Car insurance policies could be invalidated if drivers lie about where they live

Car insurance agreements can be axed by insurers if road users simply forget to update their new address or purposely like to bring down premiums. Experts at CarParts4Less warn this could involve declaring a car is at your house while motorists stay at a partner’s over lockdown.

“It can be tempting to put down your home address as somewhere different – your house when you’ve been staying at your partner’s over lockdown for example. 

“However, doing so can mean your insurer can refuse to pay out, for example, if your car is broken into in the location it actually resides.”

Compare the Market says where you live affects your premiums because 90 percent of all claims occur within five miles of a driver’s home. 

Firms look at data such as how many personal accident claims have been made by drivers in the area and how many uninsured drivers are around. 

Experts at the firm have revealed areas such as Bradford, Oldham, Manchester, Liverpool and Birmingham are considered some of the highest risk areas in the UK. 

London also comes at a premium as high population is matched with higher crime rates compared to many areas. 

Compare the Market says the lowest risk areas in the UK are Redtuthm, Penzance, East Inverness and the Angusor Isle of Barra in Scotland. warns motorists that providing insurance firms the wrong information could put drivers at risk of invalidating their agreement. 

Any blatant mistruth which firms could have used to calculate a more genuine insurance price would be considered lying and may lead to drivers being prosecuted for fraud. 

In some cases road users could be blacklisted by all major car insurance firms which will prevent them getting competitive policies in the future. 

This will force drivers to secure specialist cover which is often more expensive than those offered by more traditional firms. 

Analysis from Compare the Market has revealed motorists in the South West have the cheapest average premiums with drivers charged just £590.48 per year for cover. 

Drivers in Scotland, Wales and the South East are also some of the cheapest areas in the nation with average costs below £700. 

This is a stark comparison to average prices in London where costs are calculated at a massive £1,156.26 for cover. 

Yorkshire and the Humber, West Midlands and the North West also saw average cover rise above £800 in a major blow for cash-strapped motorists.