Due to the uncertainty and financial challenges facing our nation due to COVID-19, many of the companies we represent are offering financial assistance to their customers, such as:
- Extended payment due dates or waived late charges
- Paused cancellations due to non-payment
- More flexible payment options and grace periods
- Delivery coverage expansion for auto policies
- Refunds of premium
Here, however, are a few points to remember. Late payments can result in your coverage lapsing or terminating. In some cases, a policy can be reinstated by catching up with payments, but insurance companies are generally not obligated to reinstate your coverage. Efforts to ease the financial strain on policyholders are in the form of time extensions, not the forgiveness of the payments. If you use a longer grace period or if you can “skip” insurance payments, your total bill will still accumulate.
Insurance companies are constantly evaluating coverages, billing practices and tools provided to customers to ensure we ALL make it through this together. Some companies are waiving late fees and will not cancel or non-renew policies due to non-payment but a call to us or the insurance company directly to ask for this help is required. Companies are providing payment leniency to customers who call and ask for it. That is where we can help as your independent agent. We can contact the company on your behalf to discuss options such as changing a due date, changing a payment plan or getting a payment extension. We are here to help and can assist you through a phone call or email. We look forward to opening our doors again when it is safe to do so. Until then, BE WELL.