Urgent warning as millions at risk of car insurance price hike or invalidating policy
Failing to disclose certain key information could lead to drivers being hit with increased car insurance costs this summer.
More than one million drivers across the UK may be slapped with higher car insurance premiums or have their policy completely cancelled for hiding certain information from firms.
Speed awareness courses may appear less serious than picking up penalty points on a driving licence and keeping this hidden from an insurer may seem harmless.
However, failing to disclose information about an awareness course could dramatically backfire under certain circumstances.
Although there is no legal obligation to contact a car insurance provider that drivers have attended a course, motorists cannot lie.
This means road users must reveal details if companies specifically ask motorists whether they have been on a course or are due to visit one.
Mark Tongue, Joint CEO and Founder of Select Car Leasing, stressed attending a course could "still affect premiums" with some drivers at risk of increased fees.
He explained: "Many motorists will jump at the chance to take a speed awareness course instead of receiving points on their licence.
"But it’s also important to note that in the small print of many speed awareness courses, it clearly states that while you won’t get points on your licence, you may be asked if you had to do a speed awareness course by your car insurance company - and that this could STILL affect your premiums.
"The reality is that some insurers might view the need to attend such a course as indicative of sub-standard driving behaviour, which could mean they charge slightly higher premiums despite the motorist having no formal penalty on their record.
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"It is crucial to understand the legal and contractual consequences of nondisclosure.
"If your insurer specifically asks if you have attended a speed awareness course, and you fail to provide the correct information, it could invalidate your insurance policy.”
According to Select Car Leasing, more than 1.4 million motorists take part in speed awareness courses across the UK every 12 months.
Lying about a course may be considered a type of insurance fraud that can land road users in serious trouble.
This could see drivers placed on the Insurance Fraud Register (IFR) for up to five years with motorists denied access to insurance services in the future.
West Yorkshire Police has also warned motorists about the importance of always telling the truth when it comes to car insurance firms.
The force advised: "It is always best to disclose all information to your insurer even if you think it is irrelevant.
"Note that all insurers are different and whilst the above information represents the general position, you should always check with your insurer to be sure."
