Given the current circumstances, a lot of us are being impacted in ways we never thought possible. This is especially true for those of us who are no longer required to commute to their jobs everyday. On top of that, with current measures for social distancing, we might find ourselves using our cars less and less.
This is due to many of us now being encouraged to work from home and some individuals may even be finding themselves without work for the next few weeks. We cannot predict when exactly our lives will return back to the way they were preceding the pandemic. So does this mean we should be lowering our car insurance coverage for the duration of COVID-19?
Your insurance provider should be kept up to date on your current auto usage as well as any new information that accurately reflects your situation. This applies to any chances in your car usage, whether COVID-19 related or not. Many factors might affect your premiums, but the kilometers driven – whether for work purposes, leisure, etc – are certainly something you should update your insurance provider or insurance broker about.
After all, there are many influences which impact the cost of your car insurance. Consider your personal demographics, your commute, the distance you drive, the type of car you drive, your driving experience, your claims’ history, your location, and more. Only two of these factors are altered by the COVID-19 situation: your commute and kilometers covered.
Still, it is vital that you update your provider about the changes you have made since these will still be factored into your costs come renewal time.
Why Is Car Insurance Still Important If I’m No Longer Driving the Same Distance?
Your car is still exposed to a range of different risks even when it is no longer regularly used for your typical commute to work or school. Accidents still happen whether we are driving downtown or simply to the grocery store to pick up essentials.
Moreover, your car is still at risk of theft and vandalism while stationed on your driveway or in your garage. In summary, your car insurance is still important even if you are not using it as much because you are still exposed to a number of risks not related to your regular daily commute. Be sure to discuss with your insurance broker about your current situation so that you can adjust your coverage accordingly to reflect your circumstances.
What If I’m No Longer Using My Vehicle During Quarantine?
If you are in a situation where you are no longer using your vehicle (or one of your vehicles) and have opted to store it away for the time this will be reflected in your premiums. However, it is still essential that you account for other risks your car may be exposed to in this time, such as theft or vandalism. Ensure that your car is adequately covered from these threats and that it is well-maintained during this period where it is not in use.
If you are only using one of your cars during this time whether to drive to an essential job or for necessary supplies you might adjust your coverage for kilometers driven while reducing your coverage for the vehicle that is not in use.
It is advised that you discuss with your car insurance broker about what your next step should be during COVID-19. If you are in a situation where you might not be able to afford your existing coverage your broker may be able to help provide you some ways you can cut your costs without sacrificing any necessary protection.
In Summary
Whether it be your home insurance or car insurance, it is always essential that you keep your insurance provider up to date on your current circumstances so that you can manage your coverage effectively. Keep in mind that your insurance is a contract between you and your insurance company and not you and your broker, so your broker cannot delay or freeze your premiums for the time being as a result of the current circumstances. Discuss with your broker if you need advice on managing your costs if COVID-19 is putting you in a situation where finances are tight.
Your car is an important asset and it is essential that you have the right insurance coverage to protect it. It is important now more than ever that your protection reflect your current circumstances so it is advised that you work with your insurance broker closely over the duration of quarantine to ensure that the information you provide them is up to date.
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