Are you struggling to afford your car insurance during lockdown?

Are you struggling to afford your car insurance during lockdown?

If so – help is at hand 🙂

Financial help announced for any drivers struggling with car insurance payments

If you’re in financial difficulty due to coronavirus you could receive help from your insurer.

The Financial Conduct Authority (FCA) has encouraged insurers to reassess insurance policies if the policyholder is in financial difficulty.

If you’re struggling to pay for your insurance due to the pandemic, contact your insurer. They’ll be able to give you specific advice based on your situation. You should never leave yourself uninsured.

You’ll be able to ask for help from 18 May to 18 August 2020.

If you ask your insurer for help, they will consider providing the following options:

✓ Reassessing your level of risk; for example, you might be driving less due to lockdown
✓ Reviewing your level of cover
✓ Waiving cancellation fees, or any fees associated with amending a policy.

These temporary measures could help to bring down your monthly payments. Or if you’ve paid upfront you could receive a refund.

If these amendments don’t reduce the premiums, the FCA is also encouraging insurers to defer the payments for a period of 1-3 months. Some insurers may choose to extend beyond 3 months. This depends on what’s best for the policy holder.

If the insurer can’t offer these options, they could still provide support by:

✓ Accepting reduced repayments or rescheduling the payment dates
✓ Waiving missed or late payment fees
✓ Allowing a customer to amend their repayment date at no cost.

Sheldon Mills, Interim Executive Director of Strategy and Competition at the FCA, commented:

“As with other areas of finance, we have worked quickly to draw up measures to help policyholders in financial difficulty because of coronavirus. The majority of respondents expressed support for the proposals we published at the start of May. Many firms in the insurance industry have already taken some of the actions we are suggesting here to support customers, such as premium reductions, discounts, waiving fees, and payment deferrals. The measures confirmed today will provide urgent support to those that need it.”