Sydney’s lockdown was extended today by at least another four weeks and with a cultural shift toward working from home, people are driving a whole lot less.
But with car insurance premiums partly based on the mileage done each year, a tweak to your policy can result in significant savings.
A Holden Commodore usually parked in Blacktown that reduces its annual mileage from 30,000 kilometres to 20,000 kilometres could save $77.50.
And a driver with a Hyundai i30 that halves its mileage from 20,000 kilometres to 10,000 kilometres can save $120 on insurance.
Compare the Market’s Simon Downes said it was simply a matter of updating your information with your insurer.
“With sporadic pandemic lockdowns and more flexible work-from-home arrangements, drivers are encouraged to check the annual mileage on their policy is still accurate, especially if they suspect they are driving less than in previous years,” Mr Downes told 9News.
While other factors are in play, such as crime rates in the area and the age of the driver, annual mileage plays a key role in determining your premium.
“You could be overpaying for car insurance … it’s simply wasting money. Be proactive,” Mr Downes said.
But be warned, you should not make false disclosures about your likely mileage to reduce your premium because it could affect the success of a claim down the track.