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Drivers can slash their vehicle costs by making a range of changes to car insurance, road tax and fuel to save money for the winter ahead. This could be important for drivers with second vehicles or those who may be set to work from home for another six months.
Car tax savings
The easiest way to save money on your vehicle is simply to cancel your policy and apply for a Statutory Off Road Notification (SORN).
This is a declaration which says your car is not being used on the road in any capacity so tax or insurance is no longer needed.
However, with a SORN in place road users are not allowed to use their vehicle for any journey except for a pre-booked garage appointment.
Driving without vehicle tax in the palace could see road users charges up to £2,500 which could see any savings wiped out.
However, road users cannot just sim;y cancel their car tax without applying for a SORN as this can lead to a £1,000 fine.
Cars which have been declared as SORN must also be kept on private property such as a driveway or garage at all times.
Car insurance savings
Experts at Money.co.uk have recently warned that drivers could make massive savings on their car insurance cover when redwing at the end of 2020.
Recalculating your mileage is vital as it’s quite possible many drivers would have used less than they originally predicted when they first secured an agreement.
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Experts say that a difference of just 2,000 miles could save motorists as much as £67 per year on their premiums.
Money Saving Expert Martin Lewis has urged drivers they can craftily save on their premiums by switching providers during the shutdown.
This is because many firms have waived their cancellation fees or amendment charges which means drivers could save without paying a penny.
Back in July, the Financial Conduct Authority (FCA) announced it would extend temporary coronavirus measures until the end of October.
These measures mean insurers must implement targeted measures to help drivers struggling financially due to the crisis.
This means firms must reassess the risk profile of customers and reduce the level of cover if this would help a driver save money.
Payment deferrals of between one and three months must also be considered for drivers who are struggling with monthly payments.
Car finance savings
The FCA has also extended motor finance support until 31 October in a bid to help those struggling to meet payments.
Drivers can secure payment holidays for three months which means drivers do not need to pay any money and will not be seen as being in debt.
Other options include smaller monthly payments or deferrals for less than three months.
The measures have been put into place to ensure drivers are not susceptible to lose their vehicles through the impact of the pandemic.
Petrol and diesel costs have mostly flatlined over the past month with costs failing to return to pre-lockdown levels.
Petrol prices remain at 113.31p per litre this week in a slight 0.06p fall since the start of September.
Costs have remained at 113p since the middle of August despite prices increasing at around 1p per litre each week over the summer.
Diesel prices have also stagnated at just over 118p per litre in costs still over 14p per litre cheaper than in January.
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