Drivers are being warned to check their car insurance policies regularly to make sure it's up to date before they get behind the wheel.
In the UK it’s illegal to drive a vehicle on a road or in a public place without at least third party insurance, but even those with comprehensive policies might receive a penalty and points on their licence if they are caught driving a vehicle with inaccurate insurance.
From getting paid for lifts to changing jobs, leasing company Leasing Options has had a look at ways you could be invalidating your car insurance without even realising.
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Mike Thompson, of Leasing Options said: "Many drivers’ circumstances may have changed since they last renewed their car insurance, such as a change of address or jobs. We must remember to update our policies to ensure everything is still accurate. Failing to do this could invalidate your policy and leave you in a difficult situation if a reason arises that you need to put in a claim to your insurance provider.
“We recommend motorists check their car insurance policy regularly to make sure it is up to date with their current circumstances before getting behind the wheel again. Or they could be breaking the law by driving a vehicle on a road or in a public place without insurance.”
Here are 10 ways you might get caught out:
- Exchanging money for lifts: Making a profit from giving someone a lift to a destination could put your car insurance at risk as some insurance policies do not permit drivers accepting any sort of payment for a lift as it's percieved as as your car being used for hire. In general. accepting money to cover the cost of fuel is acceptable as you are unlikely to make a profit for this.
- Inaccurately naming the main driver: Fronting - or listing another person as the main driver - is illegal. It's usually done to reduce a younger driver’s insurance premium when a parent or someone older is listed as the main driver, but in reality, that younger person is the main owner and driver of the car. This could invalidate your insurance and it could also land you with a substantial fine and six points on your license.
- Not updating your address: Insurers take your postcode into account when assessing your premium, so when you move to a new house, your insurance policy may change. Don't forget to tell your insurer when you’ve changed address.
- Not informing your insurer about a new occupation: Car insurers collect occupation data to predict how likely it is that people in different jobs will make a claim. This is why it’s important to inform your insurer when you get a new job as failing to do so could leave you uninsured.
- Where you park your car: There is a difference in insurance premiums if you use off-street parking compared to parking on a street. If you tell your insurer that your car is parked off-street when it’s not, your claim would not be valid if you are broken in to.
- Lying about what the car is used for: Insurers will ask how you use your car whether it’s for social, social and commuting or business use. Not telling the whole truth could leave you without car insurance.
- Underestimating the mileage: As annual mileage is one of the main factors used to calculate your insurance premium, you must state the correct number of miles. If your mileage is higher than your estimate then this will put your policy at risk.
- Having an obstructed windscreen: If your windscreen is obstructed in any way and you’re involved in an accident your insurance claim would be void. Whether it's frost, dirt or too many air fresheners hanging from your rear-view mirror.
- Not telling your insurer about accidents: You must let your insurer know about any accidents your car is involved in, no matter how big or small, even if you don't intend to make a claim. If you don't and a third party reports the incident to their insurer it would leave your insurance company in an awkward position. Also if there is previous damage to your car from an incident you have not told your insurer about, any future claims to your insurer could be discredited by this.
- Modifying your car: If you plan on modifying your car, contact your insurer beforehand so they can tell you how much your policy will increase. Modifying your car increases insurance policies for multiple reasons. Bodywork and non-standard engines are more expensive to replace and repair and some modifications can increase the risk of your car being a victim of theft.
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