How to Reduce Your Car Insurance Costs During a Crisis

​With everyone in self-isolation and some businesses temporarily closed for safety measures during this pandemic, you will be more likely to drive less. And with less time on the road, there's more potential to save on your car insurance policy. Here are four helpful ways on how you can decrease your car insurance premium during a health crisis. 

1. Inquire and Invest on Usage-Based Insurance
   If you are currently in a work-from-home setting, signing up for the Usage-based insurance (UBI) option may save you some dollars each month. UBI, otherwise known as pay as you drive (PAYD) and pay how you drive (PHYD), is a type of auto insurance where the costs depend on the type of vehicle used. It considers factors such as distance, time, behavior, and place. Consult with your insurance broker to know what they offer and how you can benefit from UBI. 
   
   
2. Use Only One Vehicle 
   If you own two vehicles, it may be helpful to use only one car and take the other off the road. You can save money from fuel expenses, but you may also save money on your auto insurance. Additionally, you may suspend your car insurance coverage while you or your family members aren't using the car to drive regularly. It means that you'll not be able to use the vehicle with suspended coverage under any circumstances. Moreover, if the auto insurance policy includes car insurance, it will be on hold as well.  
   
   
3. Raise Your Deductible 
   Here's the rule: the higher your deductible, the lesser your monthly premium will be. Deductible refers to how much you have to pay before your insurance company's coverage takes effect once you file a claim. Ideally, if you drive less, there'll be less chance of you getting into an accident. Increasing your deductible can influence how much your charge will be for your coverage. 
   
   
4. Change Your Car Classification
   If your car is used only for commuting or occasional business trips and you're driving less due to the pandemic, let your insurer know. You can save a lot by changing your car classification from "commuting" to "pleasure" and reducing the amount of listed annual kilometers on your policy. 

At Hayek Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (805) 496-8835 or Click Here to request a free quote.