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How to save money on car insurance during The COVID-19 pandemic

How to save money on car insurance during The COVID-19 pandemic

It’s hard to believe that one virus can turn the entire world upside down. COVID-19 appeared out of nowhere and has raged around the world, affecting millions of people and killing hundreds of thousands.

It has caused economies to crash and thousands of people to either lose jobs or face a very uncertain future. One thing that everyone should be doing is looking at ways to cut costs and save money. The good news is that there are ways to save on car insurance, you just need to know-how.

Evaluate Your Cover

The most obvious starting points to assess your current cover and see if you really need everything it offers. While it is nice to have a policy that covers every eventuality, you need to consider the likelihood of these eventualities happening. This is especially true during CPVID-19 as many people travel less than usual.

You can downgrade your policy cover and save a significant amount of money.

Find The Right Insurer

The next thing to do, when your policy is ready to be renewed, is to check you’re with the right insurer.

It’s easiest to use a comparison site, such as mozo.com, although you can ring different brokers yourself. Shopping around is the perfect way to save a lot of money on simply renewing your insurance, without even lowering your level of cover.

If you’ve never shopped around before you’ll be surprised by how much you can save.

Talk To Your Insurer

Assuming you still have plenty of time left on your current insurance policy it’s time to talk to your insurer. They are aware of COVID-19 and will be supportive.

You can ask them to reduce your premium based on the fact that you’re not driving the same level of miles. This isn’t surprising considering the lockdowns and limitations on daily life. Of course, you’ll have to notify them when things return to normal to ensure your policy is adjusted back.

It’s also possible that you can simply pause your cover, negating the monthly cost altogether for a short while.

Of course, if you do this you won’t be able to drive the vehicle on any public road. It’s important to be aware of this before you cut your cover as you may need a car in an emergency. However, if you have two vehicles, pausing one policy is a great way of saving money.

Grace Periods

This won’t actually save you money but it may help you afford the insurance cost. Usually, insurance companies will give you 7 days to pay your policy premium. However, many companies are offering extended payment terms. This will allow you to make your payment up to 0 days later than normal. That can make a big difference when all the bills are going out at the same time.

The key is to speak to your insurer honestly and tell them what you can and can’t afford. They will be willing to help, providing you stick to your new arrangements.

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