Since the COVID-19 pandemic began, many Toronto residents have been driving a lot less, working from home, and could save up to 96% on their car insurance if they stopped driving altogether.
However, if residents are not informing insurance companies of the change in driving habits, it could be costing them a significant amount of cash.
According to LowestRates.ca, a financial rate comparison site, there are a few ways Toronto residents can ensure they aren’t overpaying on auto insurance.
Justin Thouin, CEO and co-founder of LowestRates.ca stresses that drivers should take initiative to reduce 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.
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LowestRates.ca’s new report has broken down what an average 29-year-old male driver pays for car insurance in Toronto and then how much he could potentially save from changing how much he drives as a result of the coronavirus lockdown.
The report shows that if they test drivers stopped his daily work commute he could save up to 15% on a monthly premium in downtown Toronto.
If he stopped using his car for business, he could save up to 43% a month.
And, if he stopped driving all together he could save up to 96% on a monthly premium.
In addition, some companies have already announced a rebate or discount program for customers and Thouin thinks that many more companies will follow suit.
“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,” he said.
Thouin notes that households are under financial stress because of job losses across sectors.
“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,” he said.
Based on the report it seems valuable for drivers to discuss with their insurance advisors on how to save on expenses that can be avoided.