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How getting a job promotion could invalidate your insurance

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Written by:
04/11/2015
As many as two thirds of drivers are driving without valid car insurance because they haven’t notified their insurer about a change in their career or job title, according to uSwitch.com research.

Occupation is one of the factors taken into consideration by car insurance firms when setting premiums. If this changes, it could impact the cost of a policy.

The figures suggest that 41% of drivers are unaware that it’s the policy holder’s responsibility to inform the insurer of any changes to their job during the policy term. Failure to do so could lead to the policy being invalidated, and any claims made being declined.

It’s not just a lack of awareness preventing drivers from staying on top of their car insurance policies. Motorists who have informed their provider of their new job title have faced an average fee of £22 for updating their policy and some have been charged as much as £50.

Almost all drivers (94%) believe it’s unfair  insurers charge excessive admin fees to make small adjustments to policy documents.

Rod Jones, insurance expert at uSwitch.com, said: “Millions of drivers are changing careers and job roles, blissfully unaware of the potential impact on their car insurance policy. A change in job title may seem insignificant but it could change your premium – and if you fail to inform your insurer about it, you risk invalidating your policy altogether.

“Yet, while it’s critical policies are kept up to date to ensure they are valid, it’s grossly unfair consumers are being saddled with huge admin fees. We’re calling on insurance providers to be transparent about their charges and put an end to the excessive admin fees for amending policy documents. Some providers have already decided to waive these fees, but we’d like to see other providers follow suit.

“Until then, consumers can avoid surprise administration fees by reading the small print before taking out a car insurance policy. If you’re likely to move house or change jobs you will need to change your policy details, so consider any admin charges as well as the final premium when taking out your policy. Shopping around and comparing a number of providers will help get the best deal for you.”

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