Group: Stop the COVID cancellation policy on auto insurance

Stop The COVID Cancellation Penalty: Insurers Must Not Penalize Drivers Who Drop Insurance Due To Impact Of COVID-19
Louisianans who drop insurance because they’re not driving face steep premium increases when they resume insurance

As Louisianans are laid off and furloughed by the hundreds of thousands and travel is restricted, cars are coming off the road and some folks just aren’t driving. But if they cancel the insurance they’re not using they face massive premium increases when they buy insurance again later.

Those premium increases are so steep that insurance industry representatives are telling people to keep paying for a product they’re not using, at a time when they can least afford it. That’s unacceptable.

Someone is not a greater risk on the road because they had to cancel their insurance when they were laid off and stopped driving during the COVID-19 crisis, at no fault of their own. Those folks should not be penalized when they get back to work and back on the road.

“Louisianans who aren’t driving and can’t afford to pay for car insurance due to the impact of COVID-19 should not be gouged by insurance companies when they resume their insurance in the future. Commissioner Donelon needs to call on insurers to remedy this situation and stop the COVID Cancellation Penalty,” said Eric Holl, executive director of Real Reform Louisiana.

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