Drivers fined by police after insurers stop cover with no warning
The Financial Ombudsman Service says that they've seen a spike in complaints about policies being stopped without any warning and that, in the worst instances, motorists only find out about it when they've been pulled over for driving with no insurance.
The Ombudsman says that those who allow their insurer to renew their policies automatically, but don't realise that they must declare any change in circumstances since first purchasing the cover, are the people most at risk.
Basically, if your insurer thinks that things are different, they may cancel your policy and there's a chance they won't tell you. It seems that motorists who have benefited from reduced premiums for having a no-claims discount are also at risk from getting their policy cancelled without being told.
And this is not to be sniffed at, as the penalty for driving without insurance is six points on your licence and a £300 fine. The Financial Ombudsman says: "These types of communication breakdowns can have very serious consequences for the people affected."
So if your car insurance automatically renews, it is worth contacting your insurer and seeing if you can change that option or, indeed, ask them to provide you with clear correspondence of any changes in your policy.