Car insurance premiums can be reduced during coronavirus lockdown with these simple tips

Car insurance policyholders can decide to take their car off the road or cancel a policy to make savings during the lockdown period if they are not using their car. Motorists may also decide to alter their contact to bring down prices such as changing their estimated mileage and class of use. 

READ MORE

• Car insurance firm Hastings denies profiteering through coronavirus

Reducing a level of cover means motorists still have a policy in place and can use their car for essential journeys. 

However, long periods of time at home are expected to decrease your estimated yearly mileage which may be altered to bring costs down. 

Temporarily changing your level of cover may be vital if you are using your car differently than normal may also affect your pricing. 

This may be a vital change for commuters who are now working from home and therefore spending less time on the road.

Car insurance policy costs are estimated based on your overall perceived risk of having a crash and claiming on a policy. 

Driving more miles and using your car more regularly is likely to increase prices which may lead to higher costs for many. 

With the lockdown reducing journeys and reducing the risks involved, some motorists could make major savings with a few simple tweaks. 

In a statement to Express.co.uk, a Hastings spokesperson said: “Customers who are driving less, or not at all have various choices which we are supporting. 

“They have the option to reduce their level of cover, or report lower mileage or a change of use, e.g. no longer commuting.  

DON’T MISS
Your car insurance could be invalidated without even knowing  [ANALYSIS]
Motorists can lose car insurance and be fined for this mistake  [ADVICE]
Panic buying can invalidate car insurance [INSIGHT]

“We are updating premiums and refunding any overpaid amounts and also waiving our normal fees for these changes where related to COVID-19.”

Hastings also confirmed motorists may decide to completely cancel their policy and declare their car as off-the road (SORN). 

If you SORN a car you will be unable to use it for any essential journeys except for driving it to and from a pre-booked garage appointment. 

Failure to follow these rules may result in motorists being hit with penalties such as fines or points on a driving licence. 

READ MORE

• Car insurance companies are warning drivers about speeding

However, this will result in zero costs for motorists during the coronavirus lockdown and may be ideal for those making no journeys at all. 

This is also a great option for motorists who have purchased a second car which they very rarely use on the road. 

A Hastings spokesperson told Express.co.uk: “If a customer wants to stop using their car entirely, they have the option to make a statutory off road notification (SORN) of their vehicle and cancel their policy. 

“Any overpaid premiums will be refunded as appropriate and the cancellation fee will be waived.”

Hastings confirmed many factors can contribute to a rise in renewal premiums and would look into specifics for customers. 

The group said it was too early to assess the impact of coronavirus on the business but did not rule out further price increases. 

They confirmed costs would not be passed onto customers immediately but could not rule out an increase after the outbreak ends. 

Speaking to Express.co.uk, Hastings said: “It is still too early for us to assess the full impact of COVID-19. 

“Taking account of the possibility of an increase in driving once the lockdown ends, and potentially higher claims costs due to repair network challenges or lack of availability of parts. 

“However, we will monitor this closely and, in addition to what we’ve already done, will make further changes for customers’ benefit depending on the eventual outcome.”

Source: Read Full Article