If I Drive Less, Do I Pay Less For My Car Insurance?

The Covid-19 pandemic has significantly changed the way we work, study, and commute. Certainly this has been the case over the last two years for millions of people who drive daily to their jobs. By having your car parked in your driveway, you not only save money on gas, but  you can even save more on your car insurance premiums. It is crucial, however, to always check with an insurance broker and update your car insurance policy to take advantage of the possible savings related to working from home in the midst of the Covid-19 pandemic. 

If I Use My Car Less, How Does This Affect My Car Insurance Policy?

One of the key factors in determining your car insurance premiums is the distance that you travel by car annually. The general consensus among car insurance companies is that if you travel less, you are less likely to get into an accident or have a claim. 

So, if you are one of the millions of people who work remotely from home and don’t use your car to commute daily to work, it is prudent to let your insurance broker know of this so that you can benefit from the savings on your car insurance rates. Most of the time, insurance brokers or agents calculate these savings based on how far you commuted to work prior to the start of the Covid-19 pandemic. So if you have significantly reduced the annual mileage on your vehicle by not commuting to work, you can expect to pay less for your car insurance.  

If My Car Is In Storage, What Happens To My Insurance Premiums?

If you don’t use your car at all and have opted to park it in storage, you may consider switching your insurance coverage to comprehensive only. Under this policy option, you may not drive your car, however, you will be protected from incidents of theft, vandalism, and falling objects. 

If you do this, you will see a noticeable drop in your insurance premiums as the risks for car accidents and claims are greatly reduced simply because your car is not on the road. What is important to remember is that you must update your car insurance coverage with your broker once you decide to drive your car again. By doing this you will have the proper coverage for your vehicle, along with peace of mind while being on the road.

What Happens To My Insurance Premiums If I Have Changed The Way I Use My Car?

If you use your car for business and your travel distances have changed due to the Covid-19 pandemic, it is a good idea to change the business use percentage on your car insurance policy. For example, if you do not travel to meetings but meet virtually with your business partners, you may see savings on your policy due to the fact that you eliminate the risk of making a claim as you drive less.

On the other hand, if you use your vehicle more due to finding employment in ride sharing and paid delivery, you must let your broker know of this immediately. Most personal car insurance policies prohibit that you use your personal vehicle for making paid deliveries and driving passengers for hire. In many cases, you may need to change your car insurance policy to a commercial one, or pay higher insurance rates as a result. Failing to disclose this information to your insurance company can result in your insurance policy being cancelled.  

If you have questions on how you can get more savings on your car insurance rates as a result of the Covid-19 pandemic, please contact us today and we will gladly provide you with the necessary information that you need.