During the Coronavirus crisis, many things have been put on hold. However, the financial implications relating to our cars most likely have caused added stress. According to Watchdog, it is implied that car insurance firms must waive fees and allow delayed payments. It is mandatory for insurance companies to offer some leeway for those suffering during the pandemic. Any type of financial difficulties bestowed upon customers during the pandemic have a domino effect across the board, which is why the FCA (Financial Conduct Authority) have set out new rules. Insurance companies must adhere to this and change their policies and operations accordingly. Any outstanding cancelation fees must be waived and leniency relating to late fees must be implemented. They must reassess customers’ risk profiles and look at the possibility of lowering their premiums during these difficult times. The Coronavirus crisis does not have to have a negative impact on us, with the added aid from our insurance companies, there will be full access to new policies and financial assistance. A positive turn and a beneficial change for all drivers.
It has also been said that these companies must offer high quality advice to those who would like to revise their cover. Whether this is downgrading from a full comprehensive policy to a third party one; which will ease the burden of financial stresses with month to month payments. These new requirements will force companies to reduce the payments of any customers who pay monthly via a direct debit or other. This could result in the customer receiving a partial refund for any costs they have paid for in the previous few months, or for those who pay the full annual premium.
Am I Entitled To Defer A Payment?
Yes. A company can choose to defer a customer’s payments for more than three months in the best interests of their customers and this is something you are within your rights to ask for. Deferred payments will be considered if no amendments can be made to the existing cover, and it may also be possible to pay a reduced rate month by month instead if you find yourself in financial difficulty. There should also be a waiving of missed or late payment fees, should the customer fail to pay on time or if their direct debit has not been approved because of inadequate funds. You are encouraged to contact your insurance company to ask them about their assistance.
An additional policy that has been implemented during the CoronaVirus crisis is reviewing interest rates. This will allow customers to receive fair payments as changes to wages have most likely been affected. Insurance companies are encouraging all their customers to speak to one of their team members relating to their financial difficulties and asking them to come forwards with their worries relating to paying their fees. These measures have now come into effect and have been implemented since May 18 2020. If you have any problems feel free to get in touch with us today.