The Chronicle Herald (Provincial)
Looking to lower your car insurance costs?
‘Pay-as-you-drive’ insurance ideal for people spending less time on the road
Auto insurance is something every car-owner needs, and making sure you have the right coverage is key.
But once you’ve found the right coverage, have you looked into ways you could be paying less for it? There are some things that can help lower rates. It all starts with talking to your agent or broker.
Ask yourself this: Is my auto insurance company helping me save as much as possible during these challenging times?
If you can’t answer with a definitive “Yes,” then it might be time to have an important conversation with your provider to ensure you’re getting the best possible savings.
From evaluating your lifestyle to taking a closer look at the numbers, here are seven questions you can ask your auto insurance company ...
1. What savings or refunds do you have for me while I am driving less?
The COVID-19 pandemic has drastically changed many of our day-to-day routines. If you’re like most people, you’re driving less right now. Has your insurance company recognized that by adjusting your rate? Some insurance companies have compensated drivers for their decreased driving habits during the pandemic. What has your
current insurer done for you?
2. Is there an insurance policy that allows me to only pay for insurance while I’m driving — for example, a pay-as you-go situation?
Yes, there is. CAA Insurance offers CAA Mypace — Canada’s only innovative pay-as-you-drive insurance payment program.
3. Are there coverages that I can reduce or put on hold while I’m not driving?
Are all drivers in your household driving right now? Are you using all the vehicles you have right now, or can you manage by sharing and only insuring one? Ask your insurance provider whether you can reduce or put any of these coverages on hold. Don’t forget to reinstate any coverages you put on hold, once your driving habits return to normal.
4. Can we do a review to see if I can save more on my policy?
If you’re no longer commuting, does your lower mileage qualify you to switch your coverage to pleasure use to help lower your premium? Would increasing your deductible provide you with cost savings? If you’re driving an older vehicle, maybe comprehensive coverage doesn’t make sense. Talk to your insurance agent or broker about whether anything can be adjusted to help lower your rate. 5. Are there any ongoing discounts or club affiliation discounts you offer that I might qualify for?
Are you a member of a club, union, alumni association or professional organization that may qualify you for an insurance discount? For instance, CAA Members save up to 20 per cent on CAA Auto Insurance, and even more when bundling their auto and home insurance. Ask your insurer if they offer anything similar.
6. What can I do if I can’t make my auto insurance payments this month?
Some insurance companies might provide relief during this time. It may not be a benefit they publicize, so it doesn’t hurt to ask your insurance agent or broker . 7. When does my policy renew? Is there a penalty if I cancel my policy mid-term to switch and save money with another insurance company?
If you’re with an insurance broker, they can shop around for other insurance providers for you and advise you of any penalties you may incur for switching mid-term. If you’ve gone directly to an insurance company, you can determine whether the savings are substantial enough compared to any penalties you may incur.
LOW MILEAGE DRIVER? THE CAA MYPACE PAY-AS YOU-DRIVE INSURANCE PAYMENT PROGRAM MAY BE RIGHT FOR YOU.
This innovative insurance payment program is the only of its kind in Canada. How it works is quite easy. You pay a base rate to cover your car against theft and damage while it’s parked at home and not in use. Then you pay for the distance you drive, by purchasing coverage in 1,000 km increments. Many people have found the savings with CAA Mypace are so substantial, it warranted switching from their existing insurance company mid-term.
To decide whether CAA Mypace is right for you, you’ll need to consider how much you’re actually driving.
CAA Mypace is an ideal option for those drivers who:
• Drive less than 9,000 km annually
• Drive mostly on weekends
• Take transit to work
• Often use their bikes instead of their car CAA Mypace may be a great solution to help you start saving money now, while your driving habits are reduced. Here’s another handy benefit: if your needs change in the future, you
can always switch from CAA Mypace to a traditional CAA Insurance policy with no fees or penalties.
While nobody can predict the future and how long our current decreased driving habits will last, one thing is for sure: it’s worth talking to your insurance agent or broker about ways to save right now.
While you’re at it, don’t forget to ask about how to keep your rates low after the pandemic is over, too — some of those policy changes you make may be worth keeping in place for the long term. Meanwhile, CAA Mypace might be a great money-saving option for you right now.
CAA Mypace is a payment plan that provides the best way to control and manage your auto insurance premiums. To find out more visit Caamypace.com.
Auto and Property Insurance are underwritten by CAA Insurance Company. To qualify for the CAA Member Loyalty Discount, you must be a current CAA Member in good standing (CAA Membership dues paid in full by membership expiry date). Eligible CAA Members may qualify to receive a Member Loyalty Discount based on membership tenure and Roadside Assistance usage. Certain conditions, exclusions and underwriting eligibility rules apply. ®/TM CAA trademarks are owned by, and use is authorized by, the Canadian Automobile Association.