Ten widespread errors that would void your car insurance – Somerset Reside
Auto insurance prices have hit a seven-year low, partly due to Covid-19, although it's important not to make common mistakes despite lower prices.
Slight mistakes can be made when updating your car insurance, including providing incorrect information whether by mistake or not.
Some mistakes can land you in court as misinformation can be classified as fraud.
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The last thing anyone wants is to make one of these mistakes and potentially get into big trouble.
Therefore, with the help of CarParts4Less, we have helped identify ten simple mistakes that can invalidate your car insurance.
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Lies about your main address
Car insurance premiums may vary depending on the zip code, as some areas are more likely to be thefts and break-ins. It can be tempting to give your home address as a different place where your car is parked every night – at your parents' house during your studies, for example, or at your home if you live with your partner five nights a week.
However, doing so can result in the possibility of your insurer refusing to pay claims, for example if your car is broken into where it is actually located.
Insurance companies have special investigation units (SUI) that ensure that the information about your insurance and your claims is correct. While you might think you can get away with not updating your address, the chances are you will find out if you make a claim.
Ignore your morning commute to work
There are three types of car use that are covered by insurance; just social, social and commuting and business. Only social insurance covers driving for social or recreational purposes; driving to and from friends, going to the supermarket, etc.
Commuting to and from work, or even to and from the train station, is not covered by this policy, so an upgrade to social and commuting is required even if you only commute a few times a month.
Insurance companies can deny or reject claims made while commuting to work if the policy is for a social purpose, even if it is a one-time policy.
If you use your car for work other than commuting, such as going to meetings or carrying equipment, you will need professional insurance.
Do not notify your insurer of changes to the car
Car modifications can affect your insurance premium for two reasons; if they increase the likelihood of an accident or if they increase the likelihood of theft.
Optional add-ons for brand new cars, including something as simple and common as installing it in a sat nav, can affect insurance. Hence, it is important to consider these options when applying for insurance.
Your insurer must also be informed of any changes made during your policy as this may require a policy change.
Do not inform your insurance company about minor accidents
In the case of small bumps or minor accidents that only cause cosmetic damage, it is common for drivers to have their car repaired without complaint.
But even if you do not want to make any claims, it is important that you inform your insurance company of any damage received, as this does not constitute a breach of your policy.
This helps in the event that the other driver changes their mind and decides to make a claim, and also ensures that the damage is taken into account if you need to make a claim after future incidents – damage that a claim doesn't compatible could result in your claim being denied.
Young driver insurance often costs more than groups considered to be less risky, and some motorists try to bypass these higher premiums by naming a low risk driver such as a parent or partner as the primary policyholder and adding the real motorist as the named driver.
If you are caught "fronting" your policy will be immediately canceled and all claims denied. Again, these cases are often brought to court as they are classified as insurance fraud, with fines of up to £ 5,000 and six points on your license.
Used more miles than you thought
Your annual mileage is one of the main factors in calculating your insurance premium; the higher the mileage, the higher the costs. It is important to be as specific as possible when giving this number rather than just guessing as your insurance provider may decide not to pay a damage if your mileage is higher than you estimate.
When calculating your mileage, don't forget to include weekend trips, weekly shopping, etc and add some emergency miles – better to play it safe!
Driving with pets
When you are in the car with your pet, you have a legal obligation to make sure it is secured. Unsecured pets can increase a car's risk of accidents as they can distract the driver or even physically hinder them while driving.
If you collide with an unsecured pet in the car, your insurance company will likely refuse to pay for your damage.
Let others drive the car
While it is possible for your friends or family to get insurance policies that allow them to drive other people's cars, these policies are unlikely to cover damage to the vehicle in the event of an accident.
It is more than likely that your own policy will only cover vehicle damage that occurs with a named driver in the car. So while your friend can legally drive it, accidents that do occur may not be eligible for a claim.
You recently changed jobs
Your current occupation is one of the factors used to determine your risk profile. Therefore, it is important to update your insurance company whenever you have changed jobs or occupations.
If these are not adhered to, claims that are made after changing jobs can be rejected by your insurer.
Charging for elevators
Some policies specifically exclude car sharing coverage, whether you are making a profit or not. For those whose policies allow ridesharing, making a profit from offering ridesharing may be void – many state that you may only earn enough to cover gasoline and commuting bills.
Earning money by offering ridesharing can identify you as a “taxi rental service” and get a policy that doesn't cover that void.
It is important to always read the terms of your car insurance policy to ensure that you have not accidentally invalidated the policy.
Keep your insurance provider informed of any change in circumstances, whether you find it relevant or not, as some seemingly unrelated life changes can affect your premium.