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GoCompare urges drivers to contact their insurer now if they are worried about paying premiums
Leading car insurance comparison site GoCompare is urging drivers who are concerned about paying their car premiums to contact their insurer as soon as possible, rather than wait for a refund.
The comments follow Admiral’s decision to refund £25 to car insurance customers. According to GoCompare, other insurers may not rush to follow, but might still be able to offer more practical help.
Lee Griffin, CEO and one of the founders of GoCompare, commented, “Most people are using their cars less at the moment, therefore insurers’ claims costs should reduce. However, insurers will also be looking at the bigger picture here. They cover drivers for 12 months and, depending how long the lockdown lasts, the total mileage most drivers do over that 12-month period may well end up being broadly the same as expected, or only slightly down. As a result, other insurers may not rush to follow Admiral’s lead.
“We also need to keep it in context. A flat £25 off an average annual car insurance bill of £751 represents a 3% discount. If your insurance is £1,200 a year, it is only 2%.1.
“While it is welcome, anyone who is struggling financially at the moment shouldn’t wait for their insurer to offer a refund. Many insurers are already helping individuals with payment deferrals or enabling them to reduce their stated mileage to get a lower premium or change to third party, fire and theft cover, if it is appropriate.
“The other important thing to check is your insurance renewal date. We expect some insurers will look to reduce their new business premiums in the next few weeks as a result of the lockdown, as a way to attract new customers. If that is the case, there could be some very significant savings for customers who shop around and switch at renewal.
“Currently, the average GoCompare Car Insurance customer saves up to £283 by switching provider.2. We would encourage any car owner to make a note of their renewal date this year and set aside some time to shop around. It only takes a few minutes and it could save you far more than £25.”
GoCompare has provided a five-point plan for anyone worried about paying for their car insurance at the moment:
- Speak to your current insurer as soon as possible and see if there is anything they can do to help in terms of reducing or deferring premiums.
- Look at lowering your stated annual mileage to see if it reduces your premium. Check with your insurer that there will be no administrative charge for doing this.
- You could reduce your cover level to third party, fire and theft to see if this lowers your premium. Remember though, if you lower your cover level and then incur accidental or malicious damage, you won’t be covered. Again, check with your insurer that there will be no administrative charge for doing this.
- If you can keep your car off the road temporarily, then you could SORN the vehicle. 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).
- Check when your insurance renewal date is. If it is due shortly, shop around to see if you can get the cover you need for a much cheaper price.
For more information on Coronavirus and your money visit: https://www.gocompare.com/coronavirus-insurance-money/
For further information please contact:
Anders Nilsson or Louisa Marsden at GoCompare on 01633 654 054 / 01633 655 132
Gordon, Jason or Liz at MAW Communications on 01603 505 845
Keep up-to-date with GoCompare on Twitter; @GoCompare
Notes to editors
1. Average cheapest premium from GoCompare customers searching in March.
2. 51% could save up to £283 on car insurance based on independent research by Consumer Intelligence, conducted between 1 March to 31 March 2020.
GoCompare is a comparison website that enables people to compare the costs and features of a wide variety of insurance policies, financial products and energy tariffs.
GoCompare does not charge people to use its services, and it does not accept advertising or sponsored listings, so all product comparisons are unbiased. GoCompare makes its money through fees paid by the providers of products that appear on its various comparison services when a customer buys through the site.
When it launched in 2006, it was the first comparison site to focus on displaying policy details rather than just listing prices, with the aim of helping people to make better-informed decisions when buying their insurance. GoCompare has remained dedicated to helping people choose the most appropriate products rather than just the cheapest, and has teamed up with Defaqto, the independent financial researcher, to integrate additional policy information into a number of its insurance comparison services. This allows people to compare up to an extra 30 features of cover.
GoCompare is the only comparison website to be invited to join the British Insurance Brokers’ Association (BIBA) and is authorised and regulated by the Financial Conduct Authority (FCA).