Should I update my auto insurance policy now?
Whether you’re working from home, getting laid off, or postponing your travel plans during the coronavirus pandemic, you may not be driving your car as often or as far as usual.
In this article, we’ll take a look at three ways to save on your auto insurance until things get back to normal.
3 Ways To Save On Auto Insurance Right Now
If you find that you don’t drive as much as usual for an extended period of time, you don’t need to pay as much as usual for auto insurance.
“The number of accidents that have occurred, claims filed and money to spend for medical problems or physical damage to vehicles or property is unlike anything right now,” says Clark Howard silver expert. “So auto insurers just collect all that money and pay next to nothing. “
Some companies like Allstate, GEICO, Travelers and American Family Mutual Insurance Co. offer coronavirus refunds or credits to compensate current customers. If you aren’t receiving any compensation from your auto insurer, there are always ways to cut costs and make up for miles you aren’t currently driving.
AT make sure you pay a fair price for how much you are using your car for right now, consider these three options.
1. Update your mileage
Your auto insurer probably asked you how much you drive on average, and factored that into your total monthly insurance price. In order to avoid being charged for miles you don’t drive at this time, take the time to update your mileage.
“It really is a fantastic idea to call your auto insurer, or more easily, to go online and log into your account and reduce the miles listed for your vehicles,” Clark Howard recommends.
If you are happy with your auto insurance and want to stay with the same provider, this may be the best option for you. You will likely be able to save money depending on the miles you don’t drive, and when things get back to normal, it will be easy to go back to your original policy.
To start, call your auto insurer or log into your online account through your insurance provider and look for the possibility of updating your mileage.
2. Shop around and compare prices
If you’re a little more flexible with your auto insurance, now is a great time to shop around and request multiple rate quotes. Once you have found the the best most affordable plan, make the change!
Anytime you’re hoping to save money on auto insurance, comparison shopping is a great place to start. Try to get at least three quotes before deciding to change.
When collecting quotes, be sure to have your current policy in front of you. This will help you ensure that you are getting comparable coverage from different providers.
If you need help getting started, consider working with an insurance broker. It’s their job to help you figure out where you’ll get the best insurance coverage for the lowest price. This means you’ll spend less on insurance and work less to find the best quote.
3. Switch to a Pay-Per-Mile Insurance Plan
Finally, consider switching to an insurance plan that allows you to pay by the mile.
“Going to one of the few insurers that you pay per mile for auto insurance would be a great idea now,” says Clark.
If you drive less than 10,000 miles each year, this type of insurance is perfect for you. You go find comprehensive coverage plans and save money in fewer miles you drive.
Typically, you will need to plug a dongle into your vehicle’s port which will record your daily mileage. Some paid insurance companies may require you to download an app to your phone to track your driving.
Keep in mind that these insurers generally do not follow How? ‘Or’ What you drive, the focus is on How many you drive.
Overall, it’s important to keep in mind that these circumstances will not last forever and, eventually, we’ll get back to normal. Yet if you can Save money on your auto insurance in the meantime, the extra money may come in handy later.
“This is a huge short-term windfall for auto insurers and a wasted short-term amount of money for you and me, basically paying for full auto insurance coverage,” said Clark Howard. . “But in a few months we will start to cover quite a few miles again.”
While you are update your mileage, compare rates or purchase a mileage insurance plan, keep an open mind and know that you may be able to realize some savings that last well beyond the coronavirus.