Skip to content
Sponsored Content

Ways to save money on auto insurance during COVID-19 outbreak

With less time on the road, there are more opportunities to save
Insurance hotline Spotlight Title image_Network

As businesses are closed around the country and millions of Canadians are under lockdown, most people are not using their vehicle as much. If you are not an essential worker, it may be possible to take advantage of not using your car and save.

Rarely has the term “every little helps” been as relevant and you could save some money on your auto insurance quote during the coronavirus outbreak. 

Here are some ways you could reduce your premium over the coming weeks and months:

Ask for a Higher Deductible

A deductible is an amount of money you agree to pay before an insurance company will release a claim. For example, if you have a $500 deductible on your insurance policy, you must pay this amount to activate your coverage. 

Many Canadians will opt for a low deductible to avoid paying too much if a collision happens. However, if you are not using your vehicle as much now, it may be worth increasing your deductible. Insurance companies typically provide more affordable premiums when a customer chooses a higher deductible because it reduces the risk on the carrier. Be sure you can afford to pay the higher deductible in case you need to make a claim.

Try Usage-Based Insurance (UBI)

Usage-Based Insurance is often viewed as a win-win situation for both customers and insurance companies. As more Canadians use their car less, UBI could be an attractive option to get auto insurance discounts. 

Insurance companies determine UBI premiums based on many factors. For example, driving habits such as braking and speed. However, your carrier will also look at vehicle use, such as when you drive your car, how often, how far you travel, times of day, and other criteria. If you use your vehicle less, UBI may could reward you with a reduced premium. 

Speak to your broker to find out what coverage options are available to you. 

Change Your Vehicle Classification

When taking a policy with an insurance company, they will ask you to provide the main use of the vehicle. For most Canadians, they will classify their car for commuting and pleasure use, which means you use your vehicle for getting to and from work, and for general use (taking kids to school, travel, etc.).

During the COVID-19 outbreak, millions of Canadians won’t be driving to work. If you are one of those drivers, it could be worth contacting your insurance provider and limiting the vehicle classification to “pleasure”. Because you will drive less, the carrier may be able to give you a rate discount. However, you must remember to revert to the standard classification when you return to work, or your insurer won’t pay out under some claims scenarios (such as a collision during your commute). 

Remove Insurance or Named Drivers

Many Canadian families have more than one car or more than one driver named on a single-vehicle policy.

  • If you have multiple cars in your household, you could save money by suspending the auto insurance on one of those vehicles. Of course, this means you will need a safe and secure location to store your non-insured vehicles. 
  • For customers with a spouse or teen named on their policy, consider removing them from the coverage.  

More Auto Insurance Options During the Coronavirus Outbreak

There is more you can do to save:

  • Reach out to your broker and ask about discounts your auto insurance company has. Perhaps you have overlooked something that could reduce your premium. 
  • Over the coming months, auto insurance policies will come up for renewal for many Canadians. Compare rates for your auto insurance coverage to find the best quote.