Reducing car insurance payments….safely
So, we seem to have a problem here in Ontario Canada where I live. Many people are getting pulled over for speeding or another infraction and when the officer checks them out, they find the driver does not have insurance on the vehicle. How could that happen? The Ontario government has put a hold on renewing driver’s licenses and vehicle plates of Ontario residents during the COVID pandemic until further notice. But how does that affect not having insurance you may ask?
To renew your vehicle plates, you are required to show proof of insurance. Without the need to renew the plates, some are thinking it’s a good idea to not renew their insurance policy for the time being. Chances are they were trying to save a few bucks. There are other ways to lower your insurance if it’s financially strapping for you. However, there are risks if you just stop having insurance altogether.
If you’re curious, most insurance policies include a clause that if an uninsured driver hits you or your vehicle that you will be covered. You and your family will be covered if you are hit by an uninsured driver or a hit and run driver. You’re also provided coverage for any injuries, death, and vehicle repair costs.
Not having insurance because you’re trying to save a few bucks, in the long term, can place you as a high-risk driver, which could potentially double your rates in the future. The main reason for this is the insurance company may imply you’re driving around without coverage. If you’re trying to save a few bucks, there are ways to do that without affecting your coverage or your future.
Times get tough for many of us over the years, but instead of making a rash decision, speak with the insurance professionals. They may have better ways of saving you money that you have not thought about yet.
Instead of letting your vehicle insurance lapse, speak with your insurance company to find a way to lower your current rates, even temporarily. They may be able to offer you a discount during the pandemic until your job and finances get back on track. You may want to remove all coverages except for comprehensive if you’re not driving the vehicle for a long period of time. I recently did that as the vehicle was being sold but I wanted protection in case it was damaged, vandalized or stolen. The insurance company does realize you’re going to need your vehicle, so don’t take chances, especially if you’re driving it. If you’re not going to drive your vehicle at all, you can put your insurance on hold in many cases. Just speak to your insurance provider and work on the details.
You can also try using an insurance app. Check out information here to learn more.