The most common car insurance mistakes made by Brits have been revealed – and they could invalidate your cover, costing you thousands of pounds.
Due to the rising cost of living, people are keen to save money and one of the ways is to look for cheaper car insurance.
However, submitting so-called “white lies” on a claim to reduce your premiums can have serious consequences.
James Baker of RegCarCheck has analyzed the most common auto insurance mistakes that could land you in hot water, invalidate your insurance, and end up costing you a pretty penny.
Many drivers fill out their auto insurance application while on autopilot and just assume that if last year’s information was correct, it is correct now.
When it comes to the question ‘how is your vehicle used?’ many are content to transition to social household use.
However, Mr Baker says more than half of car crashes have happened during rush hour and drivers must indicate whether the vehicle is in use at any part of their journey, even if it is not s it’s all about getting to the station.
Mr Baker said: “6.49 million Britons have secondary unrest. Using your car to deliver packages, as part of a food delivery service, or even to gather supplies needed to help run your side business counts as using your car for professional purposes.
“Hiding this from your insurance may invalidate your insurance if you are required to declare the purpose of your trip when the accident occurred.”
CLOSED IN A SAFE
Insurance companies base their premiums on the likelihood that a person will need to make a claim.
So anyone who leaves their car on the street overnight is likely to pay more than someone who can keep their vehicle locked in a garage.
Mr Baker said: ‘It can be tempting to declare that your car is kept in a potentially safer place than it is however, if it is stolen from a location close to your property but not outside. where you have indicated it, your insurer may potentially invalidate your claim.”
TO THE END OF THE ROAD AND BACK
All insurance companies will ask for an estimate of the number of kilometers likely to be driven during the year.
Indeed, the more kilometers you travel, the greater the risk of an accident, but a considerable underestimation of this figure could cause you problems.
Mr Baker said: ‘If you claim your insurance and your mileage is much higher than you estimated, the insurer may consider it fraud.’
“Fronting”, is a term used when a driver pretends to be the primary user of a vehicle when it is someone else.
This may be because the main driver has fewer convictions, more experience and/or no previous claims.
Mr Baker said: “The act of ‘coping’ is considered an act of fraud, and not only could your insurance be invalid, but you could face a hefty fine and criminal conviction.”
CLEAN LICENSE, MUDDY CONSCIOUSNESS
Everyone knows that a driving conviction will lead to an increase in their insurance premiums.
Almost a quarter of drivers have admitted to lying to their insurer about their license points, according to Mr Baker.
Insurers may however display your latest information on the DVLA database when you enter your driving license details.
He said: “If you make a claim and they find you have points they are likely to refuse to pay you, potentially costing you thousands of pounds.”
Insurance companies use data to determine the probability of an accident and consider certain occupations to have a higher probability of an accident.
Lying about your profession is considered fraud.
Mr Baker said: ‘This includes stating that you are working full-time, but in fact you are self-employed.’