Change your address or risk a fine when taking a car to university
Worse, insurers could refuse to pay out on claims if they find address information to be false or incorrect.
There are 426,730 UK students settling in to university life this month. They are required by law to update their driving licence, vehicle log book (V5C), Direct Debit for vehicle tax and other details when they move home – even if it’s only for term-time. They also need to change address on their car insurance. Not doing so may invalidate the policy.
With 18-21 year olds pay an average of £973 for comprehensive cover, more than five time the average of all other drivers. Some insurance providers will have an adjustment fee, depending on where you are moving from and to. Go Compare found that of 303 providers, 84 didn’t charge an adjustment fee, with 52 policies charging less than £20 and 164 charging a fee of £20 or more for any changes.
Matt Oliver, from GoCompare Car Insurance, said: “Being lumped with a £1,000 fine is something few students can afford, but the costs could stretch even higher when it comes to your car insurance. Failing to notify your insurer of changes to circumstances, including your address, could result in you being refused when claiming on your insurance.
“A change of postcode will see your premium fluctuate due to factors like crime rate, risk of accident and how built up the area is, so it’s essential you are keeping your insurer up to date, as they need to assess the risk of your vehicle and adjust your premium accordingly. If your car is registered at an address in a city, but you’re moving to an out of town campus, you could see your premium go down, whereas if you’re used to living more rurally, you could see your premium increase if you’re taking your car to a city.”