get Life Insurance Coverage?

During COVID-19, life insurance can still be obtained if you do not currently have coverage. The main impact COVID-19 is likely to have is that it may take longer for you to be approved for a policy. If you are in good health at the time of your application, there should not be any reason to be concerned.

Traveling to a country with a large number of COVID-19 cases may also delay your approval. The company may suspend your application and request a statement of good health. However, even if you test positive for COVID-19, you can still obtain life insurance. Some insurance companies may reject applications from those infected with the virus, but others may still approve applications from those with COVID-19.

If you are applying for life insurance during the pandemic, you can expect delays due to many business operations being conducted from the home. If you have recently traveled or have future travel plans, this may also delay your approval.

Your approval may also be delayed due to the need for a medical exam. For most life insurance applications, medical exams are required. As some medical offices may be closed or operating during limited hours, you may experience delays in receiving a medical exam and patient records. Currently, rates for life insurance have not been impacted by COVID-19, though this may change in the future.

No matter your circumstances, it is essential that you are completely honest on your life insurance application. If you are not honest, your beneficiaries may not receive your death benefit if something happens to you.

How COVID-19 Impacts Business Insurance

During COVID-19, business insurance may be more important than ever. For many businesses, the pandemic has presented confusing challenges, but business owners are known for their determination and resilience. With business insurance, you can protect your hard work and income. But does business insurance cover pandemics? If so, does business insurance cover COVID-19?

Unfortunately, your business insurance policy may not cover all COVID-19 disruptions. Coverage will need to be explicitly stated in your policy. If you are unsure whether your business will cover COVID-19, reach out to your business insurance provider.

1. Will Business Interruptions Due to COVID-19 Be Covered?

Your policy is likely to cover business interruptions. Business interruption coverage typically pays for losses that are caused by direct physical loss or as a result of damage to property due to fires, hurricanes, theft or wind damage.

Is business interruption coverage likely to cover interruptions due to shutdowns, employees getting sick or moving your business from an office to your home? If an event is not listed on your policy, it may not be covered. An interruption may also need to occur for a certain amount of time to be covered. However, if your policy covers incidents triggered by pandemics, this can mean that interruptions caused directly by COVID-19 may be covered.

Regardless of whether you know your interruption is covered or not, you may still want to file a business interruption claim online. The outcome of each claim will depend on the specifics of your situation.

2. What If You Need to Renew Your Business Insurance Policy or Buy a Policy?

If you need to renew your business insurance policy, you should be able to do so easily online. If you have been affected by COVID-19, you can contact your insurance agent about the options available to you.

If you do not currently have a business insurance policy, you may still be able to obtain coverage for business interruptions due to COVID-19.

Protect Yourself With Insurance Policies From Strock Insurance

Strock Insurance is the best local insurance provider in Central Pennsylvania. Since 1983, we have been providing insurance coverage to customers in Harrisburg, Camp Hill and Lebanon. Our independent insurance agency is locally owned and operated, and we provide exceptional customer service and personalized services to each of our customers.

We serve more than 10,000 customers and also represent the Erie Insurance Group. As an independent agency, we can provide our customers with the best available insurance coverage and the most competitive prices. To learn more about your insurance policy options, contact us at Strock Insurance.