Failing to report certain changes in your circumstances to your car insurance provider could result in hefty costs down the line.
When you take out an insurance policy, you agree that the information you’ve provided is accurate and current. However, if your situation alters in a way that renders this information outdated, it could invalidate your insurance.
If your insurance becomes invalid, then the provider may declare your policy ‘null and void’, meaning you won’t have any valid cover in place. This would lead to any claims you need to make being rejected.
As a result, you would have to pay for any repairs to your car or for any damage to another vehicle if you were involved in an accident, out of your own pocket.
Moreover, having invalid insurance means that you are driving illegally, as you aren’t covered by a policy. If police catch you driving without insurance, you could face a minimum fine of £300 and six points on your licence – if the case gets taken to court, you could face an unlimited fine plus a driving ban.
It’s crucial to note that you can invalidate your insurance policy inadvertently or without even realising. However, this is not a valid excuse for insurers and could still leave you driving without insurance and facing the potential penalties.
Therefore, it’s important that you inform your insurer of any of the following changes that could affect your policy:
- You get a new job
- You move house and have a new address
- You receive points on your licence
- A new person is driving your car
- Your car receives a new modification
- You change your name (including if you get married and your surname changes as a result)
- The place you usually park your car changes
- If you were involved in an accident
Modifying your insurance policy
You can always amend your insurance policy if there are any changes, and might even see your premium decrease – this is known as a ‘mid-term adjustment’. For instance, if you move to a new address that has less traffic and motor crime, insurers may reduce the cost of your policy.
When making a mid-term adjustment, it’s crucial to note that many major insurers, such as Admiral, Hastings, Direct Line, and more may impose an administration fee. However, many insurers may waive this fee in many instances, such as if you do it through an online account, so it’s always vital to inquire with your insurer about this before deciding to make the change.