Pay less when you drive less during the pandemic

Given the constraints of virus lockdowns and worries over health and safety, the bulk of your automobile use may be from grocery store runs these days. Regardless of where you have gone in the past nine months, you’ve probably driven less than you did pre-pandemic, and that pattern could continue for many weeks or months to come.

With reduced driving, you may be wondering if you can reduce your auto insurance payments. Here are some ways you can potentially save money. (But when reviewing insurance policies, always read the fine print. Some come with stipulations.)

Pay only for miles driven

Pay-per-mile policies differ from standard auto insurance in that the premium is based on how many miles you drive. Yes, standard policies offer a low-mileage discount, but pay-per-mile goes beyond that.

Nationwide offers a pay-permile plan, called SmartMiles, in 40 states. SmartMiles determines a base rate and then adds a costper-mile amount. A device installed in the car’s OBD-II diagnostic port tracks miles driven. It also records vehicle speed and other factors.

If the policyholder drives with care during the first term, an additional 10% discount can be earned. The discount is applied at the next policy renewal and remains in effect while the vehicle is enrolled in SmartMiles.

Pay for the miles you drive and how you drive

Usage-based policies, like Farmers Signal, Progressive Snapshot and Geico DriveEasy, track mileage and assess driver behavior to determine rates. In addition to counting miles driven, these policies consider how often you exceed the speed limit, brake hard and accelerate or corner aggressively. Most insurers monitor the driver’s cellphone and penalize those who talk or text while driving.

The policies generally provide a 10% discount on sign-up, although some state regulations limit the initial discount to 5%. Additional discounts are awarded based on the observed driving record. Some usage-based policies also use a device in the OBD-II port to keep an eye on the driver and track mileage. Others use the driver’s cellphone, which with its global positioning capability, accelerometer, gyroscope and magnetometer can determine a lot about the way the car is being driven.

Stay and save with your current policy

If shopping for a new insurance policy is headache-inducing, there are other ways to save. Do you expect to continue to drive infrequently? You may qualify for a low-mileage discount on a standard policy. You may be asked to verify mileage when speaking with your agent; maintenance records can help. Raising your deductible will reduce your premium as well.

ABBEY LOSSING/NEW YORK TIMES If your car is spending more time in the garage than on the road during the pandemic, you may be able to reduce your auto insurance payments in various ways.