Drive down your insurance costs

QDear Cash Queens, I’ve been working from home for a year and I’ve hardly used my car in lockdown but have paid hundreds of pounds out in insurance for a vehicle that’s been sitting outside the house and only used to go grocery shopping.

I’ve been told by my bosses that no one is going back to the office and that we’ll carry on working from home.

It means I won’t need my car for the lengthy commute but just as a runaround. My mileage has plummeted from 14,000 a year to no more than 4,000 and the policy is coming to an end. Is there anything I can do to keep the car, which I love, but reduce my premium? Amber Watkins Wolverhampton

AIt’s always best to talk to your insurer first, in case they are able to offer you money back for unused miles or better terms. But there are two providers that we are aware of who offer pay-as-you-drive cover. The RAC has recently launched a Pay by Mile policy with a ‘parked premium’ from £14 a month to cover the vehicle when it is not in use, and a ‘mileage premium’ from 4p a mile, depending on the make and model.

It’s aimed at low-mileage drivers who average about 6,000 miles a year.

The monthly mileage is logged by a small green disc tag, pictured above, which sticks to the windscreen and works with a smartphone app so you can keep an eye on your miles and cost.

Similarly, insurer By Miles has been offering pay-by-mile policies for a while and drivers are able to monitor their mileage with a tracker that fits just under the steering wheel.

Both providers offer comprehensive policies.

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Mileage is logged by a disc and an app so you can keep an eye on costs