Car insurance policies could be invalidated by failing to update your home address details

Car insurance policies could be invalidated by failing to update your home address details

12/07/2020

Car insurance: Policeman on what happens to uninsured cars

Car insurance customers may find their agreements have been cancelled for the small error which could see many forced to pay for their own damage costs. A recent survey from insurance experts at Cuvva found that 63 percent of drivers do not read their policy documents in detail leading to possible risks.

Experts at Motorfinity have wanted that as a result of this oversight, many motorists find themselves facing stark consequences.

Daniel Briggs, spokesperson for Motorfinity says address details are crucial as insurance firms take into account crime rates of the local area.

Higher crime rates mean your car is at more risk of being stolen or broken into by criminals which will lead to higher costs.

Speaking exclusively to Express.co.uk, Mr Briggs said: “What most motorists may not know, is that insurers take into account your local crime rates when deciding how much a premium should cost.

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“If there’s a high chance your car could get broken into, based on the address your car is kept, your premiums will rise as the insurance company will see it as them taking a more significant risk.

“That’s also why, when filling out your policy details, there is usually a box to tick to say whether your car sits on its own private drive, shared parking space or occupies roadside parking.

“While they might sound insignificant to you, they play a key role in helping the insurance firm tot up your annual quote.

“So be sure to provide the most accurate and up-to-date address, even if it means you have to pay out a little more because of the location.”

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But updating your details to a different area or region of the UK could see premiums increase as your overall perceived risk changes.

According to MoneySuperMarket, drivers in the South West will pay the cheapest car insurance with an average cost of £328 per year.

Scotland had the second-lowest costs with annual prices standing at just £363 per year on average.

East London drivers continue to pay the most expensive premiums with average yearly costs of £950.

Across London, drivers pay an average premium of £679 per year due to the added risk of damage and theft due to the high population rates.

However, Mr Briggs has warned that thousands of younger drivers could be caught out by registering their vehicle at the wrong address.

Your address must indicate where your car is kept for the majority of the time meaning that students must update their details to their student city.

Failure to do this could see drivers fined up to £300 or invalidate a policy as your details will not be considered to be matching your circumstances.

Drivers without a valid policy registered to their university could also see their vehicle clamped, seized or destroyed.

Mr Briggs said: “Christmas is a time for giving, and a popular ‘gift’ for around this time of year is a car for a teenager.

“Giving them the freedom to travel at their leisure or perhaps to help them make the commute from University to home during breaks.

“For university students for example, who tend to leave home and return to campus in January, leaving your registered address as ‘home’ rather than your halls of accommodation could render your insurance invalid should anything happen.”

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