Thousands to have policy invalidated by not updating work details after losing their jobs

Martin Lewis on how to get cheaper car insurance

Experts at Motorfinity warn not updating a change of employer on your policy could lead to policyholders refusing to payout on policies. This could catch out thousands of motorists who have lost their jobs as a result of the coronavirus pandemic and are now seeking new employment.

Those who are out of work will need to change their agreement to unemployed instead of their previous job title as soon as possible.

Data from the Office for National Statistics has revealed a record number of redundancies between August and October with 370,000 people left out of work.

The most recent unemployment rate stands at 4.9 percent with an increase of 0.7 percent over the previous three months.

A total of 1.69million people were considered to be unemployed with rates expected to increase early next year.

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Daniel Briggs, spokesperson for Motorfinity said the “insignificant change” could leave many policies axed.

Speaking exclusively to Express.co.uk, he said: “It can be easy to forget to update a change in employer on your car insurance policy.

However, forgetting a seemingly insignificant change such as this could result in you invalidating your car insurance should you need to make a claim.

It can be a quick and easy process to make the change. Depending on your provider, your details can also be updated via a phone call or short online form.

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“You may be charged an admin fee, and you might see your premium increase or decrease, as a result of the change.

The start of a New Year can sometimes be a busy period for the jobs market, with many people looking to start afresh.

“So it’s worth bearing in mind if you, or someone you know, plans to start a new job in 2021.”

However, the Association of British Insurers (ABI) has previously revealed some support is in place for those affected by the pandemic.

Road users who have to drive to work instead of getting public transport will still have their policy valid and will not need to contact their insurer to extend their cover.

They say those who work in a critical sector and need to use a car to drive to different locations for work purposes will not see their cover at all affected.

Under usual circumstances, drivers may have had to update their class of use to a commuting policy for longer journeys but this is no longer required under the temporary measures.

MoneySuperMarket confirms insurers do take into account what you do for a living to set premium prices.

They add drivers must update their details as soon as possible to ensure firms do not have incorrect information on file.

Motorists will be paying the wrong premiums and will be turned down for a claim leaving many to pay for repairs themselves.

In a statement online, the RAC adds: “Occupation title and type are factors insurers consider when setting premium, as well as whether you use the vehicle to commute.

“Failing to tell your insurer of these changes could invalidate your cover and leave you uninsured.”

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