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. 

Key findings: 

• 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

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