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Car insurance experts have urged road users to contact their policyholder to recalculate their costs. Experts from By Miles warned that it was only fair that road users who were using their cars less should be paying less for their premiums.
They warned that some families with multiple cars could be overpaying heavily on their terms at a time when many were struggling financially.
James Blackham, CEO of ByMiles warned that many road users have seen their mileage “drop steeply” from their initial estimates and action should be taken.
He said: “Many have seen their mileage drop steeply from the estimates they gave their insurer at the start of their policies.
“If you’re driving less, you’re far less likely to make a claim, so it’s only fair that you should be paying less.
“This is especially important just now, with many people across the country struggling financially.
“For families with more than one car, the overpayment will be hitting them for each car they insure, making it costly for households with multiple cars parked up that they’re not using.
“Fortunately, there are some simple steps drivers can take to reduce their premiums.
“Contact your insurer to update them on your new mileage figures and ask to have your premiums recalculated.
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“Insurers should be waiving admin fees for these types of policy changes, which makes it that little bit easier for people to see if they can make savings due to their changing personal circumstances.”
Compare the Market says that a driver’s annual mileage predictions are one of the main factors used to calculate costs.
They confirmed that overestimating mileage will see drivers paying more for cover than they need to.
However, the Financial Conduct Authority’s (FCA) general insurance pricing practices report revealed insurers have not changed their practices despite the pandemic.
The FCA said that although drivers have been impacted by a reduction in mileage, this has not “fundamentally changed” the way in which firms set prices.
The agency has revealed that “action is still required to address the hams” with the group confirming they will continue to monitor the market.
With uncertainty over a second lockdown, Mr Blackham has called for insurance firms to “act responsibly” to ensure drivers were not charged higher.
He adds: “With a circuit-breaker lockdown on the horizon, and residents in the North already in local lockdowns, we’re calling on car insurers to act responsibly to make sure drivers are getting value for money from their insurance.
“If you’re not using your car as much as usual due to lockdowns, movement restrictions in your area or your personal circumstances changing over the pandemic, then there could be an opportunity for you to save money on your car insurance.”
Mr Blackham has previously pushed car insurance firms to offer refunds to customers who have driven fewer miles than what their policy has demanded.
He has also suggested a drop in claims would see firms make an extra £1billion during the lockdown.
The FCA has confirmed that firms will help drivers who are struggling with car insurance payments.
Financial support can include payment deferrals or to reduce the level of cover offered to drivers.
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