THE most common car insurance mistakes Brits make have been revealed – and they could invalidate your cover, costing you thousands of pounds.
Due to the rising cost of living, people are eager to save some money and one way is by searching for cheaper car insurance.
However, submitting so-called ‘white lies’ on an application to reduce your premiums can have some severe consequences.
James Baker at RegCarCheck has analysed the most common car insurance mistakes that could land you in hot water, having your insurance invalidated and end up costing you a pretty penny.
Many drivers fill out their car insurance application while on auto pilot and simply assume that if last year’s information was correct, it’s correct now.
When it comes to the question ‘how is your vehicle being used?’ many just jump to social domestic use.
However, Mr Baker says that more than half of car accidents happened during the hours of rush hour and drivers should state if the vehicle is being used at any part of their commuting journey, even if that’s just driving to the station.
Mr Baker said: “6.49million Brits maintain a side hustle. Using your car to deliver parcels, as part of a food delivery service or even to gather the products needed to aid in the workings of your side hustle, counts towards using your car for work purposes.
“Masking this from your insurance holds the potential to invalidate your insurance if you are required to declare the purpose of your journey when the accident occurred.”
LOCKED IN A SAFE
Insurance companies base their premiums on the likelihood of someone needing to make claim.
So, anyone leaving their car on a street overnight is likely to pay more than someone who can keep their vehicle locked up in a garage.
Mr Baker said: “It may be tempting to state that your car is kept in a potentially securer place than it is however, if it’s stolen from a place that is near your property, but not where you stated, your insurance provider can potentially invalidate your claim.”
TO THE END OF THE ROAD AND BACK
All insurance companies will ask for an estimation of the number of miles that is likely to be driven over the year.
This is because the more miles you do, the greater the risk of an accident but vastly under estimating that figure could land you with problems.
Mr Baker said: “If you claim on your insurance and your mileage is well over what you estimated, the insurance provider may consider this to be fraud.”
‘Fronting’, is a term used when a driver claims that they are the main user of a vehicle when, it’s someone else.
This could be because the main driver has fewer convictions, more experience and/or no previous claims.
Mr Baker said: “The act of ‘fronting is considered an act of fraud, and not only could your insurance be invalid, but you could face a hefty fine and a criminal conviction.”
CLEAN LICENCE, MUDDY CONSCIENCE
Everyone knows that getting a driving conviction will lead to a rise in their insurance premiums.
Nearly a quarter of drivers have admitted to lying to their insurance provider about points on their licence, according to Mr Baker.
Insurers though are able to view your latest information on the DVLA database when you enter your driving licence details.
He said: “If you are making a claim and they discover that you hold points, they will likely refuse pay out, costing you potentially thousands of pounds.”
Insurance companies use data to determine the likelihood of an accident and consider certain occupations to hold a higher probability of an accident.
Lying about your occupation is considered fraud.
Mr Baker said: “This includes stating that you are in full time employment but in fact, you are self-employed.”