Drivers have ‘money sitting on their driveway’ and can ‘get money back’ on car insurance
Morning Live: Expert shares tips on car insurance
Car insurance customers could “get money back” today by simply updating their mileage details with their provider. Speaking on BBC’s Morning Live, finance expert Emmanuel Asuquo said drivers who “haven’t driven as much” could be liable for instant refunds.
He warned for many drivers car insurance premiums were agreed based on a pre-determined mileage before lockdown.
However, drivers may not have met this target as they cut down their travel when the pandemic hit.
Mr Asuquo said: “I call this there’s money sitting in your driveway,
“For a lot of us when we took out our insurance we said how many miles we thought we were gonna do.
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“However we’ve been on lockdown and a lot of people haven’t been out, haven’t been driving as much,
“So if you haven’t driven as much you could get money back.
“All you have to do is call your provider, let them know how many miles you think you’re going to do.
“And then if it’s below what you agreed in the beginning there could be money back.”
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DirectLine has confirmed it is offering some discounts for drivers who took out a policy before August 2020.
However, it confirmed those whose agreements started on or after 1 August 2020 would not be eligible for a premium refund.
DirectLine said it was not offering refunds while the current local restrictions remained in place but it was continuing to monitor the situation.
Churchill also confirmed drivers who took out a policy before August 2020 would be the only ones liable for help.
Last month, consumer watchdog Which? warned only one in five drivers received any premium refunds from their car insurance provider as a result of the restrictions.
Almost half of those surveyed by Which? saw a major decrease in their annual mileage but only a fraction saw any changes in premiums.
Just 31 percent said they had seen part of their premium paid with many feeling they were paying more than they should be for cover.
Harry Rose, Editor of Which? Magazine said their research shows many drivers were “struggling with premiums”.
He said “While insurers could not have predicted the unprecedented impact of coronavirus, customers will not appreciate it if they feel firms are benefiting at their expense – or if they are being left without support at a time of need.
“Our research shows that many insurance customers are struggling with their premiums as a result of the pandemic, but up to a quarter of these people have received no support whatsoever.
“The FCA rightly proposed guidance for firms to support customers struggling due to coronavirus, but it’s concerning that the regulator is no longer requiring insurers to proactively contact those who miss a payment.
“Customers missing payments are likely to be vulnerable, and firms should be doing everything they can to engage with and support those who need it most.”
However, the Association of British Insurers (ABI) has claimed the average cost of comprehensive cover is at a four year low of £460.
The ABI said insurers continue to give extra support to motorists including automatically extending cover.
They said any adjustments or refunds was a matter for individual insurers to offer to customers.
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