Covid Unemployment’s Effect on Auto Insurance Rates

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Covid unemployment

Unemployment happens from time to time, even to the most hardworking American. With the strike of Covid-19, however, there has been an unprecedented number of Americans out of work. In fact, it is estimated that roughly 24-million Americans found themselves out of work at some point following the initiation of the global pandemic.

Dyer, Garofalo, Mann, & Schultz are among the leading auto accident lawyers in Ohio, with a strong specialization in insurance law. With Covid unemployment keeping so many Americans from making important payments on homes, vehicles, and more, many are asking, will unemployment affect insurance? And what kind of reflection will we see in auto insurance costs after Covid?

Here, we will break down the expectations for future auto insurance costs after Covid, and what you can expect going forward.

The Covid Unemployment Butterfly Effect

There is a belief that if a butterfly flaps its wings, it affects the world on a greater scale through a ripple effect. Covid unemployment has touched many areas of the United States, and with it comes a ripple of its own. Car insurance is one of the areas being impacted by Covid currently, with some Americans going so far as to forego auto insurance, thus landing themselves in hot water should an accident occur.

In Ohio, the laws regarding auto insurance require drivers to have a minimum of 25,000 coverage for injury or death and $25,000 for damaged property in a car crash. Still, some Americans are choosing to drive without insurance, and it is causing big legal problems.

Not only is there a risk of a fine if you are pulled over without car insurance, but any costs accrued for damage to property and self must be paid. Without insurance, that money is coming out of your wallet, and it can be upwards of $20,000 in some cases. 

Uninsured Driver’s Insurance Increase Auto Insurance Costs After Covid

So, how can the recent lack of insurance purchasing affect auto insurance costs after Covid? The more Americans who get into accidents without insurance, the more Americans there are who do not receive compensation for their vehicles and medical bills in an auto accident. This forces Americans who do purchase insurance to purchase additional insurance in the form of uninsured driver’s insurance.

As the name suggests, uninsured driver’s insurance protects you if you get into an accident with a driver who is uninsured. You see, if you get into an accident, even if the accident is beyond a doubt the fault of the other driver, your auto accident lawyer will not be able to sue because there are no funds to payout. This increases the need for specialized coverage. Unfortunately, it also increases the need for higher insurance standards.

Working with Your Insurance Company to Minimize Additional Auto Insurance Costs After Covid

Like other companies around the United States, many auto insurance firms are taking it upon themselves to reduce prices and even forgive missed payments while the pandemic is upon us. Insurance companies understand that Covid unemployment is causing trouble for many men and women who normally pay their bills on time and ensure their vehicle down to the last bolt.

Take it from auto accident lawyers, one of the first steps you should take if you are unable to make payments on auto insurance, is to contact your provider and discuss your options. You might be surprised to learn just how far your insurance company will go to help you make your payments again.

Seek Our Additional Assistance Following Covid Unemployment

If Covid unemployment has you dreading the auto insurance costs after Covid, it might be time to seek additional support. Aside from your insurance provider, there are some organizations and government initiatives that are working toward financially supporting Americans in need during the pandemic.

One such company is called SafetyNest. They are a not for profit organization paying up to $250 in insurance premiums for approved Americans. These provisions are only offered to those suffering due to Covid unemployment, and the payment offer could change as time goes on and employment strengthens. This organization services Missouri, Texas, Illinois, Arizona, and of course, Ohio.

Keep your eyes opened for other organizations providing similar support as American faces one of the highest unemployment rates we have seen in decades. More and more non-profits are forming to help others in need. Do not be afraid to ask for help, and do not avoid calls from your insurance agency. Rather be upfront, and find a way to work through the rough spell together.

Work with Your Auto Accident Lawyer

Whether or not you have been personally affected by Covid unemployment, you may have concerns about auto insurance costs after Covid. Working with your auto accident lawyer immediately following a car accident, you can reduce your stress levels and increase the chances of successfully receiving the compensation owed to you.

You may also require an auto accident lawyer if you have been accused of auto accident liability. Being liable in an auto accident leaves you exposed to a lawsuit, action from the government, and more. Your auto insurance lawyer acts on your behalf to keep you and your assets safe.

Will Unemployment Effect Insurance?

Hopefully, this guide has given you some things to think about regarding auto insurance costs after covid. Will unemployment affect insurance? The auto accident lawyers at Dyer, Garofalo, Mann, & Schultz believe so. The intensity of these effects will continue as they missed payments and lack of insurance goes unchecked.

As a local law firm, it is important to us that our clients understand you are not alone during these trying times. We are here to help you with any legal aspects of auto insurance, protecting you and your assets in the case of an accident.

For more information on auto insurance costs after Covid, or to learn about our service options as your auto insurance lawyer, contact Dyer, Garofalo, Mann, & Shultz today.


Quick Answers

What to Do If Covid Unemployment Makes Insurance Unaffordable?

If Covid unemployment has you dreading the auto insurance costs after Covid, it might be time to seek additional support. Aside from your insurance provider, there are some organizations and government initiatives that are working toward financially supporting Americans in need during the pandemic.
One such company is called SafetyNest. They are a not for profit organization paying up to $250 in insurance premiums for approved Americans. These provisions are only offered to those suffering due to Covid unemployment, and the payment offer could change as time goes on and employment strengthens. This organization services Missouri, Texas, Illinois, Arizona, and of course, Ohio.

What Happens If I Don’t Have Insurance?

In Ohio, the laws regarding auto insurance require drivers to have a minimum of 25,000 coverage for injury or death and $25,000 for damaged property in a car crash. Still, some Americans are choosing to drive without insurance, and it is causing big legal problems.

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