With less time on the road, there are opportunities to save
With self-isolation and non-essential businesses temporarily closing to promote public safety and reduce the spread of the Coronavirus, you will likely be driving less over the coming weeks.
And with less time on the road, there’s potential to save your auto insurance policy.
Here are four ways you may be able to reduce your auto insurance premium during the COVID-19 pandemic.
Sign up for usage-based insurance
Usage-based insurance (UBI) options, pay-as-you-drive and pay-as-you-go use technology to monitor your driving habits, tracking behaviours like how often you drive, how far and when in addition to speed, acceleration and breaking. If you’re working from home or are off work, signing up for UBI may save you a few dollars each month. Talk to an insurance broker to find out what they offer and how you can take advantage of usage-based insurance.
Have two vehicles? Take one off the road
If you are a two-vehicle household, it may be worthwhile to take one vehicle off the road and suspend your coverage on it while you or your family aren’t driving daily. This means you can’t drive the vehicle with suspended coverage under any circumstances. Also, if the policy includes rental car insurance, this will be on hold as well.
Increase your deductible
The higher your deductible, the lower your monthly premium.
A deductible is how much you have to pay before your insurer’s coverage kicks in if you file a claim. Theoretically, if you’re driving less, there is less of a chance you’ll get into an accident. Raising your deductible can influence how much you will be charged for coverage.
Change your vehicle classification
If your vehicle is used for commuting or occasionally for business and you’re driving less due to COVID-19 or other reasons, let your broker know. You could save by changing your vehicle classification from “commuting” to “pleasure” and lowering the amount of listed annual kilometres on your policy.