Working from home long term and spending less time driving? It may be tempting to change the insurance cover on your motor vehicle. A cheaper premium may seem like a good idea at the moment but there are reasons why this might leave you exposed to loss or damage.
Will the risk of potential loss and damage outweigh the initial benefit of a lower insurance premium? To evaluate this, here are three factors to consider when contemplating changing your insurance cover if you’re working from home and driving less.
1. Accidents can happen anywhere
Life happens. Whether your car is parked at home or you’re driving on the highway, having the right insurance policy for your vehicle can spare you major car repair bills and medical expenses.
Losses caused by a fire, flood, storm, earthquake and other unforeseen circumstances are covered by a comprehensive motor insurance policy and happen whether or not your vehicle is being driven. Keeping your comprehensive cover going protects you from a wide range of losses.
2. Reducing cover may affect your financing
Used a bank loan to finance your car? Your bank may require comprehensive insurance coverage as a condition of the loan. In such a case, reducing coverage from comprehensive to third party would be considered a breach of the loan contract which may result in legal action.
3. Know the details of the cover you have purchased
Two common motor policies are comprehensive and third party insurance.
● Comprehensive insurance covers damage to your own vehicle arising from a range of causes, as well as damage to someone else’s property or injury to a person caused by your vehicle.
● Third party insurance in its standard form covers injury and damage to the other person involved in the accident, if you were at fault. A Third Party Fire & Theft policy covers those same third party risks as well as damage or loss to your motor vehicle caused by fire or theft.
Each policy can be modified with add ons to meet your specific coverage needs. Having the right insurance cover protects your vehicle from many eventualities.
Remember, having better insurance pays. Learn more about the policy that is best for you by calling General Accident at (876) 929-9643 and an insurance professional at GenAc will be happy to discuss this with you.