UK Car Finance Groups Report a Surge in Motorists Seeking Loan Relief

As the coronavirus pandemic brings bad news to us every day, especially to the finance world. In the latest turn of events, UK car finance groups have been reporting an increase in motorists that are seeking relief on auto insurance loans during the coronavirus lockdown. This follows concerns about a wave of defaults across the insurance finance sector. Calls to UK insurance lenders have risen 20-30 times the normal levels. This news comes from the Finance and Leasing Association, the industry body for automotive finance providers.

 

Increased Customer Calls – Pressure on Insurance Providers

UK Insurance providers that offer motor, consumer or equipment loans experienced a 1,400 % increase in the amount of calls from worried customers who may be unable to pay their insurance loans; this was only during the first week of the UK lockdown. In the following week of the UK lockdown, volumes rose 200% and held constant in the third week, according to the Finance and Leasing Association. The head of motor finance at the Finance and Leasing Association, Adrian Dally, said ‘there has been a very significant percentage increase in call volume going into member companies’ and ‘this is causing very significant operational pressures.’ The increased pressure on UK motor loan insurance providers is just another of the bad news that the coronavirus lockdown has brought to the UK and to the world.

Relief Measures for Insurance Customers

Some UK car lenders have already started granting relief to motorists. Black Horse, one of the UK’s largest motor finance companies, said that it has already given more than 60,000 payment holidays. These make a considerable impact on people’s overhead expenses during the UK lockdown, and the extended period that the coronavirus will affect the world.

Home Insurance: The Common Types of Optional Extras

Our previous post discussed the three general categories home insurance comes under. Not only is it important to make sure you get the right cover and the right type of cover, but it is equally important to be aware of the terms, conditions and inclusions to your home insurance policy. On one hand, you may be paying more than you need to by adding unnecessary optional extra to your home insurance policy, while, on the other hand, you may be assuming to be under the protection of cover which is not necessarily a part of your home insurance policy as standard. The types of cover which tend to come under the category of optional extras include accidental damage cover. Accidental damage cover protects you in the instance of damage or destruction to your property caused by yourself.

This would also include friends, or family. Personal possessions cover protects your valuable items outside your house, such as mobile phones, cameras or jewellery, while you are using or wearing them outside your house. The added option of home emergency cover protects you in the instance of a breakdown of a vital service, such as a boiler breakdown, an electrical breakdown, a plumbing problem or even the loss of keys and a pest infestation. Legal expenses cover can prove an invaluable addition to your home insurance policy as, in the event of a legal dispute, over poor workmanship with contractors working in your home or neighbours disputing a boundary fence, legal costs and court costs can easily spiral out of control. Insurers provide you with cover in these eventualities at a comparatively lesser extra cost, which could someday prove invaluable. And, remember, not all insurers cover the contents of your garden shed as part of the home insurance’s contents cover policy. Be sure to check the details of your policy.