Working from home due to coronavirus could invalidate your car insurance policy

Car insurance providers may axe policies because drivers fail to stick to their designated policy limit as they try to take on extra tasks. Motorists may also break their estimated mileage quotas as they could use their cars more often instead of public transport. 


  • Motorists lie to insurers to reduce costs but run serious risk

Classes of use  

Policies are split into different classes of use depending on how often a car is driven and for what reasons the vehicle may be used for. 

Those on a social policy are only really allowed to use their cars for personal reasons such as visiting family members.

However, with many road users working from home many motorists may start to use their car for extra tasks. 

Some workers who rely on public transport may have a social policy in place but could be forced to use their vehicle more often as services are restricted. 

They could then use their car for business reasons such as picking up clients or travelling to a local branch for meetings. 

According to simply dropping off a partner at their jobs could also cause motorists to be caught out. 

This could technically invalidate an agreement as it would not be part of your car insurance class of use. 


With people urged to stay away from close contact with others and public transport agreements cancelled, cars will be used more regularly. 

However, when motorists take out an agreement they must estimate how many miles they are predicted to travel each year. 

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These estimates are used by car insurance agreements to determine average premium prices for each policy. 

According to Compare the Market underestimating your mileage could cause your insurance provider to refuse any payouts on claims. 

Insurers may show some leniency for those who have made a mistake but those who have been found to purposely mislead a provider could be caught out. 

Offenders risk being blacklisted by traditional car insurance firms and may be forced to pay higher prices from specialist providers. 


  • Car insurance could be invalidated by using parking service

How will car insurance operate during coronavirus?

The Financial Conduct Authority (FCA) has urged insurance firms to provide information to consumers about how policies could be affected during coronavirus. 

The FCA said some companies have made an effort in the difficult conditions but said they expected companies to communicate any issues to customers. 

They called on firms to treat customers fairly in difficult circumstances and urged insurers to not impact claims processes for customers. 

Chrstopher Woolard, interim Chief Executive of the FCA said: “Customer behaviour is changing. We expect insurance firms to recognise this and treat their customers fairly, recognising the circumstances customers may find themselves in. 

“We would not expect to see a customer’s ability to claim affected by circumstances over which they have little control.

“Any customer concerned about their insurance should consider contacting their provider with any questions they may have.”

The Association of British Insurers says motorists will still be covered by any agreements for travelling for essential reasons during the crisis. 

A spokesperson from the ABI said: “The FCA rightly recognises that insurers are making significant efforts in difficult operating conditions.

“Insurers are doing everything possible to support their customers at this worrying time.”

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