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COVID-19: Reducing insurance costs due to lockdown


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Which? has recently highlighted two areas where owners may be able to reduce their insurance costs due to lockdown:

1. Reduce your annual mileage

Tell your insurer how much less you will be driving this year due to the crisis. Depending on how often you drive, this could already be a lot lower than usual. Let’s say that a driver normally commutes 15 miles each way to a place of work on weekdays – so 30 miles per day. If this stops, over 60 days (roughly two months of lockdown) that’s a reduction of 1,800 miles.

2. Remove second drivers

If one of your policy’s named drivers is no longer driving at all, let your insurer know, to get them removed.

 

Just be aware of any costs the insurer may charge for making changes mid-policy, so check first. Which? contacted some major insurers to ask their approach to reducing costs for customers in this way:

Admiral; refunding £25 to every policyholder. However adjustments to policies may still incur a £9.50 fee.

Aviva; can adjust mileage for free either online or via app. Also free over the phone, but only if you cannot use the web or the app.

Axa; monthly mileage can be reduced to reduce premiums via online accounts

Direct Line; can change mileage using virtual assistant for potential premium reduction. Adjustments are fee free.

Hastings; Customers can get in touch to report changed circumstances, and premiums will be recalculated with the usual fees waived.

LV; Encouraging customers to contact it to temporarily change cover. Where possible, not charging for admin or cancellations and waiving excesses. 

More Than; Customers can make fee-free changes to policy details.

NFU; Customers can make free mid-term adjustments to change circumstances, which may reduce premiums.

 

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Quote

If one of your policy’s named drivers is no longer driving at all, let your insurer know, to get them removed.

Not necessarily true.  Some insurers increase the premium for single users.

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12 hours ago, Roy124 said:

Not necessarily true.  Some insurers increase the premium for single users.

Correct, especially if the second driver is older than you. 

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Which? highlighted areas where owners may be able to reduce insurance premiums and haven't said that premiums will be reduced. So the information is still valid.

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I contacted saga as I am hardly using corolla they said no refund of premium, but they would not charge a admin fee normally £25! If I wanted to make changes to policy due to covid big deal!

have decided to go back to direct line much cheaper premium and they will refund if you drive less than stated mileage.

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On 2/3/2021 at 7:44 PM, Roy124 said:

Not necessarily true.  Some insurers increase the premium for single users.

My insurance companies over a long period of time have all intimidated that naming my spouse, who is also a car owner may give me a slight discount.

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I got my quote in the mail, it had gone up a lot. I did nothing at all.

About 2 days before it was due to expire i had a call from the insurance company, they asked why i hadn't renewed. I just said "I've hardly driven it due to Covid and i thought the price increase was a bit of an insult". The guy on the phone then dropped it to a bit below the previous year's quote.

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I recently had to renew my insurance so I called my ins co to see if they'd amend my quote to my now limited mileage of 00,000 pa (ie.Zero-but I still wanted a policy in force) and to my surprise the quote then increased!!!

In explanation the operator said, "well if you're not using your car as a driver regularly you're perceived to be a greater risk!! !!"

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