What is an MTA?
MTA stands for ‘mid-term adjustment’ and is basically any change made to your car insurance policy once it’s begun.
For example, changing your address four months into your policy is a mid-term adjustment.
When do I need to make a mid-term adjustment?
You might need a mid-term adjustment if:
You’ve moved house
You want to add a named driver to your policy
You need to change personal details like your occupation, work address or name
You’ve changed where you park your car at night
You’ve made modifications to your vehicle
You’ve received a driving penalty or conviction since your policy began.
Life is unpredictable and circumstances change. You might move house before your contract is up, switch jobs, or move in with a partner.
Insurance providers understand and will do what they can to help. But be sure to tell your provider about any changes that might affect your policy. Otherwise you might run into problems if you need to claim – your policy may even be void.
How will a mid-term adjustment effect my premiums?
Whether an MTA is good or bad news for your wallet depends on the nature of the change. Some amendments have no effect, while others – like adding a named driver under 21 – will considerably increase your premium. Receiving a driving conviction is also likely to send your premium up.
It’s not always bad news though — if you’re driving less and change your annual mileage, your premium could fall.
If you’re in any doubt, check your policy conditions or call your insurance provider. Better to be cautious than risk invalidating your insurance because you failed to provide the relevant information.
In some cases, talking to your insurance provider in advance can save you money. If you’re thinking about modifying your car, your insurance provider can tell you how it will affect your premium. If it’s going to send it sky high, it’s maybe not such a good idea.
How much does it cost to make a mid-term adjustment?
The cost of a mid-term adjustment will vary, depending on your insurance provider, so check your policy.
Some providers won’t charge for MTAs, but others may charge just to change your address. Remember you’ll need to pay any MTA fees on top of the cost of your premium.
Insurance providers set out their fees and charges in their terms and conditions, so there shouldn’t be any surprises. But if you feel a charge is unreasonably high, you can challenge your insurance provider and explain why you feel it’s unjust.
If you’re asked to pay a high admin fee for a small amendment – such as a name change if you get married – you may want to challenge it. You can do this through your insurance provider’s complaints service.
If they don’t resolve the issue, you can escalate it to the Financial Ombudsman Service, which is free.
Can I change insurance provider if my premium rises after an MTA?
Yes. If you feel your new premium is unreasonably high after an MTA, it’s worth seeing if you can get a better price elsewhere. But remember, you may be charged for cancelling your policy early and you won’t get a no claims discount if you cancel mid-policy.
Top Tip:
Keep an eye on insurance prices to make sure you’re not paying too much. If you haven’t switched in a while, there’s no harm in comparing prices to check you’re still on the best deal. Even if leaving your policy means paying an early cancellation fee, it could be worth it for the right saving
Rebecca Goodman is a freelance financial journalist who specialises in insurance, personal finance and consumer affairs.
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