NEW YORK, Jan. 13, 2021 — Due to the pandemic, unemployment rates skyrocketed in 2020 to astounding levels forcing many Americans to struggle to make ends meet. As a result, when looking to cut costs although 26% said that insurance would never be trimmed from their budgets, others had no choice but to cut or eliminate insurance coverage altogether.
ValuePenguin’s most recent survey found that almost 39% of Americans had to reduce or eliminate insurance costs to help them save money or because they found themselves unemployed.
- Almost four in 10 Americans cut back on insurance coverage in 2020, primarily to save money. That number jumps to 65% of those laid off or furloughed due to the coronavirus pandemic.
- Health insurance was the most common policy that consumers decreased coverage for or eliminated altogether, followed by auto insurance and dental insurance. Forty-two percent of women who eliminated or decreased their insurance coverage said they couldn’t afford it, compared with 23% of men.
- Of those who eliminated or decreased their insurance, most are putting that money toward groceries (27%), savings (23%) and debt payments (21%), as well as monthly housing costs (15%).
- Sixty-three percent of those who reduced insurance coverage in 2020 regretted doing so, and more than half expect to restore their coverage level at some point in the future.
- Although insurance is costly (about one in five respondents said they spend $500 or more on monthly premiums), not having insurance can be expensive, too. For example, 58% of respondents don’t have dental insurance, which means they could be facing a big out-of-pocket bill should they have a tooth-related emergency.
View full report: Americans Cut Insurance Coverage
About ValuePenguin.com: ValuePenguin.com, part of LendingTree , is a personal finance website that conducts in-depth research and provides objective analysis to help guide consumers to the best financial decisions. ValuePenguin focuses on value, assessing whether the return of a particular decision is worth the cost or risk of that option, and how this stacks up with the other possible choices they may have. For more information, please visit www.valuepenguin.com, like our Facebook page, or follow us on Twitter @ValuePenguin.
Nadia Gonzalez (Mrs.)