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6 Tips to Save on Car Insurance During COVID-19

Written by Sahar

As the second wave of COVID-19 rolls over the globe many countries are going in for the second round of lockdown in this pandemic. It isn’t going to be as intense, or as extreme as the first one, but it will take a toll on the holidays. If you’re looking for something to cheer you up, then you’ve come to the right place. It’s not all gloom and doom. We have tips to help you reduce car insurance during these testing times.

People are using their cars less and less. There is hardly any need since most everyone is working from home. Kids don’t need to be ferried to and from school every day. Many families are avoiding car trips as an extra precaution till the whole thing blows over. And yet, you’re expected to pay the same insurance premium as before. That’s not fair at all. So how do you cut back on car insurance expenditure?

Shop Around and Compare

The first step to getting a reduction in your car insurance expenses is to search the market to assess the kinds of discounts you can expect. The best place to do that is the good old interweb. Log on to any insurance comparison site and start searching. You can change your desired features as you go till you find something that comes under your budget. Some even have a COVID-19 discount available. Insurance comparison websites are also great for discount hunting. Most have running deals with workshops, and garages that you can avail of once you purchase car insurance from the vendor.

Switch Insurance Provider

In your search for lower rates if you come across one that covers all your pandemic car insurance needs and is under budget, might as well go for it. Don’t waste time considering alternatives. It is more than likely that the slashed prices are a result of the pandemic. Many businesses across industries have reduced prices to meet the low demand. If you wait too long you might miss out on the current low price. So switch while you can.

Talk to Your Current Provider

If you like your insurance provider and don’t want to bother with the hassle of looking for someone new simply call up your current provider and talk to them about your concerns. The pandemic is a unique set of circumstances that most everyone has to come to terms with. Many businesses are eager to keep their customers and are willing to arrange different terms for ongoing contracts. It is highly likely that your insurance provider will be more than willing to hear you out and help change your current policy to suit you better. You can negotiate a lower premium and save on car insurance during the pandemic. 

Change Up Your Policy

Your car insurance requirements for the COVID-19 pandemic are much different from what they would be if you had more use for your car. You can therefore get a cheaper insurance deal by changing up your policy. This with comprehensive coverage can apply for third-party liability (TPL) because they run a lower risk of damages from collisions because they aren’t using their cars anymore. Opting for a low-risk policy like TPL they can save money yet keep their car insured during the pandemic. 

save on car insurance

Get a Higher Deductible

You must have heard the term deductibles when doing research on cheap car insurance. But what does it mean? Deductibles, essentially, are the amount the policyholder will pay by way of damages in the event of a claim. So say you got in an accident and the total damages amount to Dhs 5000; you will have to pay your deductible amount before the insurance provider pays out on a claim. Deductibles can be set as a fixed amount or a percentage of the claim.

Now, you must be wondering how this helps you save on car insurance. Policyholders who opt for deductibles get lower insurance premiums. The higher the deductible, the lower the premium. Since you run no risk of collisions or car damage during the COVID-19 pandemic you can raise your deductible to save more on car insurance.

Combine Insurance for More Savings

Another way to save on car insurance is to combine all your insurance policies under the umbrella of a single provider. Instead of moving to a new insurance provider, call your agents and set up health and home insurance with your car insurance provider with the understanding that you will be given a discounted rate on all three.

These were just a few tips on saving on car insurance. You can find more interesting and money-saving ideas on our blog.

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    Originally published Dec 13, 2020 00:09:18 AM, updated May 09, 2024

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