Car insurance experts are urging drivers across the UK to avoid 10 common mistakes that could invalidate their policy cover, potentially leaving them unable to claim repair costs from their provider in the event of an accident. But all is not lost as Nicholas Shaw, Director of Operations at Dayinsure, shares simple measures drivers can take to ensure they don’t accidentally invalidate their insurance policy.
The advice comes at a time when car insurance customers face a growing divide between those paying monthly and annually, according to Which? The consumer group recently said those customers who can often least afford to pay "over the odds" may end up paying around an extra £300 on average.
Data shared with Which? by comparison website GoCompare in January indicated that, as of November 2022, nearly half (46%) of car insurance customers opted to pay in monthly instalments. In November 2019, the average difference was £217, according to the research, however, by November 2022, the typical difference had increased to £302.
Monthly payers faced paying just under £757.60 typically compared to £455.49 for annual payers. While not every ‘pay monthly’ customer is paying more, the more severe price increases could be falling on the drivers least able to afford them, the consumer group said.
10 easy mistakes that could invalidate your car insurance and how to avoid them
Choosing the wrong class of use
The class of use indicates how you will use your car to your insurance provider. There are different use cases, covering things like social driving, commuting and business-related trips. It is important to pick the right class for you and your vehicle, as the likelihood of being involved in an accident varies depending on the time of day (like rush hour) and the frequency of driving (every single day vs occasionally).
Therefore, the class of use has an impact on how much you will pay for your insurance premium. If you deliberately state the wrong class or use your vehicle in a way that isn’t insured (for regular commuting when you indicated social driving for example), this may leave you with an invalid policy.
Driving someone else’s car - get Temporary Car Insurance Instead
Many have been in a situation before where they needed to borrow someone else’s car, either because their own is in the garage or because they don’t own one and need to go somewhere at short notice.
While it may seem perfectly fine to have your friend drive your car for a few hours, this may result in a costly mistake which could get you or your friend fined. This is because some people falsely assume that their car insurance is tied to a person and covers them regardless of which vehicle they drive.
However, this is often not the case, as most policies only cover named drivers for specific vehicles. A much cheaper, and legal alternative to driving someone else’s car is to get flexible temporary car insurance instead.
Picking the correct job title
This minor detail in your personal information could actually make a big difference to your car insurance quote. This is because some professions need to drive more often than others, with a very simple example being taxi drivers vs office workers.
However, it is important to remain truthful when stating your job title, as if your insurer finds out you’re lying they could cancel your policy, and this could make it harder for you to find cover in the future. If you have more than one job though, it is worth checking both job titles. If you are in any doubt, speak to your insurer.
Underestimating your mileage
Car insurance policies are likely to be more expensive if your annual mileage is higher, because of the likelihood of you getting into an accident. If you go over the annual mileage estimate you gave, this could invalidate your policy.
It’s also worth noting that car insurers can check your mileage in your MOT history, so it’s important to estimate this accurately. You can either use an online mileage calculator to get the right figure or use the one that is recorded on your MOT certificate.
Not keeping your details up to date
This is a simple, but common mistake to make. It is important to keep your personal details, such as name, address, and contact information up to date.
It is also fraudulent to misrepresent yourself or take out an insurance policy for someone else just to get a lower premium. This behaviour can not only cancel your cover, but fraudsters can also get criminally prosecuted and may even face imprisonment.
Forgetting your MOT
If this is a requirement of your policy, which it most likely is, not being up to date on your MOT will invalidate your policy.
You also can’t legally drive a car without a valid MOT, so it is very unlikely your insurer would pay out for a claim that you incurred while driving without this annual test. If you are found to be driving without an MOT, you could be fined or even be banned from driving.
Car modifications
Not all car modifications will automatically invalidate your car insurance, but those that are undeclared potentially could. This typically includes exhaust modifications, turbos, body kits and more performance enhancements.
Other modifications which help driver safety, such as dash cams, wheel locks, or trackers, should not impact your policy, however.
Driving with unsecured pets
For all pet owners who are in a rush, this is one to particularly look out for. If your animal was not secure and was freely roaming around your car at the time of an accident, then this could invalidate your insurance policy.
This is because an unsecured pet increases your risk of driving without due care and attention, as they pose a distraction from the road.
Rule 57 of the Highway Code says: “When in a vehicle make sure dogs or other animals are suitably restrained so they cannot distract you while you are driving or injure you, or themselves, if you stop quickly.”
Therefore, having an unrestrained pet in a moving vehicle could result in a fine, as this could cause an accident and be a danger to other road users.
Not reporting minor accidents
You might think that minor incidents, especially those that weren’t your fault, don’t need to be reported to your insurance provider, but that isn’t the case.
Accidents change your driver risk level, so they should always be reported. You can submit accidents without intending to make a claim though and indicate that they weren’t your fault.
Don’t be fooled into thinking your insurance provider won’t find out about the accident, as any other party who was involved might have contacted their own provider, who in turn could tell yours.
Leaving the car unlocked or not keeping your keys safe
If your car gets stolen, and it is proven that you left your keys in the ignition or left the vehicle unlocked, your claim could be invalidated. This is because you didn’t take the necessary steps to keep your car safe, which is often a condition in car insurance contracts.
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