This article is by Morad Benmoussa, UK Head of Customer Care, Prima, and it looks at the importance of reminding customers about notifying their insurer when life changes.
In an increasingly fast-paced world, it’s easy to overlook small but important tasks. However, one task you don’t want to overlook is updating your car insurance details which can lead to severe financial consequences. Keeping your insurance details up to date is not just a bureaucratic chore; it’s a crucial step in ensuring you remain protected in the event of an accident or claim.
New research from Prima has found that nearly a third (31%) of 2,000 UK adults surveyed haven’t checked their car insurance details in the last six months. The research of 2,000 UK adults also shows that 1 in 4 (26%) were unaware that outdated personal details could cause their claim to be rejected. Discrepancies associated with incorrect personal details can lead to your policy being invalidated, meaning any claims you make could be rejected. Additionally, having incorrect information on your driving licence, such as an outdated address, can result in a fine of up to £1,000
Keeping your insurance policy up to date ensures that any changes in your driving circumstances are reflected, which can be a big help in the case of a claim. For example, if you change address or jobs and don’t update your insurer, your premium may no longer reflect the risks associated with your new circumstances. Despite these risks, 7% of people surveyed confess to not updating their policy even when they know their details are wrong or have changed and when asked why, a staggering 34% said they believed minor changes weren’t important. Not telling your insurer about changes to your circumstances can result in gaps in your cover, leaving you exposed to significant financial risks.
While many people might feel that minor changes don’t warrant immediate updates, it’s better to be safe than sorry and to protect yourself from the additional cost that can come from not having accurate cover.
At Prima we contact our customers 30 days before their policy is due to end and provide them with their renewal offer. We also encourage them to let us know if their cover still meets their needs and provide them with the opportunity to update their details to help ensure they receive the most accurate price based on their circumstances.
Updating your policy isn’t just about avoiding penalties, you may also be able to save money. Regularly reviewing your policy ensures your level of cover matches your current needs and that you can get the best possible price when it’s time for you to renew. It’s particularly important to get in touch immediately if you’ve made (or are planning to make) modifications to your car, changed jobs, or even adjusted your annual mileage.
A few minutes spent reviewing and updating your policy today can save you from costly surprises down the line. It is also the responsibility of insurance companies to ensure that they are committed to providing their customers with clear, transparent, and timely communication, so that their customers can prevent any mistakes which would invalidate their coverage and lead to rejected claims.
Providing clear guidance and instruction can build trust between customers and insurance companies while encouraging proactive engagement, reducing financial consequences that can come about from a lack of knowledge. In an unpredictable world, ensuring you’re properly covered is one small step that can make a big difference and give you peace of mind.
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