Due to the pandemic, most people are driving far less than they were at the beginning of 2020. With most companies allowing people to work from home whenever possible, daily commutes have virtually been eliminated. For two car households, it may seem redundant to have more than one car and, more importantly, to be paying top dollar for car insurance on cars you simply don’t drive as much as you used to.
So, should you consider pausing your car insurance? Let’s take a look at the pros, cons, and how you might be able to save on your auto insurance.
Cancel, Pause, or Reduce Your Car Insurance
There are three very different approaches to saving money on your auto insurance. Be careful though. Each of these approaches has definite pros and cons.
Cancel Your Auto Insurance – This is a really a last-ditch effort to save money and means that you can no longer drive your car. It is illegal to drive your car without at least the state minimum level of auto insurance. So, only go this route if you truly can no longer pay your premium and you are willing to give up driving your car.
Pause Your Auto Insurance – If you do not intend to drive your car for more than 30 days, it may make sense to pause your auto insurance and take your car off the road. Most states have a form you can use to notify the motor vehicle department that you won’t be driving your car.
Reduce Your Car Insurance – If you intend to keep driving your car, but much less than you used to, you should look at ways to reduce your car insurance costs. In fact, reviewing how much you pay for car insurance should be a yearly task. This is often the best way to save money on auto insurance.
Ways to Reduce Your Car Insurance Costs
If you really want to get your cost for auto insurance under control, especially if you are driving less than you used to, it’s time to review all the ways you can save on auto insurance. Here are a few.
First, you can reduce your coverage. If you have an older car, you may consider dropping collision and comprehensive. Just be sure you can afford to replace your car should a serious accident lead to a total loss.
You should also take a hard look at available discounts. Many people miss easy discounts like those for good student or membership in an organization, such as AAA.
Telematics can be a great way to reduce your costs because it is based on actual data. By using telematics from your insurance company, the data will show how much less you are now driving.
One of the best ways to save money is to shop around. By comparing rates from several insurance companies, you can be sure you are paying a fair amount for the coverage you need.
InsuranceWins is here to help. You can use our simple auto insurance quote form to start receiving quotes from companies you know and trust. With a little effort, you might find some big savings!