Car insurance premiums can be costly and many motorists may be paying charges for an agreement they do not need during the shutdown. A predicted drop in the number of claims being made has already seen some car insurance experts predict that firms could be set to make £1billion due to the crisis.
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Motorists urged to ‘take advantage’ of car insurance savings
Go Compare car Insurance expert, Mark Greening, says cars may seem like “expensive decorations” due to their lack of use under the shutdown.
He has advised motorists can reduce costs through simple changes such as lowering their estimated mileage and even reducing their level of cover.
Speaking to Express.co.uk, he said: “During the COVID-19 lockdown, millions of cars across the UK are sitting outside homes going nowhere.
“With no set timescale for when lockdown will be over, our cars can currently seem like expensive decorations instead of useful forms of travel.
“While you might already be saving on fuel, we’ve got more ways for you to cut back on your car’s expenses.”
Speak to your car insurance provider
Mr Greening says motorists should talk to their car insurance provider as soon as possible as they may help you during financial need.
Under new guidelines from the Financial Conduct Authority (FCA) insurers must be fair to motorists suffering during the crisis and offer a range of policies.
This may see some on an annual agreement offered some sort of refund while monthly policy holders could see premiums reduced.
Payment holidays are also being offered by firms with motorists able to freeze payments for up to three months if they are struggling.
Mr Greening told Express.co.uk: “Lots of finance providers are offering payments breaks during lockdown, and car insurance providers are no exception.”
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Lower your predicted mileage
GoCompare says predicted mileage might be a lot lower than the figure you previously stated when you first took out a policy.
Motorists will be able to calculate and reduce their mileage costs under which will allow road users to secure reduced premiums.
The FCA have said firms will waive all administrative fees which may usually be incurred through changes to a policy meaning no charges will apply.
Reduce your cover
Under the FCA’s new changes, firms will review each motorists policy to see whether there are other products which could save customers money.
This means your level of cover could be reduced from a fully comprehensive agreement to a third party fire and theft policy during the lockdown.
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There will be no charge for updating the policy but GoCompare has issued a warning to those considering the changes.
They say updating your level of cover could backfire as motorists may not be covered in future accidents.
Mr Greeniung said: “Lots of finance providers are offering payments breaks during lockdown, and car insurance providers are no exception.”
Take your car off the road
Motorists can apply for a statutory off road notification (SORN) during the lockdown in the simplest way to save the most money.
This cancels an agreement and means you will not have to pay any car tax or insurance costs
Motorists will not be allowed to use their car for any trips other than visiting a pre-booked garage appointment and could face police fines for breaking the rules.
But Mr Greening warned: “This will mean you’re not covered at all, not even for any damage that happens while your car is parked up.
“It might be worth getting cover for damage, fire and theft, just in case.”
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