Car insurance policyholders could be unnecessarily ‘paying out hundreds’ for cover

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Car insurance providers aim to sell long term deals to road users to guarantee a fixed income while road users often secure this to endure if they are covered for a whole year. However, in some circumstances, this may not be the best policy for a motorist especially if they are planning on using their cars only some of the time.

Experts at Cuvva have warned drivers should never “tie” themselves to a policy that does not match their lifestyle.

They urge drivers may be better sharing a vehicle or securing a temporary insurance cover which could be cheaper.

Freddy Macnamara, insurance expert at Cuvva said motorists ist think about how much they will use a car before signing up to any long term agreement

He said: “You should never tie yourself down to a policy that doesn’t suit your lifestyle.

“Often drivers end up paying out hundreds more than they need to, by paying for long term policies they simply don’t need.

“Think about how much you’ll actually be using your car. You might be better off sharing your partner’s or friend’s car and getting temporary insurance on an ad-hoc basis instead, as it could work out a lot cheaper in the long run.”

Experts at pay as you go insurance firm By miles has previously warned that 11 million UK workers could make savings on their regular payments.

This is because many firms have embraced the work from home culture with many drivers set to make fewer journeys than they were pre-lockdown.

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Phil Ost, car insurance expert at Zurich has also urged drivers to look for on-demand car insurance cover.

He said it was vital insurance firms needed to “adapt” to changing habits with motorists set to save “significant amounts” through buying short term cover.

He even claimed that giving extra incentives to those that travel fewer miles could push drivers to make fewer journeys and help pollution issues in some areas.

Mr Ost said: “We are seeing a real shift in drivers’ needs and behaviours across the UK and the insurance sector needs to adapt to their new habits.

“With a significant proportion of the UK workforce now working from home, motorists should certainly consider on-demand cover when shopping around for car insurance at renewal, as they may find that it saves them a significant amount over the year.

“And in incentivising those who drive fewer miles, we do our bit for the planet and sustainability.”

Go Compare says temporary insurance agreements could be good for younger drivers to help them avoid paying extortionate monthly sums.

Many youngsters may leave their cars at home during the university term while still paying heavy fixed costs.

They say drivers could take out a short insurance policy to cover use while on summer holiday meaning they can enjoy some freedoms without paying heavy charges all year.

Short term agreements can cover motorists from one hour up to 30 days with drivers able to pay per day if they wish.

Drivers can secure temporary agreements instantly with many policies offering fully comprehensive cover.

The RAC says most agreements offer a range of extra perks such as accidental damage, new car replacement and accident recovery services.

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