Six in ten drivers (60%) are potentially driving without valid car insurance because they haven’t notified their insurer about a change in their career or job title
Four in ten drivers (41%) are unaware that it’s their responsibility to inform their insurer about a change to their job details in order to keep their policy valid
Updating an insurance policy often comes at a price, with drivers being charged on average £22 to amend their details
94% of drivers believe it’s unfair that insurers charge eye-watering admin fees to make small adjustments to their car insurance policy
com is calling on car insurance providers to be more transparent about their charges and put an end to the excessive admin fees for amending policy documents.
Six in ten UK drivers (60%) are unknowingly at risk of driving without valid car insurance because they haven’t notified their car insurer about a change in job details, according to new research from Uswitch.com, the price comparison and switching service.
Occupation is one of the factors taken into consideration by car insurance firms when setting premiums, and if this changes it could impact the cost of the policy. Because of this, it’s the policy holder’s responsibility to inform the insurer of any changes to their job during the policy term. Yet, 41% of drivers are oblivious to this, with potentially dire consequences. Failure to update your provider about a job change could lead to the policy being invalid and any claims being declined.
However, it’s not just the lack of awareness that’s preventing Brits from staying on top of their car insurance policy. Drivers who have informed their provider and amended their policy have faced an average fee of £22 – but some have been charged an eye-watering £50.
An overwhelming 94% believe it’s unfair that insurers charge excessive admin fees to make small adjustments to their policy documents. This is why Uswitch is calling on car insurance providers to be transparent their additional charges, and put an end to the excessive admin fees for amending policy documents.
Rod Jones, insurance expert at Uswitch.com, says: “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 that policies are kept up to date to ensure they are valid, it’s grossly unfair that 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.”
For more information visit www.uswitch.com or call 0800 093 06 07
Research carried out online with the Uswitch.com Consumer Opinion Panel in August 2015 amongst a sample of 2,310GB adults
Consumers were asked ‘When your working situation last changed, for example you got a new job title, did you notify your insurance provider’ 60% answered no
Consumers were asked ‘Do you think that failure to contact your car insurance provider about changes to your job details such as a new job title, different occupation or profession may deem your policy invalid?’. 64.2% answered “no” to “job title”. 32% answered “no” to “different occupation”. 28.2% answered “no” to “different profession”. (64.2% + 32% + 28.2%) divided by 3 = 41%
Taken from the sample of those polled who said they were charged as a result of notifying their insurance provider that their job had changed, the average cost of those charged was £22.35. 2.4% of this sample said they were charged “more than £50”
Consumers were asked ‘A typical car insurance provider can charge a customer around 30% to update their policy document with job details such as a new job title, different occupation or profession. How do you feel being charged the following changes to your policy?’. When considering ‘change in job title / job promotion’, 76.3% answered it is ‘grossly unfair’ and 17.7% answered ‘it is unfair’. 76.3% + 17.7% = 94%.
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Uswitch is the UK’s top comparison website for home services switching. Launched in September 2000, we help consumers save money on their gas, electricity, broadband, mobile, TV, and financial services products and get more of what matters to them. Last year we saved consumers over £373 million on their energy bills alone.
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