- Students could be facing fines of as much as £1,000* for failing to change address.
- Insurers could refuse to pay out for claims if they find the address information to be false or incorrect.
- It is a legal requirement to keep details up to date
For the 426,730** UK students settling in to university life, updating their car insurance, drivers licence and logbook may not be top of their list, but as GoCompare Car Insurance has warned, it could leave students with an unwanted, hefty bill in the long run.
According to the DVLA, drivers are required by law to update their driving licence, vehicle log book (V5C), Direct Debit for vehicle tax and other details when they move home - even if it’s temporary.
The same is also true for car insurance, as failing to update your address could result in invalidating your policy and potentially leave you having a claim rejected.
With 18-21 year olds now paying an average of £973*** for comprehensive cover, more than five time the average of all other drivers, any other charges are sure to be sour to the taste, but it’s important you remember to contact your insurer and pay any associated adjustment fees.
Out of 303**** comprehensive car insurance policies, 84 were found to have no adjustment fee, with 52 policies charging less than £20 and 164 charging a fee of £20 or more for any changes.
Matt Oliver, from GoCompare Car Insurance, said: “Being lumped with a £1,000* fine is something few students can afford, but the costs could stretch even higher when it comes to your car insurance. Failing to notify your insurer of changes to circumstances, including your address, could result in you being refused when claiming on your insurance.
“A change of postcode will see your premium fluctuate due to factors like crime rate, risk of accident and how built up the area is, so it’s essential you are keeping your insurer up to date, as they need to assess the risk of your vehicle and adjust your premium accordingly.
“If your car is registered at an address in a city, but you’re moving to an out of town campus, you could see your premium go down, whereas if you’re used to living more rurally, you could see your premium increase if you’re taking your car to a city.
“Another thing to bear in mind is a change in address could result in a change of parking for your car.
“If you’re used to parking on a street, say, but will now be parking on a drive, there’s a good chance your premium will go down. Whereas, if you’re losing driveway or garage parking because of a move, expect your premium to suffer as a result.
“It’s not all bad news though, when looking at the premium for an 18-year-old driver living at home in Bristol, the best average was found to be £1,266 per year, compared to living at university halls in Bristol, where the best average premium was £1,330 – a difference of just £64***** a year on average – a lot easier to stomach than being hit with a £1,000 fine or a rejected claim.”
Notes to editors:
*According to the DVLA website, correct as of 26/09/18.
**According to UCAS clearing analysis on day 28 (13/09/18), 426,730 UK applicants had been placed on courses.
***According to ABI statistics, correct as of 06/02/18
****Based on data from the defaqto matrix – correct as of 27/09/18.
*****Based on a best average standard policy for an 18-year-old driver, driving a 1.2 Vauxhall Corsa, Petrol, comparing the difference of living at home in Bristol, parking the car on a road, and living in university halls in Bristol, parking the car in a secure car park. Original Address (Living at home): £1,266, New Address (University Halls): £1,330. Difference of £64 a year.
GoCompare is a comparison website that enables people to compare the costs and features of a wide variety of insurance policies, financial products and energy tariffs.
GoCompare does not charge people to use its services, and it does not accept advertising or sponsored listings, so all product comparisons are unbiased. GoCompare makes its money through fees paid by the providers of products that appear on its various comparison services when a customer buys through the site.
GoCompare does not sell its customers’ data.
When it launched in 2006, it was the first comparison site to focus on displaying policy details rather than just listing prices, with the aim of helping people to make better-informed decisions when buying their insurance. GoCompare has remained dedicated to helping people choose the most appropriate products rather than just the cheapest, and has teamed up with Defaqto, the independent financial researcher, to integrate additional policy information into a number of its insurance comparison services. This allows people to compare up to an extra 30 features of cover.
GoCompare is the only comparison website to be invited to join the British Insurance Brokers’ Association (BIBA) and is authorised and regulated by the Financial Conduct Authority (FCA).