UK car owners are taking their vehicles off the road as the virus lockdown looks likely to last months, rather than just a few weeks. Many drivers have also lost their jobs, or their business, over the last week or so. This too is prompting cost-cutting measures and as driving anywhere without a plausible reason is now deemed a crime, many car owners are giving up for a while.
Tempcover has today announced it has identified a 31% drop in searches for car insurance during the period 3 to 30 March 2020, and a 38% rise in online users searching for SORN during the period 1 to 28 March 2020.
If your car is declared SORN you should let your insurer know as soon as possible. You may be able to reduce the level of cover to fire, theft or what is sometimes called `laid up’ cover. However some brokers or insurance companies might charge and admin fee, which would make any savings negligible.
Embattled motorists are halting the renewal of their annual vehicle insurance policies and even considering declaring their vehicles SORN in an attempt to save money during a period where their mobility is severely restricted and there is immense uncertainty surrounding their personal finances.
While it may be tempting to halt all vehicle costs in the short-term, it is important for motorists to be aware that this may have long-term consequences – whether that be financial costs related to policy amendment fees or even prosecution for driving uninsured.
If there was a family emergency then drivers may need cover immediately, but perhaps for just a few days. This is where a temporary cover note keeps you legal. Although a SORNed car is not taxed of course, so that cannot be driven on the public road, even with insurance.
Motorists are being advised to declare their ‘normal’ activities when renewing their annual policies during this period, and Tempcover wants to make people aware that there is a temporary alternative to get them through. The most suitable yet largely unknown solution during this uncertain situation is temporary vehicle insurance – where motorists only pay for the cover as and when they need it. Provided the vehicle is taxed, affordable cover can be taken for terms as short as just one hour, right up to 28 days.
Companies like Zego can also offer PAYG cover, which is particularly aimed at those in the food delivery industry. This is started and stopped via smartphone app login.