Your car insurer needs to know of any change in your circumstances that occurs before the end of the policy year. This is called a mid-term adjustment (MTA).
Your premium can go up or down after an MTA, and if you don't tell the insurer about any changes there's a risk that a claim could be declined or not paid in full.
When would I need an insurance policy adjustment?
There are various reasons you could want to make a mid-term adjustment, for instance:
- Adding a named driver to your policy.
- Selling your old car and buying a new one.
- Fitting a modification to your car.
- Changing personal details, such as a maiden name.
A common reason for an MTA is a change of address. If you move from a city like London or Manchester to somewhere a little less hectic, you might see your premium fall.
On the other hand, if you now live in the country but still work in town, you should tell your insurer about the lengthy car journey each day.
An MTA will also be required if you start using your own car for business or you get points on your licence.
It isn't hard to make an MTA. If you buy a new car, for example, just tell your insurer the new vehicle details. You shouldn't drive until your policy is updated, however.
Do I really want to make an MTA?
If a change in circumstances affects your insurance policy, then you must. Otherwise you may find yourself without cover.
For example, you may decide to park the car that you normally keep in the garage on the road in front of the house. If you don't tell your insurer about this, and something happens to the car, you may not be covered.
Or if you modify your car, your existing policy may not cover that either.
If someone else is going to drive your vehicle temporarily, they won't be covered unless you add them to your policy. You could consider short-term insurance for them, but you must still tell your insurer beforehand.
Even if you're not sure you need an MTA, the insurer will be happy to hear from you – there's no harm confirming that your policy is bang up to date.
Why are insurers cautious about policy adjustments?
Insurers have to be wary of people using MTAs to get a lower premium by being less than honest about the risk they present. For instance, someone might try to add a second person to their policy who's a higher risk driver than themselves.
Is there a charge for an MTA?
Most insurers charge an administrative fee for an MTA, though some providers won't charge for a change made via an online account. Your policy should contain details of any fees.
If you're looking for new insurance, have a look at the charges before you buy. Prices vary from insurer to insurer, so it could really make a difference if you shop around.
Why do providers charge for changes to car insurance?
There are several reasons why insurers may charge you for a change to a car insurance policy. Not only are there staffing costs to answer the call and make the change, but there are often system costs to process and analyse the new information which may include a premium recalculation, and of course, the production of new customer documentation.
Most insurers will only charge customers a reasonable amount to reflect the costs involved in making changes to a policy.
What happens if I cancel my policy during the cooling-off period?
According to UK law, you have 14 days to change your mind about any insurance policy you have purchased. This is known as the 'cooling-off' period, during which you're entitled to a refund. Yet insurers can still charge for however many days the policy was active and they're also allowed to charge an administration fee.
Again, it's probably worth shopping around and asking plenty of questions to avoid surprise fees. If you do feel you have been unfairly charged for an MTA or cancelling your policy, speak to your insurer about it.
Author: The AA. Published 6 September 2017. Updated 29 Jule 2024.
