InsurancePeople Overpaying For Car Insurance Since COVID – Five Ways to Save £100s

People Overpaying For Car Insurance Since COVID – Five Ways to Save £100s

Over the last year, the government’s advice has been to ‘stay at home’ and reduce travel as much as possible, due to the Coronavirus pandemic.  

Even now that lockdown restrictions have lifted, many of us are continuing to work from home and therefore travelling less on the roads. 

This new way of life means that millions of drivers could be overpaying for their car insurance... and figures show that only around 20% of people have been refunded by their policy provider. 

You could save yourself £100s each year by simply adjusting your car insurance policy... so follow our five top tips to cut your costs! 

1.     Reduce your mileage

Before coronavirus, most employees commuted to their workplace 5 days a week. However, that has now changed for a lot of people as we adopt a new flexible way of working. 

If you’re now working from home regularly, you could have overestimated your total annual mileage on your car insurance policy. 

Car insurance is based on risk... that’s why people who drive more miles have higher premiums as they may be more likely to be involved in an accident. 

On the flip side, be careful that you don’t underestimate your mileage as this could invalidate your policy. 

2.     Amend your driving habits if working from home 

If your job offers remote working, you should consider changing the driving habits on your policy to save yourself some money.  

Contact your insurance provider to inform them you want to switch your coverage from ‘social domestic, pleasure and commuting’ to ‘social domestic and pleasure’. 

Why will this lower your premiums? By not commuting to work, you’re less likely to be travelling during peak hours when the roads are at their busiest – lowering your risk of having to make a claim. 

As always, it’s crucial that your application is accurate to your driving habits otherwise you may not be covered in an accident. If you're unsure, talk to your insurer about your circumstances. 


3.     Tweak your job title 

Did you know your job title could affect your insurance premiums? Yes, really! This is because car insurance providers think of some careers as riskier than others.  

For example, journalists have higher premiums as insurers think they may be chasing after emergency vehicles and driving recklessly in order to get a story. Therefore, it could be cheaper to refer to yourself as a ‘reporter’ or ‘editorial staff’. 

Likewise, chefs may find it cheaper to be named a ‘kitchen worker’ or ‘kitchen staff’. Or construction workers could get lower premiums if they were to be called ‘bricklayers’.  

You should never lie about your occupation, as this could invalidate your insurance but, by making sure your job title accurately reflects your role you could save money on your premiums.   

4.     Change where you park 

Your garage may not be the cheapest option to park your car when it comes to your insurance policy. Instead, parking on a private driveway could result in lower premiums.  

This is because a lot of accidents and little bangs happen in these tight spaces. Additionally, if a burglar was inside your house, they would have instant access to your keys and vehicle – making it a riskier place to park from an insurer’s point of view. 

According to Uswitch’s research, a 30-year-old female who has no previous claims or convictions could pay: 

  • £289.18 for parking on the road. 

  • £276.76 for parking on a private driveway. 

  • £291.22 for parking in a garage. 

5.     Don’t automatically renew your policy 

It’s always best practice to shop around before accepting your renewal price, as it may not be the cheapest offer on the market.  

The best prices are usually reserved for new customers, so it’s highly likely that you will find a better deal if you switch to another insurer. 

Compare the Market’s research suggests that drivers can save £371.83 on average by changing their car insurance provider three weeks before their renewal date.