What is car insurance mid-term adjustment (MTA)?
Did you recently move into a new house? Change your name? Have your overnight parking habits changed? Here’s what you need to know about mid-term adjustments on your car insurance policy.
Did you recently move into a new house? Change your name? Have your overnight parking habits changed? Here’s what you need to know about mid-term adjustments on your car insurance policy.
What is an MTA?
MTA stands for ‘mid-term adjustment’. It’s basically any change made to your car insurance policy once it’s started. For example, changing your address four months after your insurance policy began would be a mid-term adjustment.
Why would I need a mid-term adjustment?
Here are some common reasons you might need a mid-term adjustment:
- You’ve moved house
- To add a named driver to your policy
- To change personal details like your occupation/work address or your name
- To add extra information such as where you park your car at night
- To change your annual mileage
- You’ve made modifications to your vehicle
- You have received a driving penalty or conviction since the start of your policy
Life is unpredictable and although we can plan ahead, sometimes things happen that we can’t account for. That could be having to move house before a rental contract has finished, switching jobs, or a moving in with a partner. Insurance providers understand and will do what they can to help.
But not telling your insurance provider about any changes that might affect your policy could lead to problems if you need to make a claim or even void your policy.
How will a mid-term adjustment effect my premiums?
Whether an MTA is good news or bad news for your wallet depends on the nature of the change. Some amendments will have no effect at all while others, like adding a named driver under the age of 21, are likely to increase your premium considerably. Similarly, if you’ve received a driving conviction, it’s likely to send your premiums up. It’s not always bad news though, if you find you’re driving less and you change your annual mileage, for example, your premium could fall.
If you’re in any doubt about the sort of changes you need to make, either check your policy conditions or call your insurance provider. Better to be cautious than run the risk of invalidating your insurance because you failed to give them all the relevant information.
In some cases, speaking to your insurance provider in advance could save you money. If you’re debating getting a modification to your car, for example, your provider should be able to tell you what impact it will have on your premium. If it’s going to send it sky high, maybe it’s not the best thing to have done.
How much does it cost to make a mid-term adjustment?
The cost of a mid-term adjustment will vary – it depends on your insurance provider, so check your policy for details. Some providers won’t charge you for making MTAs, but others could charge you just to change your address. Don’t forget that any MTA fees need to be paid in addition to any changes to the cost of the premium.
Insurance providers set out all their fees and charges within their terms and conditions, so whether you’re charged for making an MTA shouldn’t come as any surprise (assuming of course you’ve read all your policy terms and conditions). However, if you feel the charge is unreasonably high, you can challenge your insurance provider. In this case, you’ll need to explain why you feel the charge is unjust.
The cost is there to pay for an insurance provider’s work – if they have to reassess your risk level for example. Yet if you’re being asked to pay a high admin fee for a small change – such as change your name after you get married – you may want to challenge it. You can do this through your provider. If it doesn’t agree you can then escalate the complaint to the free Financial Ombudsman Service.
Can I change insurance provider if the rise in premium is too high?
Yes. If you feel the change in premium quoted after your MTA is unreasonably high, it might be worth seeing if you can get a better price somewhere else. However, you should keep in mind that there may be a charge for cancelling your policy early and that won’t get a no claims discount for that year if you cancel mid-policy.
Top Tip: It’s always good to keep an eye on insurance prices to make sure you’re not paying too much. If you haven’t switched in a while, for example, there’s no harm in comparing prices to check you’re still on the best deal. Even if you’re charged a fee for leaving your existing policy early, if this is less than the savings you’ll make from switching then it could be worth it.
