How You May Qualify For A Personal Auto Insurance Premium Refund
The COVID pandemic has changed the lives of millions of people forever. There are plenty of physical, psychological, and economic scars that people are dealing with. The pandemic also caused multiple lifestyle changes, with a reduction in driving due to professional or personal reasons being one such change. Auto insurers have taken notice. Here’s a look at how you may qualify for a premium refund.
- Potential Eligibility
You might qualify for a premium auto insurance refund if you had auto insurance during the time period when many states issued stay-at-home orders. These orders were announced throughout the country between April and May. Most carriers are offering over a 15% refund for your monthly premiums because of the mandate, which led to a reduction in driving. The refund can assist those who lost their jobs during the pandemic or were struggling to make ends meet. In order to help as many drivers as possible, the premium refund is available regardless of the vehicle that you have.
As long as you had auto coverage during the time, you should be eligible for the premium refund. Be aware, though, that there are some potential exclusions. You might not qualify for the personal auto premium refund if you chose to put your vehicle in storage while you weren’t driving it. You may also be excluded if your primary means of transportation were a motorhome, antique, trailer, camper, or motorcycle.
- Calculating Your Refund
Your personal auto premium refund is calculated by adding your premium for the two months and multiplying by the total refund percentage. You will receive a minimum refund of at least $20. It’s worth noting that the size of your refund may change if you amend your policy during the time period. It’s also recommended that you check with your insurer to see if any fees are included in your refund.
- Things to Consider
The personal auto premium was designed to assist people who had to undergo a dramatic shift due to the COVID-19 pandemic. Perhaps you were forced to work from home, or your finances were reduced so that you stopped eating out as much. The enforcement of travel restrictions also played a role in less driving. Auto insurance companies recognize that less driving minimizes the chances of a serious accident occurring. Going on an extended hiatus from driving drastically reduces your insurance risk. To help offset the fact that people are driving less, many insurance companies decided to offer this auto insurance refund to policyholders.
If you’re waiting for your refund, you don’t have to take any action. Your insurer will calculate your premium refund and mail it to you. It may take a few weeks for your carrier to calculate your refund and send it out.
Consult with Club Agency
Check with your insurer to see if they can tell you when to expect your refund. If you have any questions regarding your policy, contact the experts here at Club Agency, and we will assist you.