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Don't cancel your car insurance, even if you aren't driving - here's why

Posted at 9:42 PM, Apr 02, 2020

More than ever, people and cars are parked at home.

"Five o'clock traffic was bumper to bumper, stop and go, and now it's a lot lighter than it used to be," Acadiana resident Micheal Lorraine said.

Some drivers are left with questions about car insurance as the coronavirus pandemic continues - should they pay it? Ignore it? Or cancel it?

Linden Burton says he and his girlfriend just had this conversation.

"You don't even drive, you might as well just cut it off. You're not doing anything, so you might as well cut it off," Burton said.

However, Blake Domingue with Leauxcal Insurance in Youngsville says canceling your policy is a bad idea. He says not only will you have to re-register your vehicle, but it will also cost more.

"So then when you go get insurance again on your vehicle, you're going in as a customer that was not covered for a while, and it can be more expensive for those people," Domingue said.

The Louisiana Department of Insurance has issued a plan for providers to help consumers. Domingue says Rule 40 prevents insurance companies from canceling a drivers policy due to a late or non-payment.

"If they can't make a payment at all, that's fine too, but they will still be responsible for whatever balance accumulates during this period," Domingue said.

The Consumer Federation of America wants state insurance commissioners and insurance companies to give consumers relief. They recommend calling your insurance company and asking to be re-rated if your mileage is down. To read more of their recommendations, click here.

Rule 40 will be in place until May 12th. For more information on Rule 40, click here.