Thousands of AA customers overcharged for breakdown cover
THE AA has refunded thousands of customers after an error left drivers out of pocket for their breakdown cover.
Around 6,500 motorists received an email from the insurance company to say they were charged more than what they were quoted for breakdown cover renewal.
The AA said it is refunding those affected, and the cash could take six to 10 working days to appear back in customers’ bank accounts.
According to the , one customer who got in touch claimed they were charged an extra £6.30, but the amounts other drivers were overcharged by will vary.
The AA has said that it has already been in touch with customers to automatically dish out the refunds.
The insurance company has over 14 million members, according to its website.
How to lower your car insurance costs
IF you're looking at ways to save a bit of cash on your car insurance, there are a few things you can do to bring premiums down.
We spoke to Matt Oliver from Car Insurance to find some of the best ways to save:
1. Save £88 – by using the right job title
Your occupation is one of the major pieces of information that insurers use to work out your insurance premium. Ultimately, some jobs are viewed as more "risky" than others.
But sometimes there's more than one job title on the pre-defined list that accurately describes what you do. Picking the right one could lead to significant savings.
For example, someone who selects "chef" could pay as much as £88* more than someone who selects "kitchen staff".
Don't lie about your job though - you'll invalidate your cover.
If you’re a full-time parent, retired or a full-time student make absolutely sure you’re selecting those titles and not ‘unemployed’ – it could save you almost £300*.
*Based on a 31 year old male, living in Reading, driving a Vauxhall Corsa
2. Save £520 – by adding a more experienced driver to your policy
Inexperienced and young drivers typically face the highest premiums – but could save up to £520* by adding more experienced drivers to their policy.
While new or younger drivers are likely to see the biggest savings, this applies to everyone, even if you’re seen as a low risk driver yourself.
Make sure you're not illegally ‘, which is where younger or less experienced drivers claim to be the ‘named’ – additional driver, when they’re actually the sole or main user of the vehicle.
*Based on an 18 year old, living in North London, driving a Vauxhall Corsa
3. Save £76 – by planning ahead if you buy in advance
Buying insurance as early as possible could save you more than you might think.
On average, Go Compare found car insurance is £76 cheaper if bought a week before its start date.
4. Save £120 – by paying annually
Paying monthly is convenient and affordable but it's almost always more expensive than paying for your insurance in one lump sum. Paying annually could save you around £120*.
*Based on a 31 year old, living in Newport, driving a Vauxhall Corsa, paying monthly compared to paying annually.
5. Save £280 - when you shop around
The only way to make sure you’re securing the best deal on your car insurance is to shop around - and the good news is, it only take a few minutes.
Consumer Intelligence research found that 51% of customers could save up to £279.42 with GoCompare Car Insurance.
But around 0.05% of these - around 6,500 customers - were reported to be affected by the error.
An AA spokesperson said: “We are aware that a coding error led to some customers being charged incorrect amounts.
“We have apologised and made refunds and no further action is required.”
The AA said it has already contacted and dealt with the affected drivers.
But here's with their support centre.
Martin Lewis urged drivers last month to check out cheaper car insurance deals, even if they’re mid way through a policy, to potentially knock hundreds of pounds off their bill.
Writing in MoneySavingExpert’s weekly newsletter, the finances guru urged Brits to start hunting 20 to 26 days before your policy is up for renewal to get the cheapest price.
But with industry experts warning that drivers could have to stump up £75 a year more for insurance, Martin urged everyone to shop around, even if they’re mid way through a policy.
You could also save on your car insurance through other ways too, such as applying for a refund due to coronavirus.
Lockdown measures have ground travel to a halt as Brits were told to stay at home until March.
We’ve outlined which car insurers including Admiral and Direct Line offered refunds in previous lockdowns and explain how you can try to get a refund for this one.
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