Whether you're no longer making your daily commute or you're planning on putting your vehicle in storage because of the COVID-19 pandemic, you might be wondering how your car insurance premium opens a pop-up with definition of premium could change. Let's look at a couple of scenarios and break down the factors that go into determining whether or not changing your policy would save you money.

How your insurance premium could change if you're no longer making your daily commute

If you no longer have the same daily commute as you did when you bought your policy, consider updating the annual kilometres on your policy to reflect that change in your driving habits. Changing the kilometres listed in your car insurance policy may or may not lead to a reduction in your payments. Factors like the length of your commute and where you live impact your premium. If you previously had a long commute, you're likely to save more by reducing your annual kilometres than someone who drove less to begin with. But it's also worth noting that commute length is only one of the factors that goes into your premium calculation, so the amount you save by changing your kilometres may not be as much as you might expect. Your group's licensed insurance broker can find out exactly how much you could save by temporarily adjusting the kilometres on your policy.

After the kilometres are reduced on your policy, you can still use your vehicle for essential errands like grocery shopping or a visit to the pharmacy. When you start commuting again, let your group's broker know right away so they can make sure you have the coverage you need for your commute.

No longer commuting? Talk to your car insurance broker about adjusting the kilometres on your policy to see if it could lead to a reduction in your premium.

How your car insurance premium could change if you put your vehicle in storage

If you're planning to take your vehicle off the road entirely, there are a couple of ways your group's broker might go about adjusting your coverage, and both can lead to significant savings. Depending on your situation, your group's broker will likely either remove all of your coverages except comprehensive coverage (for things like theft, vandalism, and other damage that could occur while your vehicle is in storage) or add an endorsement opens a pop-up with definition of endorsement to your policy to suspend all of your road coverages. Either of these changes could result in much greater savings than just adjusting the length of your commute, since you won't be driving at all while your vehicle is in storage (not even to the grocery store).

If you decide to go the storage route and significantly modify or suspend your coverage, you can't drive your vehicle for any reason, as it's illegal to drive in Canada without certain insurance coverages. You also won't have any protection if you decide to drive and have an accident. When you're ready to take your vehicle out of storage and start driving again, remember to let your group's insurance broker know so they can restart your coverage before you hit the road.

Putting your vehicle in storage temporarily can lead to significant savings on insurance — but you should know that if you do this, it's illegal to drive your vehicle for any reason, as you won't have any coverage.

Always get insurance information from a trusted source

Have you ever heard the saying, "if it sounds too good to be true, it probably is"? This is exactly why it's so important to get your information from a trusted source — especially in a time like this. While some sources are reporting that Canadians may see premium reductions of up to 96% if they stop driving because of the pandemic, the reality is that the vast majority of customers won't see such a drastic change.

When you're looking for information about insurance (and especially when you're wondering about potential changes to your premium), always contact your group's trusted broker or your insurance company for the most accurate information.

While some sources are reporting that Canadians may see premium reductions of up to 96% if they stop driving because of the pandemic, the reality is that the vast majority of customers won't see such a drastic change.


Share this article on Facebook or Twitter to help other drivers learn how their own premium could be affected if the pandemic has led to changes in their driving habits.