RECENTLY I’ve spoken to several people who hadn’t realised that they needed to tell their insurance company about new penalty points on their driving licence.
They knew it was something that they had to disclose when renewing their insurance but didn’t realise that it could invalidate their policy if they didn’t let their insurer know straight away.
Of course it might make a financial difference to your policy but imagine the huge cost if you were involved in an accident, only to find out your insurance wouldn’t pay because you hadn’t notified them.
You need to give them the penalty code from your driving licence, e.g. SP30, the fine you paid and number of points you received.
Your insurance policy booklet will talk about your duty of disclosure and what changes you must tell them about, if you don’t tell them about these changes then they can reject your claim.
It’s not just obvious things such as moving house or changes to the vehicle that you need to tell your insurance company about, another key one that people forget is if you are diagnosed with a medical or physical condition that affects your physical condition to drive or you change occupation.
If in doubt, consult your policy booklet or just call the insurance company to let them know, it’s better to be safe than sorry.
Don’t put off telling them about changes like penalty points because this could prove very costly if you are involved in an incident, even if it isn’t your fault.
Mike Waters is director of market insight at Arval, Europe's leading fleet and fuel management company.