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Five million at insurance risk

Published: 29/10/2007
Around five million UK workers are at risk of potentially invalidating their car insurance - by using their own cars for company business even though they aren't properly insured, it has been claimed.

Comparison site gocompare.com states that private car insurance typically covers use up until the vehicle is parked in the station car park - but drivers normally need to extend their insurance if they travel to company sites other than their place of work.

Insurers may refuse to pick up the bill for any claims made incurred while the driver is at work - if the vehicle is not covered for business mileage.

"Less favourable tax treatment has seen a considerable number employees opting out of company car schemes," Hayley Parsons, Gocompare.com's managing director, explained.

"Many of these workers now use their own vehicles for informal or ad-hoc company business, for example, attending an off-site meeting or a training course, or carrying out the daily banking. But, our research revealed that five million workers haven't extended their insurance to cover business travel - so could be driving uninsured."

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