Thousands of moving Brits risk invalidating car insurance and £1,000 fine

UK drivers are being warned to avoid common mistakes that can invalidate their car insurance cover, leaving them unable to claim for personal and third-party injuries in the event of an accident, as well as facing serious legal and financial consequences.

One particular mistake is more common this time of year and can even lead to a £1,000 penalty fine from the DVLA.

Nicholas Shaw, Director of Operations for the temporary car insurance experts, Dayinsure, explains: “With August being the most popular month to move home, thousands of Brits are currently at risk of invalidating their annual car insurance policy - and could be hit with a hefty fine - if they don’t update the address.

“This is because your insurer uses your address to determine your risk level, which affects your premium. Factors such as crime rates, parking availability, and accident likelihood in your area are considered. An incorrect address at the time of a claim can invalidate your policy, leading to a denied payout and unlimited costs and liability in the case of an accident.”

But your insurance provider isn’t the only company you need to contact with your new address. Many drivers make the mistake of failing to notify the DVLA by updating their driver’s license and vehicle’s logbook.

“It’s vital to notify both your insurer and the DVLA when you move house,” said Nick. “It’s typically a quick and easy job to do, and will ensure you have the cover you need, if an incident was to occur.”

Nicholas shared four further little-known insurance mistakes which could leave Brits with serious financial and legal consequences.

Driving with unsecured pets

Fine: £5,000

Points: Up to 9

For all pet owners who are in a rush, this is one to particularly look out for. The rules around this only came into force quite recently, so it’s important not to get caught out.

If your animal is not secure and is freely roaming around your car at the time of an accident, this could invalidate your insurance policy.

This is because an unsecured pet increases your risk of driving without due care and attention, as this poses a distraction from the road.

Rule 57 of the Highway Code says: “When in a vehicle make sure dogs or other animals are suitably restrained so they cannot distract you while you are driving or injure you, or themselves, if you stop quickly.”

Therefore, having an unrestrained pet in a moving vehicle could result in being slapped with a £5,000 fine, as this could cause an accident and be a danger to other road users.

Not reporting minor accidents 

Fine: Up to £5,000

Points: Minimum of 5

You might think that minor incidents, especially those that weren’t your fault, don’t need to be reported to your insurance provider, but that isn’t the case. 

Accidents change your driver risk level, so they should always be reported. You can submit accidents without intending to make a claim though and indicate that they weren’t your fault.  

Even though a lot of people don’t like to make reports because they believe it could hike up their policy amount, don’t be fooled into thinking your insurance provider won’t find out about the accident. Any other party who was involved might have already contacted their own provider, who in turn could tell yours. 

Additionally, if you don’t stop at the scene or report an incident you could risk committing a criminal offence. Failure to report can carry a fine of up to £5,000 and a minimum of 5 points.

Undeclared car modifications  

Fine: Up to £2,500

Points: 3

Not all car modifications will automatically invalidate your car insurance, but those that are undeclared potentially could. This typically includes exhaust modifications, turbos, body kits and more performance enhancements. 

With triple (197%) the number of searches for ‘lower suspension’ since last month and searches for ‘tinted windows’ up 54% in the past three months, motorists are warned that modifications must still meet safety standards and mustn’t interfere with or obstruct the drive of the car.

If modifications are deemed illegal, not only could they invalidate your policy even if you have declared them, but you could also be hit with a fine as high as £2,500 and 3 points added to your license.

Forgetting about your MOT

Fine: Up to £1,000

Points: 3

Having an up-to-date MOT is a legal requirement for almost every vehicle to ensure it is safe to drive on the roads. Although there are exceptions for driving to a pre-arranged MOT test, you should ensure to renew yours before it expires to show that the car is roadworthy and avoid any issues with your insurer.

Driving without a valid MOT will leave you financially vulnerable as your insurer will not pay out for claims if you haven’t ensured that your car is roadworthy.

What’s more, if you are found to be driving without an MOT, you could be fined £1,000 and given 3 points on your license, or even be banned from driving.

It's easy to forget when your MOT is due, especially if you have multiple vehicles or a busy schedule. To avoid this, consider setting a reminder on your phone or calendar. You can also check your vehicle's MOT certificate for the expiration date. Nicholas also shared general advice on making sure your car insurance stays valid:

• Ensure you take out the correct policy to begin with – Small details can make a big difference, so take care to fill out your form accurately. If you need short-term cover, or someone needs to borrow your car, choose temporary car insurance.

• Keep your personal details up to date - If your circumstances change, your insurance provider must know too.

• Inform your insurance provider about changes or incidents – No matter how small, make sure your insurance provider is aware.

• If in doubt, check your contract or policy wording – Don’t make assumptions, contact your provider for clarification or look at your policy documents if you aren’t sure about something.