Not Driving During COVID-19 Could Lead to a 96% Decrease in Your Car Insurance
Many Canadians have been driving a lot less in recent weeks because of the COVID-19 pandemic. Not informing your insurance company of your changing driving habits, however, could be costing drivers hundreds or even thousands of dollars, says Justin Thouin, Co-Founder and CEO of financial rate comparison site LowestRates.ca. Today, the company released a report to illustrate how Canadians could save money on their car insurance in the midst of the pandemic.
There are a few ways in which Canadians can ensure that they aren’t overpaying for their auto insurance. Some companies have already announced rebate or discount programs for customers. Thouin expects more companies to follow suit in the next few weeks. “Since the coronavirus pandemic is an unforeseen situation, I do expect that insurers will look to rebate or refund some premiums for the reduction in the use of cars,” said Thouin.
But Canadians shouldn’t wait for insurance companies to announce rebates, according to Thouin. He stresses that drivers should take initiative to reduce their premiums if their driving habits have changed significantly. “If you’re not driving your car at all, dropping your coverages to the bare minimum can save a lot of money when it comes to car insurance,” says Thouin.
LowestRates.ca’s new report has broken down what an average 29 year-old male driver pays for car insurance in both Toronto and Montreal, and then how much he could potentially save from changing how much he drives as a result of the COVID-19 lockdown.
The report shows:
- Our test driver saved 15% on a monthly premium in downtown Toronto and 36% on a monthly premium in downtown Montreal when he stopped his daily commute to work.
- Our test driver saved 17% on a monthly premium in downtown Toronto and 43% on a monthly premium in downtown Montreal when he stopped using his car for business.
- Our test driver saved up to 96% on a monthly premium in downtown Toronto and 90% on a monthly premium in downtown Montreal when he stopped driving his car altogether.
“Canadian households are under a lot of financial stress right now because of massive job losses across sectors,” says Thouin. “The findings in this report clearly demonstrate that it is worth your time to look into how you can save money on your car insurance during the COVID-19 pandemic. We encourage you to talk to your insurance advisor to figure out what’s right for you and your family during this tough time.”
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