On average, stats are showing drivers are using their vehicle 20-70% less due to COVID-19.
The natural question is then "is my insurance premium going to decrease because I'm using my car less?". The answer is *mostly* "yes", but probably not as much as you think.
It's not because insurance companies are are greedy you-know-whats. It's because because the actual use of your vehicle like how many kilometres you drive to work, and how many kilometres you drive yearly only makes up around 3-6% of your auto premium.
The big bucks (around 65%) comes from the coverage that fixes YOU if you get hurt in an accident (accident benefits) and the liability (if you hurt someone else).
Those two coverages are the bare bones of the policy and the lowest level of coverage required to legally drive in Ontario.
Another 20% or so of the premium comes from the collision and fire/theft coverage. For some folks who have two vehicles in the house, they can function with just one vehicle while no longer commuting to work. They are able to find some big savings by removing the accident benefits and liability coverage, as well as the collision coverage. The last portion of the premium comes from the "frills". Things like rental car coverage and accident forgiveness make up around 5% of the yearly premium.
Many insurance companies have streamlined the process so that people are not picking apart their coverages. The reason for this is two fold: 1) you don't want to forget to put the coverages back on when you return to your regular vehicle use and 2) using your vehicle less does not mean you don't need the coverage at all. Instead, some companies have calculated rebates from 1 month to 3 months of your policy premium, and are giving back anywhere from 15-25% of those month's installments.
