In light of the recent Coronavirus, the UK Government has announced stringent restrictions upon our daily lives. A pivotal method of combatting the spread was to impose travel restrictions that limit people to solely leave their house for the purpose of shopping for basic necessities, alongside other measures.
The effort to halt the spread seems to be working on driving behaviour in the UK; based on the latest data, the miles driven by our customers have reduced by 69% between 1st March and 31st March*. This illustrates that drivers are following Government guidance – it is a collective effort to stop this virus, and we applaud all of our customers who choose to travel less, for the greater good.
However, there is much uncertainty around when travel restrictions will be lifted, which will cause people to review their need for both their car and its car insurance. Naturally, customers want to save money wherever possible, especially so when redundancies and lay-offs have impacted tens of thousands all around the nation.
We understand this entirely, and are here to help you in these unprecedented times; therefore we take a look at what methods we can use to support you, whether you choose to cancel your policy, or are having trouble finding the funds to continue keeping your car insured.
So, we take a look at important matters to think through before you decide to make a decision about your car insurance policy.
Should I cancel my car insurance because of the Coronavirus?
- Firstly, it’s a legal requirement to have the minimum third party insurance on your car, even if it’s parked up. Your car must stay insured, unless you officially declare it is off the road and make a Statutory Off Road Notification (SORN) to DVLA.
So, if you are planning to keep your car unused and cancel your policy, please be aware of the implications – your car may be seized or crushed, so we would recommend storing it off the road and somewhere safe.
- Secondly, your insurance policy doesn’t only cover you on the road, it also protects you from theft, fire or malicious damage. Even if you’re planning to keep your car in a garage, it’s still important to be covered for unexpected incidents.
Cancelling your car insurance policy may appeal to you for saving money, if you have somewhere to store it, however, you will have to fork out expenses yourself if it gets damaged.
- Remember, there are instalment plans available if you can’t pay your full annual premium at renewal.
Most insurers offer instalment plans to help customers spread the cost of their policy over the year.
Having car insurance is a legal requirement to drive, or to keep your vehicle on UK roads, so please be aware of the dangers involved in cancelling it, and consult our tips in the previous sections.
If you want speak to an adviser at insurethebox, please contact 0333 103 0000 or use our Live Chat.
*Driving data of all Insure The Box Limited policyholders between Jan 1st 2019-March 31st 2020