Did you terminate or reduce a policy in 2020? You're not alone. What you should consider now!
Its no secret that 2020 was a tough financial year for many people. The covid-19 pandemic ravaged much more than just families health, but in many cases their wallets and fiscal welfare. So when a recent valuepenguin.com survey showed that nearly 40% of Americans either reduced or terminated an insurance policy over the last year I am positive so one was shocked. While 30% of people polled claimed to have only reduced a policy over the last year, 35% of the people polled claimed to have outright terminated a policy. Obviously saving money was the leading reason for this however 29% of the people polled also cited an outright inability to pay as their reason.
With more business’s re-opening and work for some of us normalizing after the long, tremulous year, it is a good time to take a look at what coverages we may have reduced or canceled in the face of the difficult last year and start asking the necessary questions to make sure that we have the adequate coverage we need moving forward into the new year.
Perhaps a more telling metric in this survey was that 63% of those polled claimed that they had regretted the choice to reduced or terminate their coverage over the last year. And while 29% of those people claimed the didn’t have any other choice it is worth noting that people whom canceled things like life insurance polices will have a very hard time getting rates that match their previous rates, especially on long held policies. The best time to get a life policy was always in the past, the next best time is always right now. Which is something to think about as we normalize over the coming months weather you haven’t had a life policy in the past or have canceled or reduced your policy during the hardships of the last year.
(photo source: valuepenguin.com)
The majority of the people surveyed whom had the wages cut or decreased over the last year also admitted to either reducing or cutting their auto coverage entirely. However what most people didn’t consider was that during the same period of time driving in America became noticeably more dangerous then it was previously, putting themselves at a considerably elevated risk unintentionally during an already trying time. 22% of the people who decreased or eliminated their coverage claimed the coverage had become “unnecessary” because they were driving less do to no longer commuting or commuting much less than normal. Interestingly 40% of those polled whom made over $100,000 a year reduced or eliminated coverage in the last year due to having that jobs that are more easily worked from home. One thing more people have inquired about during this time is usage based insurance, which may make more sense for those who have a lessened commute after the covid pandemic.
While it is certainly true that no one but you can make the right decisions for you and your families situation, being armed with the best information available is always your best defense in the face of potential emergency situations that may arise. As we transition through the covid pandemic back into normal life over the coming months its time for those of you who have reduced or eliminated coverage over the last year as well as those of you who held off inquiring about the additional or adequate coverage you need going forward to do your future the favor of insuring that you and your family are covered properly for any situations that may arise! We are always here to have any insurance related conversations or answer any insurance questions you may have going forward, and as we normalize over the coming months we wish you are yours a smooth and quick transition back into our normal daily lives.
(photo source: valuepenguin.com)