Car insurance could be invalidated if drivers 'circumstances have changed' in lockdown

Car insurance agreements must have up to date details and any changes must be reported to insurers as soon as possible. Failing to do this could leave drivers in a “difficult situation” and risks policies being completely invalidated.

“We recommend motorists check their car insurance policy to make sure it is up to date with their current circumstances before getting behind the wheel again.

“Or they could be breaking the law by driving a vehicle on a road or in a public place without insurance.”

Money Super Market has confirmed insurance firms will take a postcode into account when they set premiums for car insurance.

They added there was always a chance your premium could even fall if you move to an area with a lower crime rate.

According to Compare the Market, insurance underwriters will study statistics in your local area to work out how much of a risk your postcode is.

Data will include population density, traffic density, chrome rates, personal injury claims and the number of accidents in an area.

Data from the group found London was the most expensive place to insure a car with drivers paying an average of more than £1,000 per year.

The North West, West Midlands and Yorkshire and the Humber also had expensive insurance costs with drivers paying between £773 and £809 for cover.

However, more rural regions such as Scotland, the South West and Wales saw lower rates with drivers set to pay below £600 per year.