Changes to where a car is kept and how it is used could affect a young driver’s insurance cover.
Changes to where a car is kept and how it is used could affect a young driver’s insurance cover.(Image: Getty Images )
Young drivers taking a car to college or university this month are being urged to check their insurance policy before heading off to campus.
Thousands of students across the country will be starting or returning to university over the coming weeks, with many living away from home during term time. However, seemingly small changes to where a car is kept or how it is used could affect an existing insurance policy.
Hastings Direct has highlighted five common mistakes for students to avoid, including failing to tell their insurer where their car will be parked overnight and not having the correct cover if they drive to a part-time job.
Young drivers should also make sure their expected annual mileage remains accurate if moving away from home changes how often they use their car.
Steve Hiscock, Head of Commercial Claims at Hastings Direct, said: “Starting university is an exciting time, but it often brings changes that can affect your car insurance.
“Many young drivers don’t realise that, even taking their car with them during term times, seemingly minor details, such as a change of address or where a vehicle is parked overnight can impact their policy.
“Failing to update your insurer with these small details could result in issues if you ever need to make a claim.
“That’s why it’s worth taking a few minutes to review your cover to make sure it accurately reflects how you’ll be using your car while at university. This can help avoid potential stress or expense further down the line.”
MoneyHelper also advises motorists to tell their insurer about changes that could affect their policy. Factors used by insurers when calculating the cost of car insurance can include someone’s address, how many miles they drive and where their vehicle is parked.
Below are five mistakes Hastings Direct says students should avoid.
Putting a parent down as the main driver
Young drivers may be tempted to name a parent or guardian as the main driver on a policy in an attempt to reduce the cost of their insurance.
However, if the student is actually the main user of the vehicle, this is known as “fronting”.
MoneyHelper warns fronting is illegal. It says the person using the car most should be listed as the main driver.
Hastings Direct warns fronting could result in a policy being cancelled or a claim being rejected and could make it more difficult to obtain insurance in future.
Not having the right cover for driving to work
Students who take on a part-time job, placement or internship should check whether their existing policy covers the journeys they make.
Social, domestic and pleasure cover may not include driving to and from a regular place of work.
Students who will use their car to commute should therefore check with their insurer whether commuting needs to be included in their cover.
Not updating where the car is kept
A student may have taken out their policy using their family home address but then take the car with them when they move away to university.
Hastings Direct says insurers need to know where a vehicle is primarily kept and students should not simply assume their parents’ address can remain on the policy.
MoneyHelper says someone’s address is among the factors insurers take into account when determining the cost of car insurance.
Not updating where the car is parked overnight
Students should also tell their insurer if the place where their vehicle is normally parked changes.
This could include moving the car from a driveway at the family home to on-street parking, a university campus, student accommodation or a private car park during term time.
Where a vehicle is kept overnight can affect the risk assessed by an insurer and potentially the price of the policy.
Giving an inaccurate mileage estimate
Moving to university can significantly change the number of miles someone drives.
Some students may barely use their car after moving to campus, while others could regularly drive between university and their family home.
Hastings Direct advises students to update their insurer if they expect their mileage to be significantly higher or lower than the estimate originally provided.
MoneyHelper also advises drivers to be accurate about how much they expect to use their vehicle and the distances they are likely to cover.
Students should contact their own insurer if they are unsure whether changes to their circumstances need to be recorded on their policy.
