Car insurance lifeline is offered to motorists by FCA
The FCA (Financial Conduct Authority) has announced a range of measures to help motorists that are facing car insurance problems during the ongoing COVID-19 crisis.
FCA suggest motorists will be able to switch policies or request a payment holiday from their car insurance policy. The payment holidays would be for a period of three months. These options are applicable for motorists facing problems paying their insurance during the COVID-19 crisis.
The new rules from the FCA will also enable customers to cancel or change their policies without any fee. Customers who have paid for their insurance can request a partial refund by following this plan.
The FCA continue by stating they expect insurance companies to offer further support for customers in financial difficulty. If transferring policies proves difficult for financial reasons, insurance companies will allow a payment deferral of three months. The insurance companies will also be able to extend this period at their own discretion.
According to the FCA, the guidance will allow the firms to help struggling customers. This is being done to decrease the effect of financial distress and to ensure that the demands and needs of the customers are fulfilled.
Customers will be able to request payment deferrals till 18th August 2020.