Car insurance UK: Drivers able to make savings as firms offer ‘financial support’

Car insurance UK: Drivers able to make savings as firms offer ‘financial support’

This means that many car insurance customers can make tweaks to their policies without fee or risk of suffering any heavy losses.Experts at uSwitch have urged customers that it could be worth going to firms to waive these fees and make changes which could reduce costs.

They specifically highlight how road users can update their mileage details to reduce their perceived road risk and therefore lower charges.

They warn that if your car is due for renewal, it is worth recalculating mileage based on how much you have driven in 2020.

This is expected to be wildly different from the mileage predictions submitted at the start of last year before the lockdown was considered.

This is especially the case for road users who may have been forced to work from home for long periods and give up a long daily commute.

READ MORE: Car insurance customers can ‘cut the costs’ of a policy today

“So if you want to recalculate your mileage, it could be worth giving them a call to waiver the amendment fee.
“If you have a record of your mileage from the last time you applied for cover, you could use this to calculate the difference used this year.

“If you don’t, you can always sum up how far you’ve travelled each day on average to get a rough estimation.”

MoneySavingExpert Martin Lewis has previously urged road users to take advantage of the sudden cut in cancellation and amendment fees to their advantage.

He revealed it was a great time for customers to shop around and switch for a new agreement as drivers would not be liable for costs.

Switching mid-agreement would result in heavy cancellation costs but under current measures, drivers can swap completely free of charge.

He has urged drivers to switch policies regularly to get the best deals after revealing they may suffer auto-renewal penalties.

This is because firms offer their best deal to new customers and gradually increase charges for those already on their database.

However, a new measure from the Financial Conduct Authority (DFCA) is aiming to cut out this policy.

The FCA has stated that customers should not pay more than they would if they were new to the provider through the same sales channel.

The FCA has identified six million policyholders were paying high or very high margins in 2018.

They revealed that on average drivers may have been overcharged up to £1.2billion by insurance firms.

This new campaign could mean that drivers no longer need to renew their policies regularly and switch providers to avoid extra costs.

However, for the time being, this is still the best way to ensure drivers make the highest savings on car insurance costs.

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