Many motorists use a vehicle to commute from home to work as it is more convenient than using public transit. But there are also others who prefer to commute by transit due to many reasons. Affordability issues to keep a car could be a reason. Or using transit may be more convenient and economical for others. Some may prefer to use a second vehicle for pleasure purpose and not to travel to work. Such a vehicle could be termed as a pleasure vehicle.
What Differentiates A From A Regular Vehicle
The three main types of usages that vehicles are categorized are for work, business and pleasure. A pleasure vehicle is not used to commute to and from work and is used less daily. Some drivers may have more than one vehicle. One could be a regular car used for work and the other could be a pleasure vehicle. In Ontario, it is compulsory for a motorist to have car insurance. When the province does mandate for having an active insurance with minimum coverage, it does not stipulate on purpose of usage. There could also be a benchmark in mileage that insurance companies set while deciding the allowable annual kilometers for a pleasure vehicle.
Does The Insurance Company Know About Car Usage
It may be your responsibility to inform the insurance company about the car usage. The insurance company also keeps track of the annual and daily mileage on your declared pleasure vehicle. Any considerable variance could mean that you had been using your car for more than the stated purpose of use. Insurance companies have many ways to check if you have been using your car to commute to work or just on occasions.
Certain insurance companies do set limitations on the annual mileage allowed per pleasure vehicle. Some companies do random checks on odometer readings to know if you had been driving more than specified. In the event of a claim due to a collision, the insurance company could actually check whether you had violated the status of usage of your car that was declared as a pleasure vehicle.
How Is Insurance Calculated For Pleasure Vehicles
There are many variables considered while calculating car insurance premiums in Ontario. Each driver has different driving habits, records, claims history, vehicle and intent of purpose. So all these variable do reflect the uniqueness in the premiums too. No two companies may do their calculations alike. But all insurance providers have to comply with regulations as per auto insurance in Ontario while ratifying the premiums.
In Ontario, there is no special category given to a pleasure vehicle. The insurance premiums calculated for pleasure vehicles are rated lower than those for work commute. This is due to the fact that pleasure vehicles are driven much less when compared to the other vehicle that the driver uses on a daily basis. As per insurance companies, spending more time on the road translates to a higher risk of getting into an accident or violation. The duration on the road during day and night also makes a difference to the driving habits and road environment. This could be a major reason for insurance companies to lower the insurance premium rates. Each insurance company may give different variations in discount for pleasure vehicles.
How Could You Lower Premiums On Pleasure Vehicles
Most drivers, who do have a second pleasure vehicle, try to maintain just the minimum coverage and omit the options of collision and comprehensive coverage. Others may add the optional coverage but choose a higher deductible. The logic behind this math is that the probability of a claim is lower as the pleasure vehicle is used less frequently. And the premiums would be lower when the deductible is increased. In Ontario, the minimum deductible for collision is $500 and could be increased if the insured wishes to. Also, if you have changed the intention of usage of a car from commuting for work to just driving occasionally, it might be a good idea to notify your insurer. This could lower your premiums.
There are other strategies that could be used to reduce car insurance premiums for a pleasure vehicle. Building a safe clean driving reputation with no claims history could be to your advantage. Lowering annual kilometers and trying not to allow your vehicle to be borrowed by high-risk occasional drivers is recommended. Also, not including those risk-prone drivers on your insurance policy could help you to some extent to avert the risk of a premium increase.