Changing career, getting promoted or even just getting a part-time job could result in you having your car insurance invalidated, because of a fairly unknown caveat in the terms and conditions, typically.
However, if you admit to the change in your job status, so that your insurer is informed, then you may still be penalised with a fine of up to £50. These “administration charges” are not the only negative, as you may end up facing a higher premium with a different job title.
When a motorist wants to change their job title on their policy, insurance companies will charge an average of £22 in admin costs and premium increases.
Restaurant manager Haydn Jones knows first-hand the issue of insurers needing to know about a change in jobs. He lost £1,200 after his insurer rejected his claim because he had changed jobs. He was informed that his policy was void due to a failure to inform them that he had switched from being a supermarket deliver driver to a barman at a golf club.
His claim was denied despite the fact the moped he crashed (on a slippery road) had nothing to do with his job, and was not used for any work-related purpose. Not only was Haydn off work for 10 weeks because of injuries he sustained, the moped was stolen shortly after.
Rod Jones, of uSwitch, a comparison website, said: “It’s a no-win situation and insurers need to be more transparent. You’re charged excessive fees for being honest but if you don’t tell insurers full information they cancel your policies.
“Ultimately, it costs less for a consumer to be honest and pay the £50 so that you are actually covered, but I don’t understand how this is fair. If you change your car, everybody knows you have to tell your insurer. But, people aren’t clearly told changing jobs means they have to alert their provider too,” he continued.