Car insurance will not be invalidated driving in lockdown after ‘worrying’ rumours
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Car insurance firms will “continue to cover” drivers during the second shutdown including for non-essential travel, according to the Association of British Insurers (ABI). Their comments came just days after insurance experts claimed that policies could be axed if drivers broke restrictions.
A spokesperson for the ABI said that drivers “should follow” restrictions but would not lose their cover for simply using their vehicle.
The spokesperson said: “During lockdown the Government has advised against all but essential travel.
“Motor insurers continue to cover those using their vehicle for commuting to work and NHS volunteering without you having to first tell them.
“You should follow Government restrictions, but if you do use your car for non-essential travel, you will not risk invalidating your car insurance.”
Back in March the ABI reassured drivers that firms would be offering enhanced support due to the pandemic.
In the spring, the ABI said that drivers would not need to update their policies as a result of a change of circumstances.
They have previously revealed that cover would not be affected if they used their cars for a wide range of purposes
This included getting to work or supporting their local communities and key workers during the pandemic.
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Confused.com backed the ABI’s comments, claiming that previous claims that policies would be axed were “confusing” and “worrying” for road users.
A spokesperson said: “While the government have advised against non-essential journeys in England, people do still need to use their cars for commuting to work or other essential trips.
“However, there are some reports that doing this could invalidate car insurance policies if a claim is made.
“Which is both confusing and worrying for drivers who may need to use their car.
“But this isn’t the case. While people should be following the government guidelines and avoiding all unnecessary journeys, the ABI has confirmed drivers who use their car for non-essential travel during lockdown will not risk invalidating their insurance.”
The ABI has also confirmed that insurers will likely offer a range of extra features to help drivers as a result of the pandemic.
They say that motorists who are self-isolating should be able to add another person or family member to their insurance which will allow them to drive their car.
ABI experts say insurers will be “pragmatic” and “not penalise” drovers for something which was out of their control.
They say this view will likely be taken if road users cannot take three car for an MOT due to the effects of the pandemic.
The Financial Conduct Authority (FCA) says that they expect firms to “consider” the needs of customers and “show flexibility”.
The FCA has said that drivers expect insurers “not to reject claims” because of a “temporary change” in how they use their cars.
FCA guidance has urged firms to offer payment deferrals or reduced cover for those who are unable to pay agreements.
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