The UK is going through a difficult financial period at the moment and has been from around when COVID-19 happened but the situation has got worse for many people here in the UK due to high inflation. Many household bills have gone up such as food and utility bills and on top of that interest rates have been rising for many months with mortgage repayments increasing. This has put many households under financial pressure with some having to ‘rob Peter to pay Paul”. So what should you do if your car insurance premiums become unaffordable?
Well, you will no doubt be well aware that it is a legal requirement that if you want to drive your car on the public road system here in the UK you must make sure that you have car insurance in place. If you haven’t then the consequences would be potentially severe. For instance, you could get points on your driving license, be fined, be banned from driving to name but a few things.
So, if you are struggling to pay your monthly car insurance premium then pick up the phone as soon as possible and speak to your insurance company. Are they able to change the date that they claim the premium by direct debit to a more suitable date i.e. the day after you get paid? Are they able to offer you the same level of cover but at a lower premium? Can they remove one or more of the optional extras to reduce how much you are paying for your cover?
Will changing the level of cover result in a lower premium but do check if there is a fee for making such an alteration to your policy.
You could use the likes of a price comparison website to see if you can get the same level of cover but at a lower cost but do check if and how much the penalty would be that your existing insurance company would charge as a one-off fee if you were to leave them.
If you have previously paid annually but are going to struggle to fine a year’s premium all in one go then find out how much it would cost to pay monthly. Overall, by paying monthly, the total amount you would end up paying over a year is almost certainly going to be higher than if you paid annually as when paying monthly the insurance company often charge you interest.
We hope that the above is of assistance.
