Car insurance providers can refuse payouts on any claims if a motorist has not updated their provider about a new job title or role. Insurers use this information to help determine the overall risk of having an accident and claiming on a policy due to factors such as where you are travelling and how long you are on the road.
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This means changing job could see your car insurance premiums go up or down based on the overall threat of insurers needing to pay out on a claim.
Even simple changes such as a job title change or promotion must be communicated to an insurer to make sure motorists do not get caught out and refuse payment.
A MoneySupermarket survey found almost a quarter of motorists have previously failed to inform an insurer when they change their job.
Data from uSwitch found six in ten UK motorists were unknowingly breaking the terms of their contract by failing to update an insurer about work-related details.
The survey found 41 percent of individuals did not know changes to a job title or description could invalidate their policy at all.
Matt Oliver, spokesman of GoCompare car insurance said: “Forgetting to notify your issuer of changes to your circumstance, including your job or address, could result in you being refused when claiming on your insurance.”
“A change of job could see your title change, and certain job titles will carry higher or lower risk factors than others – so you would see your premium fluctuate to reflect this.”
Motorists must also be aware charging job could mean needing a whole new insurance policy altogether to ensure the correct cover is being provided.
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If you are driving back and forth to a permanent place of work or motorists will need to ensure they have the social and commuting car insurance policy equipped.
Those who plan to use the car as part of the business day such as a driving instructor will need to upgrade their policy to cover this which could lead to higher premiums.
These classes of use tell an insurance provider what you’re most likely to use your vehicle for and allocate prices accordingly.
Motorists who are using their car all day as part of their job are more likely to have a car accident than someone using a vehicle once a week.
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Motorists need to be as truthful as possible in their car insurance applications to ensure they are taking out the right policies.
How to save money on car insurance
Car insurance prices can be expensive and motorists can make savings by making slight tweaks to a job title as long as it is still an accurate reflection of the work you do.
Motorists cannot state they are lawyers if they are a writer or teacher as this would be stretching the truth too far and could be seen as inaccurate.
However, small updates on a job title can see you make savings as these professions are deemed lower risk than others.
Young people at university and elderly people will save money by stating they are a student or retired rather than unemployed.
Research from GoCompare showed motorists who described themselves as a chef paid around £278 more than someone who wrote down cook.
Hairdressers paid an average of £209 less than barbers and solicitors paid £159 less than lawyers in massive savings.
Kevin Pratt, Consumer affairs expert at MoneySuperMarket said: “It’s worth taking your time and exploring your options at each stage of the online journey.
“For example, if you describe yourself as ‘unemployed’ when in fact you’re a student, you’re retired or you stay at home to look after the home and family, you could end up paying up to 50 per cent more for your cover than you need to.
“Regardless of occupation or status, drivers should avoid settling for the renewal quote they receive from their existing insurer because firms tend to reserve their best prices for new customers.”
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