Everybody has made changes to their daily routines and movements each day. With the nation staying at home, the roads clearer than they have ever been as most people are hardly using their cars. Car insurers have reported a 50% reduction in car insurance claims during lockdown. The government have also reported that driving is down by a whopping 75%. However, do the usual rules about updating your car insurance to any driving changes that still apply? We take a deeper look into your car insurance questions during this current health crisis.
My MOT has been extended. Is my car insurance still valid?
If you have been entitled to a MOT certificate extension, this means that you are still effectively covered by your last MOT. With your MOT still valid, insurance policies will continue to be valid till their renewal dates during the six-month MOT extension. However, it is still important that car users keep their cars in road worthy condition. There are many car garages that continue to operate during this time for emergency repairs, so it is important to maintain the safety of your vehicle.
Can I get a refund on my car insurance if I’m not using my car?
It is not a requirement for car insurance providers to provide a refund on your policy, despite the reduction in your car usage and the reduced risks.
Admiral are the first UK insurer to offer their customers a cash refund for the reduced level of car usage in the current circumstances. They have stated that all their car or van insurance policyholders that were actively insured with Admiral or their associated brands on 20 April 2020, will each receive a £25 refund. This is a whopping 4.4million drivers set to receive the refund. Admiral are also waiving the any motor excess claim fees for emergency service workers, and also providing a free courtesy car if theirs is stolen or badly damaged to enable them to continue to travel to work.
Will my car insurance premium be reduced?
As mentioned above, there is no requirement for car insurers to reduce or recalculate premiums automatically, but you could contact your provider to update your yearly mileage to a reduced amount, in line with no longer commuting. This could trigger your premium to be reduced.
Another option to save money on car costs during this time is for those who are not using their cars at all. If your vehicle is no longer on the road you could declare your vehicle off road completely with a Statutory Off-Road Notice (SORN). This application can be made directly to the DVLA which could result in you receiving a tax refund. However, when your vehicle is declared as SORN you are not allowed to drive the vehicle again until you inform the DVLA and tax your vehicle.