DRIVERS have been warned that they could face a hefty fine and even losing their car for a little-known insurance error when buying a used car.
Brits could find themselves coughing up hundreds or facing a driving ban if they fail to make a simple check.
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Nicholas Shaw, director of operations at temporary insurance provider Dayinsure, urged motorists to look out for a key loophole in their policies which could land them in hot water.
While many may think that their insurance covers them all the time on the roads, it’s often actually the combination of the car and its driver that is insured.
Just this week, insurers warned that you could be fined thousands for borrowing a mate’s car based on this principle.
This is because while the car may be insured, you are not necessarily insured to drive it.
Only the person who applied for the policy are legally able to use the motor, as well as any named drivers they have added to it.
However, what is even less well-known is that this idea actually still holds true when it comes to buying a used car.
Before collecting it from the seller, it is vital that you make sure you are insured to drive that specific vehicle.
Even if you have an existing policy, that may well only cover you to drive the car you are replacing.
This even applies to test driving, though some dealerships will have independent insurance policies covering them so always check.
And getting caught without cover can lead to severe penalties.
Nicholas said: “Driving without valid insurance is a serious offence and could result in costly fines, confiscation of the vehicle and a licence suspension.
“It may also make purchasing insurance in the future more expensive and reduce the number of options available to you.
“It is not worth taking this risk, even if you think you will only be driving for a very short time.”
Fortunately, there is a quick check you can make to see if you are safe to drive your next car.
Quite often, insurance policies include a Drive Other Cars (DOC) clause where you are covered regardless of which car you are driving.
Always check to see if you have a DOC before picking up your next car to keep yourself on the right side of the law.
If you don’t then before taking possession of the car you will need to contact your provider and give them its details to be added to your policy.
Adding a new car to the policy is often done for no charge but, depending on the characteristics of the vehicle, it could cause your premiums to go up or down just like when you change details on a new insurance application.
It comes after another motoring expert shared a simple tweak that could knock hundreds off your insurance bill.
That may well be more important than ever as average insurance cost hit their highest level on record in 2023.
