There is no denying that times are confusing right now. We have had to acclimate to a new normal in a very quick amount of time, and this sudden change has created a lot of uncertainty. Many of us are having to look to our finances to see where we can save money so that we can prepare for whatever comes next. For some, this has brought up the question of what to do with insurance that we feel like we no longer need. The first thing to remember is that this is not the new normal- society’s current situation during the Coronavirus quarantining efforts will not last forever. Soon life will resume the routine that we remember, and when that time comes, we will need the same coverage and protection as we did before all of this. This article will be addressing some of the myths and misunderstandings that have arisen about insurance during COVID-19.
Should I get rid of my auto coverage while I’m not driving?
We are being told to stay at home as much as possible and this means that we are not driving as much. Does this mean that you should lower or remove your auto coverage during this time? Absolutely not. When life does return to normal and you will have to change out of sweat pants to go to work, you will need that coverage and the lapse will result in a price increase and possible loss of loyalty benefits with your carrier. Trying to save some money now will cost you more money later, and so it is better to hold onto the policies that you currently have so that you are ready for when you will fully need them again.
Doesn’t travel insurance cover costs associated with Coronavirus?
Unfortunately, no. Generally, standard policies sold from mid-January to now have specifically excluded coverage concerning COVID-19, as it had been classified as a foreseen event. This means that if you took advantage of the cheap plane tickets and, shocker, got infected, then this is not covered by your insurance. The same logic applies to trying to buy a cheap house during a wildfire…
Won’t I be covered if I get sick during a business trip?
Not necessarily! Workers Compensation policies are compulsory for employers, and they cover medical care and lost wages for employees who were injured or compromised while working. The levels of this compensation vary by state, and so you should discuss these policies with your employer and insurance agent to know exactly what you are entitled to.
People who have lost their jobs or have had their employment changed will get these benefits as well, right?
Unfortunately, not everybody qualifies for unemployment insurance, depending on their employer. Religious institutions such as churches do not qualify to provide this insurance to their employees, and employers can vary on what qualifies their employees for this service based on their amount of work hours, reason for furlough, benefits received, etc.
These are just a few of the confusing questions that have arisen because of Coronavirus, and many of them can involve stressful research and uncomfortable discussions with your employer or managers. But this is not a time to worry, this is a time to use as an opportunity to know what you do and don’t have covered. This is a time to see what needs to be protected and to do so, so that you land on a stronger footing when this pandemic is over than what you were standing on before it. Use this time to talk with us your trusted insurance agent- we have the information and answers you need and will work with you to make sure that you are kept safe. Contact us today!