It's been several weeks since the coronavirus cases in the country started to rise at an exponential rate. While our healthcare system is fighting a long, hard battle against the pandemic, the loss of businesses and jobs due to the economic slowdown has sent many Canadians into a financial-crisis mode.
As we witness the impact of COVID-19 on personal finance, many of us are rummaging through our old denim pockets, desperately hoping to find some extra cash. If you believe in the saying 'money saved is money earned', then you can save some precious money by smartly altering your car insurance. In case you’re looking online for an SR22 insurance quote, consult Insurance Navy for an affordable policy. Here are a few ways to save money on car insurance during COVID-19 crisis:
- Reduce your coverage: While we practice social distancing, and self isolate ourselves by staying indoors, our cars are off the roads as we seldom use them these days. With the situation of COVID-19 worsening every day and a longer lockdown period on the cards, it makes sense to drop the coverage of your car to the bare minimum. You may consider getting rid of comprehensive coverage, no-fault insurance coverage, etc, as you are not likely to drive often in the near future. Reducing your coverage can bring your monthly premiums down a notch.
- Lower your kilometers driven per year: One of the factors that determine your auto insurance premiums is how often and how long you drive in your day-to-day life. The everyday commute to work or school, combined with the total number of kilometers that you are likely to drive in a year, has a significant impact on premiums. With schools shut and most people working from home, you're likely to cover fewer miles on the road this year. Consider lowering the kilometers driven per year to save some extra money on car insurance.
- Increase deductibles: The auto insurance premium that you pay is directly proportional to the deductible amount. The higher your deductible the lesser your premium will be. Normally, increasing the deductible is always fraught with risk as it leaves you financially vulnerable in case of accidents, theft, and other damages. But with weeks of quarantine ahead of us, the roads are expected to be empty, and thus reducing the chances of any accidents. In this case, it might make sense to increase your deductibles to reduce your premiums.
- Drop your teen from secondary-driver insurance: If you share your car with your teenage son or daughter, now might be a good time to remove them from secondary-driver insurance coverage. With schools and colleges closed, and a lockdown in place, your teen is unlikely to take the car for a spin anytime soon. Thus, it makes sense to drop them from secondary-driver coverage. This could help you lower your premiums significantly.
- Shop online for better deals: The coronavirus pandemic is affecting businesses across the board, and the auto insurance industry is no different. Experts predict that the insurance rates are going to reduce in the near future, so it is advisable to keep comparing car insurance quotes online to find better deals in the coming weeks and months.
Apart from these steps, you could always talk to your car insurance provider and try to negotiate a favorable deal that helps you save money in these financially difficult times.