Have you been self-isolating and spending the majority of your time at home due to Covid-19 measures and protections? Are you currently driving much less, or barely at all thanks to the stay-at-home measures that have been put in place? If so, then you are like thousands of others in the same boat, but what you may be surprised to know is that there are auto insurance companies that will lower their rates due to you driving less. It’s just another break in bills that can help you to cover your expenses, especially if you’re out of work at the moment.
How Much Can You Save?
For many people, the order to stay at home as much as possible has resulted in either a temporary lay-off or a permanent lay off, which means bills are even tougher to pay than normal. This has people looking for ways they can save money in their everyday life, and here’s where the car insurance break can come in handy.
In fact, a case study from LowestRates.ca in Canada shows there are ways that you could be saving up to 96% on your car insurance, which is a huge saving. Even if it’s not that full amount, there is usually some percentage to be saved.
How Can I Save Money?
The way that these savings are being realized is through two different routes. The first is to reduce your coverage. Because you aren’t out there commuting and driving around on a daily basis, you likely can remove some of the coverage you have. Now, this will depend on the coverage you currently have, and how much you are still driving your car.
The other way to save money is to actually change the usage of your vehicle on your policy. Any time you use your car less, or in some cases not being used at all, you can inform your insurance company so they can adjust your rate accordingly.
Now keep in mind these savings are just temporary relief. The idea is that you enjoy these savings while your driving habits have changed, and then once you start driving more – your rates will go back up. What this means is that you need to inform your car insurance company of your driving habits as they do go back to “normal”.
Typically the way rates are calculated is that you use your car for leisure/personal use and for commuting. If both of these have dropped off, then so should your rate. Even if it’s just the commuting that has changed, that alone will make a difference.
If you happen to live in a large city, the difference in the rate will be even more noticeable as you would have started out paying more to begin with.
Any Bit of Savings Helps
The whole idea is to find creative ways to be saving money during these times of self-isolation and the pause in regular normal activities. Being able to save money on your car insurance is most definitely a great option for drivers.
Interesting related article: “What is Insurance?”