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Fraud-ian slip!

July 2008

You may think you’re a law abiding citizen but if you fail to let your insurer know of any changes in your circumstances, you could risk having your insurance declared void! It’s a scary thought but there are a surprising number of changes which, if you innocently neglect, or forget to tell your insurer about, you could find yourself uninsured in the event of an accident despite making your regular payment.

Here are some top tips on what to watch out for from Mnveer Arkan, head of marketing, at Budget Van Insurance…

Penalty Points - no prizes for this one! This is one of the most common offences, where drivers fail to mention, at renewal, any penalty points incurred on their license. They remain on your driving license for three years but there is a legal obligation to declare any convictions received during the last five years. It’s an offence under the Road Traffic Act to make a false statement or withhold information and your insurer has the right to declare your policy void in these circumstances.

Medical or physical conditions that affect your ability to drive are often overlooked. Some insurers may refuse to insure certain medical conditions, unless the driver has first informed the DVLA, who can subsequently give the driver permission to continue driving.

A change in the use of your vehicle is another consideration. If your vehicle is used for work purposes you are likely to have cover which includes social, domestic, pleasure and commuting. What many of us fail to realise is that if your job involves travelling to more than one location, you must increase your policy to include business use; this can ensure you are covered on those journeys.

Modifications to your vehicle must be listed on your policy as they can affect your premium and any claims made. Any non-standard equipment or modification, such as alloy wheels, could make your vehicle more attractive to thieves and increase your level of risk and consequently your premium. If your vehicle is stolen and you wish to claim for any such modifications - you may not receive the full value of the claim. An exception to this rule is sound systems but if you are in any doubt, check with your insurer. Immobilisers are another exception but they may have the opposite effect and reduce your premium, depending on the make and model.

A change in address is particularly easy to overlook - but few realise the consequences it can have to your premium. Some areas are listed as crime hotspots and moving into these locations could increase the likelihood of your vehicle being broken into and the cost of your insurance. A move as little as one or two roads away might make all the difference. Information on where you keep your vehicle overnight, such as parked in a garage or on the street, may also alter your premium.

Minor incidents including small scrapes or minor break-ins should also be reported. To many, these seem irrelevant or a waste of time, especially when the damage can often be easily fixed. However, being broken into or being involved in small accidents may increase your risk and alter your policy.

Declaring the correct mileage, or a change in the number of annualised miles travelled (if you have exceeded your stated mileage), is also essential information to update your insurer with. Incorrect mileage may invalidate your cover or a potential claim.

Changing your job is another, often overlooked area. Failure to notify your insurer of a change in your occupation can also affect your premium or any claim made.

The most important thing to remember is that if your insurer is not made aware of changes in your circumstances, it could result in claims being rejected and/or your policy becoming invalid. This may in some cases, leave you picking up a potentially hefty tab. If in any doubt it is always best to check, as amendments to your policy cannot be back dated.