Car insurance experts reveal new five-point plan to save money on expensive policies

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Car insurance customers have been urged to follow a range of simple tips such as asking for deferred payments and cutting down their mileage. Drivers have also been advised they can reduce their level of cover or could even take their car off the road temporarily to stop payments altogether.

The simple guide put together exclusively for Express.co.uk readers has been designed to ensure drivers never pay more than they need to be.

Lee Griffin, CEO and founder or GoCompare told Express.co.uk: “In response to the ongoing crisis, the Government, regulators, insurers and other financial organisations have put temporary financial and practical measures in place to help motorists.

“We’re pleased to see that the real need to provide motorists with continued support has been recognised with the automatic extensions to expiring driving licences and the continuation of supportive measures from insurers.

“But it is important that drivers keep on top of these changes as well as understanding their responsibilities and the help available to them.”

Talk to your provider about your cover

Go Compare says drivers should first contact their insurance provider if they are struggling to meet their payments as a result of the pandemic.

Drivers should ask what help is available with insurers offering payment deferrals for those in need.

A spokesperson for Go Compare says other options are also available with firms not charging for making simple adjustments to help customers.

Change annual mileage

Car insurance premiums are partly calculated on the number of estimated miles driven over a year.

However, drivers’ estimated mileage may be inaccurate in 2020 as many workers have been forced to work from home and holidays were put on hold.

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There may be a situation where drivers have estimated a higher mileage than they will cover meaning drivers could argue for a reduction in charges.

Go Compare says there is unlikely to be an administrative charge for doing this which is an extra added bonus.

Reduce your car insurance cover

Go Compare says drivers can consider reducing the level of cover from a fully comprehensive agreement to third-party, fire and theft cover.

This will likely reduce your premiums as you are paying for a limited-service and are covered for less.

However, experts at Go Compare warn drivers could suffer an unwanted consequence by making this simple change.

A spokesperson told Express.co.uk: “Remember though, if you lower your cover level and then incur accidental or malicious damage, you will not be covered.

“Confirm with your insurer that there will be no administrative charge for doing this.”

Declare your car as off the road

Drivers who are paying for cover on second vehicles could decide to apply for a Statutory Off-Road Notification (SORN).

Insurance does not need to be paid at all on cars which are off the road meaning that drivers will be able to save completely on their policy costs.

However, Go Compare has warned that some drivers may wish to keep some form of limited agreement in place to ensure they are covered in emergencies.

A spokesperson told Express.co.uk: “But beware, this would mean that you will have no insurance cover at all.

“You may still want cover for fire and theft (sometimes called a ‘laid-up’ policy).”

For more informatiomn visit Go Compare. 

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