Yes, you might be able to adjust your car insurance during a lockdown, but full suspension is rarely an option. Instead, insurers often allow reductions in coverage or payment plans based on decreased driving. Contact your provider immediately to explore alternatives, as policies vary by state and company. Driving without insurance is illegal in most places, so never cancel outright without a proper plan.
During the COVID-19 pandemic, many insurance companies introduced temporary flexibility, such as premium refunds or low-mileage discounts, due to reduced road usage. For example, if you're working from home and not driving, you could qualify for a usage-based adjustment. Key terms like liability insurance (coverage for damages you cause to others) and comprehensive coverage (protection against non-collision events like theft) might be reduced, but this increases your risk if you need to drive unexpectedly.
It's essential to understand your state's regulations; some require minimum coverage even if the car is parked. Authorities like the National Association of Insurance Commissioners (NAIC) recommend reviewing your policy details before making changes. Objectively, while saving money is tempting, suspending coverage could lead to gaps, leaving you vulnerable to fines or uncovered accidents.
Below is a table summarizing hypothetical data from major insurers during past lockdowns, illustrating available options. This data is based on industry trends and should be verified with your provider.
| Insurer | Policy Flexibility Offered | Typical Reduction/Adjustment | Eligibility Conditions |
|---|
| Geico | Payment deferrals | Up to 15% premium credit | Required proof of reduced mileage |
| State Farm | Low-mileage discounts | Average 10-20% savings | Must drive less than 50 miles per week |
| Progressive | Snapshot program adjustments | Variable discounts based on usage | Enrollment in usage-based insurance |
| Allstate | Premium refunds | One-time 15% refund in 2020 | Applied automatically to eligible policies |
| USAA | Coverage reduction options | Customizable based on storage | Military affiliation required |
| Liberty Mutual | Temporary suspension for stored vehicles | Full premium pause in some states | Vehicle must be undriven for 30+ days |
| Nationwide | Payment plans extended | Deferred payments for 60 days | Proof of financial hardship |
| Farmers | Comprehensive coverage pause | Savings on non-essential coverage | Vehicle must be in secure storage |
| American Family | DriveSafe & Save tweaks | Increased discounts for low usage | App-based tracking required |
| Travelers | Accident forgiveness pause | Reduced premiums for parked cars | Must maintain liability coverage |
Always document conversations with your insurer and consider the long-term impacts on your rates. If you're storing your car, look into storage insurance—a minimal coverage option that protects against theft or damage while parked. Ultimately, proactive communication is key to navigating this safely.
