Wednesday, June 3, 2020

Immobilized car: how to pay less for insurance?

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It is not always possible to suspend your car or motorcycle insurance even if it remains in the garage. On the other hand, some solutions exist to pay less by modifying the insurance policy … or by changing insurer. Here’s how.

With the health crisis, cars are as confined as their owners, and have been sleeping in the garage for almost three weeks now. This saves on fuel, but also on insurance, which is less useful during downtime. Some contracts allow it, others don’t. This may be an opportunity to study the new insurance offers that are starting to convince more and more drivers. We explain how it works.

Even when parked, cars must be insured

Is it possible to terminate or suspend your automobile insurance when you are no longer using your vehicle? Not at all: even if you don’t drive it, there is a risk to a car, such as theft or the risk of being damaged or burned.
It is however possible to change your insurance policy to opt for the lightest cover, called third party insurance, or civil liability, which allows you to cover damage potentially caused to someone else . The mileage, the main data on which insurers rely to establish the rate of their coverage, is also necessarily much lower: it is therefore normal to expect a possible reduction in rates.

Insureds only want to pay for what is strictly necessary

Moving from all-risk insurance to simple liability coverage, for example, allows significant savings, and may therefore interest more than one. If your insurance has not yet contacted you about this, or regarding possible refunds, this may be a good reason to start thinking about changing your insurance. With the coronavirus crisis, some insurance companies reacted very quickly by showing goodwill towards their customers, to remain competitive in front of the competition. Positioning yourself on the side of users in times of crisis seems to be wise or even vital, because startups are starting to compete with traditional insurance by offering more personalized cover thanks to connected devices.

The Internet of Things for Insurance Modernization and Tailored Offer

The Covid-19 crisis, which imposed an unprecedented “culture of containment”, generalizes services and consumption habits adapted to current circumstances, but also to all kinds of new situations. In the insurance sector, on-demand services therefore have a golden opportunity to gain market share.
In the same way that there are travel insurance policies that automatically detect when you are abroad to charge for only one day of coverage, so do start-ups “Pay when you drive” pay a variable share depending on the driving time.

Time spent driving

Altima (a subsidiary of Maif) launched minute insurance in 2018. The insured pays according to the time he spends driving his vehicle. For this a small box in the glove box transmits the information to the insurer. It is a product designed for those who drive little.

Wilov, for his part, does not even ask to commit himself for a certain period at the signing of the contract. Thanks to its offer, the driver pays, in addition to a subscription (from 15 to 30 euros per month), only when he uses his vehicle, up to 1 to 2 euros in twenty-four hour periods . A badge attached to the windshield communicates with your smartphone to prepare an invoice which will be sent to you each month.
Thanks to connected objects, your insurer will only charge you for those days when you took the car. So if you’ve been convinced by your car-free lifestyle during confinement, now is the time to switch to suitable insurance.

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