New rules from the Financial Conduct Authority (FCA) have been created to help motorists to reduce the impact of temporary financial distress and to ensure that customers continue to have insurance that meets their demands and needs during the ongoing coronavirus pandemic.
The Financial Conduct Authority (FCA) has announced a raft of measures to help motorists struggling to pay their car insurance during the ongoing coronavirus crisis.
The new rules from the FCA will mean that drivers are able to switch policies or request a payment holiday of up to three months from their car insurance policy if they are struggling to make payments because of financial difficulties caused by the coronavirus crisis.
The new rules from the Financial Conduct Authority (FCA) also mean that customers won’t be charged fees for cancelling or changing their policies. The plans also apply to customers who have paid for their insurance annually who will be eligible for a partial refund if requested.
For those that find transferring their policy isn’t enough to help their financial circumstances, then insurance companies are expected to give customers a payment deferral of between one to three months, although this can be longer if decided by the insurance company.
According to the FCA, the guidance is to prompt firms to help qualifying customers, where possible, to reduce the impact of temporary financial distress and to ensure that customers continue to have insurance that meets their demands and needs.
Customers can request payment deferrals at any point between now and August 18, 2020.
The announcement follows more financial support for car buyers after the FCA announced temporary measures to support motorists who are facing difficulties making their car finance payments during the coronavirus crisis.
This appears to be a well-thought-out scheme designed to help people to stay within the laws of the road as well as helping to relieve financial stress during these difficult and uncertain times.