How to get a refund on your car insurance due to coronavirus

MOTORISTS across the country might be eligible for a refund off their annual car insurance costs because of the coronavirus outbreak.

The current lockdown means most drivers are paying for their cars while not actually using them but it may be possible to claim some of these costs back.

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Since March 23 the UK has been on lockdown after Boris Johnson ordered all non-essential shops to shut and told people to stay at home unless going out to buy food or medical supplies, for exercise, or for work.

In fact drivers have been warned they could invalidate their insurance if they make unnecessary journeys. 

But even though most drivers can't use their cars, they will still be paying for car insurance along with other costs including tax. 

Here we explain how you could get a refund on your policy costs.

What insurers are giving refunds?

While there has been a six-month break from MOTs, nothing has yet been announced around insurance costs.

In the US some insurers have started offering discounts of 15 per cent for policyholders.

There hasn’t been an equivalent announced in the UK but some insurers have said they may give refunds.

Direct Line, for example, which has more than five million customers and includes the brands Green Flag, Privilege and all the Nationwide insurance products, said it would consider refunds in some circumstances.

Can you declare your car off road?

It is possible to apply for a Statutory Off Road Notification (SORN) if you are no longer using your car on public roads.

If approved this means you no longer need to buy insurance for your car, but it also means you won't be able to use it.

This includes for essential trips such as going to buy food or medicines and it would no longer be covered for damage or theft.

What can you do if you can’t afford your insurance?

If you are struggling to pay your insurance, whether that’s monthly or annually, contact your provider and let them know. They should be able to offer some help which could mean lowering your payments. 

Can I just not pay my insurance if I'm not driving?

Unfortunately not. It's a legal requirement to have car insurance for your car if you are using public roads, and when you buy the policy you are doing so with the assumption you'll use it for a year.

A spokesperson for the ABI explains: “The law requires that all vehicles on the road must be insured, and even during lockdown, many private motorists will need to use their vehicles for essential travel, and need to be fully insured.

"Even if you do not drive during lockdown, you will still need to be protected against theft, vandalism and damage."

Petrol costs have fallen significantly because of the outbreak and are now down to almost £1.

Interest and payments on car finance deals can be frozen. 

Banks are also handing out interest-free overdrafts to some of up to £500.