Drivers have been warned to ensure they have the correct car insurance and to update their policy after any changes, no matter how minor, as many may not realise they have the wrong cover until it is too late.
Expert Advice on BBC Morning Live
Speaking on BBC Morning Live, consumer journalist Holly Hamilton emphasised the importance of having the right type of insurance. Host Greg Rutherford revealed that data from the Financial Conduct Authority (FCA) suggests 3 in 10 policies are invalidated every year, and it can be easier than you think.
Holly shared: "The key part is that most of the time, people are not doing it on purpose, and it can happen by accident. It can be something really small, like your address being slightly off, your job title not being exactly what you do, and even ticking the wrong box - it can be as simple as that."
She explained that insurance companies rely on the information provided to assess risk. If any information is incorrect or changes without notification, the insurer can claim the policy was misrepresented, affecting any claim.
Case Study: A Costly Typo
Referring to a recent BBC report, Holly highlighted the case of an 86-year-old woman from York who was convicted in a fast-track court after entering a single incorrect letter in her number plate, rendering her insurance technically invalid. She believed she was insured, but the DVLA prosecuted her for having no insurance. Despite explaining it was an honest mistake, she received a three-month conditional discharge and a £26 victim surcharge.
Holly commented: "Cases like this are very rare, but it does highlight how careful we have to be and how accurate you need to be with these things."
Common Reasons for Invalid Insurance
Holly listed common reasons why claims may be invalid:
- Providing inaccurate information
- Change in circumstances
- Fronting - declaring someone else as the main driver when you are the primary user
- Unsecured pets
- Poor maintenance
- Undeclared purpose of use
- Incorrect odometer reading
She noted that mileage is often underestimated, either accidentally or on purpose, to reduce premiums. "You have to be so accurate with that, do not exaggerate," she cautioned. Additionally, using a vehicle for business purposes requires appropriate coverage; if unsure, contact your insurer directly.
Additional Considerations
Pets travelling in vehicles must be properly secured with a harness or carrier; failure to do so could invalidate insurance in an accident. Getting cover right from the outset is crucial, as errors or omissions, even unintentional, can lead to serious difficulties later.
What to Do If Your Claim Is Rejected
If your car insurance claim is rejected or you are unhappy with the payout, you can challenge it. If the insurer does not change its decision, you can take the case to the Financial Ombudsman Service (FOS) or consider legal action. Confused.com offers a helpful guide on disputing rejected claims and avoiding future issues.
