It is also a legal requirement, and there are a number of small things that could accidentally invalidate it.
This is because there are different classes of insurance, which cover different activities.
What types of car insurance are there?
For personal use, there are three different types of car insurance:
- Social, domestic and pleasure (SDP): This covers personal car use only, such as visiting family and friends and running errands.
- SDP + commuting: This covers the above but also includes driving to and from a single, regular place of work.
- Business use: This level of insurance means you’re covered for personal use and driving for all work-related purposes, beyond commuting. So, if you’re someone who visits clients or travels between multiple work sites, this would be the required coverage.
What habit could invalidate your car insurance?
Many drivers believe that fully comprehensive car insurance covers you for all scenarios, but this isn’t always the case.
Jake Lambert, temporary car insurance expert at Tempcover, explains: “The reality is that your insurance policy is only valid when you’re using your car in a way it’s intended to be used.
“If you use your vehicle in a way your policy doesn’t allow, you’re effectively uninsured.
“That’s why even something as simple as driving to a last-minute client meeting could put you at serious financial and legal risk – unless you have the right cover in place.”
Driving to an off-site work meeting is a small habit that could invalidate your car insurance without you even realising.
Jake adds: “If an incident were to occur when driving to or from an offsite work meeting, and you only have an SDP or SDP + commuting policy, your insurance company may deny your claim.
“You could be considered to have been driving uninsured, carrying the same penalties as someone with no insurance at all.
“The minimum punishment you could receive is a fixed penalty fine of £300 and 6 points on your license.
Recommended reading:
“However, if you were to be summoned to court, you may receive an unlimited fine, driving ban, 8+ penalty points or even disqualification.
“In these instances, the police also have the power to seize and impound the vehicle on the spot.”
If your main policy does not cover business use and you need to make a work-related trip, a temporary policy can help.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.