Car insurance firms may refuse to pay out for claims during a car crash if road users do not have valid car tax policies in place. This could leave many road users caught out just months before new 2020 car tax changes come into effect.
A total of nine percent of those surveyed said they had forgotten to renew their car tax despite the risks involved in not getting an updated tax policy.
Fully-electric vehicles are exempt from car tax charges but road users must declare this to the DVLA to avoid costs and invalidating their cover.
Rod Jones insurance expert at uSwitch says: “With claims now running into the thousands of pounds, people can’t afford to make a careless mistake that could invalidate their cover and leave them out of pocket.
“It is therefore really important that drivers note down their key renewal dates, and avoid making the easy to forget mistakes to ensure they are covered by should they ever need to make a claim.”
Motorists without car tax in place could be issued with a strict £1,000 fine.
However, car insurance companies could invalidate your policy because you would be breaking the law.
Many insurers include terms and conditions clauses which say polices will be axed if you commit a motoring offence as this could be viewed as negligence.
In a statement, RAC Drive experts said: “If your car doesn’t have tax then you can’t legally drive it on UK roads.
“This means that any insurance policy you have taken out for your car will be invalidated.”
Invalidated car insurance agreements can have a devastating impact on road users who may struggle to get cover in the future once an agreement has been axed.
This could force road users to purchase a specialist car insurance policy which can often be more expensive than traditional agreements.
DVLA crews are cracking down on car tax evaders in their nationwide “Tax it or Lose it” campaign.
Statistics have shown almost 500,000 cars did not have any car tax in 2018 meaning thousands of motorists could be risking fines.