Many car insurance companies have pledged to support struggling motorists throughout the coronavirus crisis.
From Wednesday, May 13, insurance firms will be expected to allow customers to defer payments while keeping their cover in place.
Some companies are already offering payment holidays or the option to temporarily reduce payments to help manage their finances.
The Financial Conduct Authority (FCA) says payment holidays should last for between one and three months, but their proposed guidelines don’t restrict firms going further to help customers.
The FCA has also told insurance firms they must ensure general policyholders are getting value for money during the Covid-19 pandmeic.
Concerns were highlighted after analysis revealed some firms could make up to £1billion during the global crisis due to the lower number of claims made by motorists.
Birmingham Mail reports that Money-saving expert, Martin Lewis, issued some key advice for anybody with a car sitting on the driveway considering cancelling car insurance.
The founder of MoneySavingExpert.com said: "The difficulty is we don't know how long lockdown will last.
"If it's just weeks, this'd be a faff for a small saving.
"Yet, if you don't think you'll drive much anyway even when the rules relax, then, for example, if you've two cars and are only likely to use one, it could save you cash,” he added.
But the financial guru also warned motorists: "Do remember if you've no car insurance, your car isn't covered for damage or theft."
Even if you're not driving at all due to lockdown measures, unless you keep your vehicle on private land, you should have car insurance, which means you would need to get a Statutory Off-Road Notification (SORN) to save cash on insurance and road tax.
Failing to renew a policy would mean road users are not allowed to use their car for any journey except for a pre-booked garage appointment - breaching the rules comes with a fine of up to £2,500 and even possible prosecution.
Alongside car insurance savings, motorists can also request a payment holiday of up to three months on their car finance agreement.
This could also help cash-strapped motorists save money during this difficult financial period.
