The coronavirus lockdown has left many households living on significantly reduced incomes.
As a result, millions of drivers are struggling to meet the cost of running their car, while a significant minority (4% = 1.3 million) say they will be forced to sell their vehicle.
GoCompare Car Insurance is offering practical, actionable advice to drivers concerned about meeting monthly finance or insurance costs.
GoCompare found that the main costs of owning and running a car; including servicing, insurance, and finance payments; were causing anxiety for many motorists, with young drivers6 being the most affected.
The survey asked car owners how the coronavirus lockdown has impacted their ability to run their vehicle.
GoCompare Car Insurance’s six-point plan for car owners in financial difficulties as a result of Covid-19:
- If you have a finance arrangement for your vehicle, talk to your provider as soon as possible as they should be able to offer you a payment break of up to three months.
- Speak to your insurer 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, or for reverting to normal post-lockdown.
- 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 so you needn’t tax or insure it. But beware, this would mean that you will have no insurance cover at all. You may still want cover for damage, 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.