Martin Lewis – In the wake of the coronavirus epidemic, several auto insurance firms have committed to support poor drivers. From Wednesday 13 May, insurance providers are required to encourage consumers to postpone payments while retaining their cover.
Some companies also offer payment holidays or the option to reduce payments temporarily to help control their finances.
The Financial Conduct Authority (FCA) says payment holidays will last between one and three months, but its new guidelines do not limit firms to go further in supporting clients.
The FCA has also told insurance firms that during the Covid-19 pandemic they must ensure that general policyholders get value for money.
Due to the lower number of claims made by motorists, concerns were highlighted after analysis revealed that some firms could make up to £1billion during the global crisis.
Birmingham Mail reports Martin Lewis, an expert in money-saving, has issued some key advice for anyone with a car sitting on the driveway considering canceling car insurance.
The founder of MoneySavingExpert.com said: “The difficulty is we don’t know how long lockdown will last.
“If it’s just weeks, this’d be a faff for a small saving; yet, if you don’t think you’ll drive much anyway even when the rules relax, then, for example, if you’ve two cars and are only likely to use one, it could save you cash,” he added.
But the financial guru also warned motorists: “Do remember if you’ve no car insurance, your car isn’t covered for damage or theft.”
Even if you are not driving at all because of lockout measures, because you keep your vehicle on private property, you would have car insurance, which means you will need to have a mandatory off-road notice (SORN) to save insurance and road tax cash.
Failure to amend a policy would mean road users are not permitted to use their vehicle for any journey except for a pre-booked garage appointment-violation of regulations comes with a fee of up to £2,500 and even prosecution possible.
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