Car insurance could be invalidated if drivers ‘circumstances have changed’ in lockdown

Morning Live: Expert shares tips on car insurance

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Car insurance agreements must have up to date details and any changes must be reported to insurers as soon as possible. Failing to do this could leave drivers in a “difficult situation” and risks policies being completely invalidated.

This is because moving to a different area could carry different levels of road risks which means owners are more likely to make a claim.

Mike Thompson, Director of Leasing Options said drivers should check their policies if their circumstances have changed.

He has urged road users to “check their policy” to ensure it has correct information before taking their car out again.

He said: “During the lockdown motorists have been driving far less than they usually would.

“This means they most likely have overestimated their mileage which can impact insurance.

“Many drivers’ circumstances may have also 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 and true to this day.

“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.

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“We recommend motorists check their car insurance policy 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.”

Money Super Market has confirmed insurance firms will take a postcode into account when they set premiums for car insurance.

They added there was always a chance your premium could even fall if you move to an area with a lower crime rate.

However, drivers must be prepared their costs can rise in more built up and dangerous areas.

They warn where drivers decide to leave their vehicles at the new property will also make a huge difference in costs.

If road users used to leave their car on the street but will now store it in a garage, it is likely costs will fall.

However, moving to a more built-up area which will require you to leave your car on the pavement is likely to see costs soar.

According to Compare the Market, insurance underwriters will study statistics in your local area to work out how much of a risk your postcode is.

Data will include population density, traffic density, chrome rates, personal injury claims and the number of accidents in an area.

Data from the group found London was the most expensive place to insure a car with drivers paying an average of more than £1,000 per year.

The North West, West Midlands and Yorkshire and the Humber also had expensive insurance costs with drivers paying between £773 and £809 for cover.

However, more rural regions such as Scotland, the South West and Wales saw lower rates with drivers set to pay below £600 per year.

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