This one car tax mistake could cause your insurance to be invalidated

Car insurance firms may refuse to pay out for claims during a car crash if road users do not have valid car tax policies in place. This could leave many road users caught out just months before new 2020 car tax changes come into effect.


  • Car insurance could be invalidated by using parking service

Road users are likely to see their car tax costs increase from April as CO2 emissions ratings are set to be taken from WLTP estimates for the first time.

These stats are usually rated higher than the emissions ratings under the old system meaning overall tax costs could rise.

This could put many road users off renewing their schemes but motorists may not be aware they could face penalties for failing to do so.  
New 2020 car tax changes will see the added £320 charge for owners of fully-electric cars over £40,000 scrapped.

However, road users may be caught out for failing to follow guidelines which require all cars to be registered with the DVLA.

Owners of cars which are not due to pay charges must contact the DVLA so experts can check whether charges will need to be paid.

Failing to do this could result in car insurance policies being scrapped as your car will not officially be road legal.

Analysis from BeMiles has revealed forgetting to renew car tax is one of the most common mistakes made by road users which can invalidate a policy.

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A total of nine percent of those surveyed said they had forgotten to renew their car tax despite the risks involved in not getting an updated tax policy.

Fully-electric vehicles are exempt from car tax charges but road users must declare this to the DVLA to avoid costs and invalidating their cover.

Rod Jones insurance expert at uSwitch says: “With claims now running into the thousands of pounds, people can’t afford to make a careless mistake that could invalidate their cover and leave them out of pocket.

“It is therefore really important that drivers note down their key renewal dates, and avoid making the easy to forget mistakes to ensure they are covered by should they ever need to make a claim.”


  • This pet rule could see motorists fined

Motorists without car tax in place could be issued with a strict  £1,000 fine.

However, car insurance companies could invalidate your policy because you would be breaking the law.

Many insurers include terms and conditions clauses which say polices will be axed if you commit a motoring offence as this could be viewed as negligence.

In a statement, RAC Drive experts said: “If your car doesn’t have tax then you can’t legally drive it on UK roads.

“This means that any insurance policy you have taken out for your car will be invalidated.”

Invalidated car insurance agreements can have a devastating impact on road users who may struggle to get cover in the future once an agreement has been axed.

This could force road users to purchase a specialist car insurance policy which can often be more expensive than traditional agreements.

 DVLA crews are cracking down on car tax evaders in their nationwide “Tax it or Lose it” campaign.

Statistics have shown almost 500,000 cars did not have any car tax in 2018 meaning thousands of motorists could be risking fines. 

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