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“They’re locked into annual car insurance contracts because there aren t viable alternatives and are then penalised if their circumstances change and they end a policy early.
Cuvva has urged road users to ask an insurer to list all the additional costs associated with a policy before they sign up.
It warns a policy may look like a good deal but added fees can add up to be a lot more expensive than first imagined.
It urged road users to consider more flexible car insurance policies which do not charge fixed cancellation fees.
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A flexible policy means drivers are not tied down to a fixed contract and can leave at shorter notice.
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Compare the Market said they had witnessed a few insurance providers offering money back to drivers and other goodwill gestures during the pandemic.
They said any firms offering this would get in touch directly with any motorists affected.
Mr Fulthorpe added “partial refunds” had been offered by some firms due to a “significant decrease” in car use.
He told Express.co.uk: “In light of the pandemic, some insurers offered a partial refund to their customers due to a significant decrease in the use of vehicles and time spent on the road.
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“For example, Admiral paid back all of their car insurance customers a flat fee of £25, LV also offered a refund customers could apply for should they have been financially affected by Covid.
| UPDATED: 07:54, Fri, Feb 19, 2021
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They warn insurance providers could offer drivers a “pro-rata premium refund” if they have driven less than they were expected to. However, road users should keep an eye on any “administration fees” to ensure updating their details in the hope of a refund will not see costs rise.
Car insurance costs vary between each region (Image: Express)
He said “While insurers could not have predicted the unprecedented impact of coronavirus, customers will not appreciate it if they feel firms are benefiting at their expense – or if they are being left without support at a time of need.
“Our research shows that many insurance customers are struggling with their premiums as a result of the pandemic, but up to a quarter of these people have received no support whatsoever.
“The FCA rightly proposed guidance for firms to support customers struggling due to coronavirus, but it’s concerning that the regulator is no longer requiring insurers to proactively contact those who miss a payment.