Motor insurance: What can invalidate it?
The simple mistakes that could leave you uninsured at claim time
Most of us have heard stories about people who have paid their premiums for years yet their insurer has failed to pay out when they needed it most.
It's easy to think this is all terribly unfair, but there are some common mistakes and deliberate mistakes that some drivers make that can invalidate their car insurance.
In the event that you need to file a claim, knowing and avoiding these pitfalls will prevent unpleasant surprises.
Here are some reasons why UK insurers may refuse, reduce, or void a claim.
Drivers Should Avoid These Mistakes
1. Making false statements or failing to disclose information
Honesty is important in most situations, especially insurance! Insurers may reasonably assert that they were misled about your risk level if you don't disclose previous accidents, driving convictions, or how you really use your vehicle.
Inaccuracies of any size can cause problems in the future. When you fail to mention a past speeding conviction, use your vehicle for work when you've declared it for "social use only," or register your vehicle at an incorrect address, your claim could be rejected.
2. Incorrect description of vehicle usage
Purchasing an insurance policy requires you to state how you use your vehicle - for social purposes, for commuting, or for business purposes.
Your coverage may be invalidated if you drive to work but only select "social use."
If you are driving daily to the office or doing delivery work without the correct policy upgrade, you could end up in trouble.
3. “Fronting”
In this type of fraud, the person who drives the vehicle is usually not listed as the main driver, in order to reduce insurance rates.
Insurers take this very seriously and may cancel policies entirely. It's better to pay a little more than to have your claim denied!
4. Undeclared Vehicle Modifications
All vehicle modifications, even those that seem minor, such as tinted windows or new alloys, need to be declared.
If there is a change from the manufacturer's standard specification that could alter the vehicle's risk profile, insurers need to know about it.
5. Failure to disclose convictions or penalty points
If you collect penalty points during the policy term, you must notify your insurer, even if the points are pending. Your insurance may be voided if you fail to do so.
6. Incorrect or misleading occupation information
The job title you hold also influences how insurers calculate risk. It could be considered misrepresentation if you misrepresent it or fail to notify your insurer of a change of employment.
If you use your vehicle for commuting to work, a change in job could also affect your annual mileage, and you will need to update this information with your insurer too.
7. Incorrect Mileage Estimates
Mileage can have a significant impact on your overall premium, but underestimating it can lead to refused claims.
If you declare 5,000 miles a year, but regularly drive 12,000+, it's not on, and it's not difficult to check.
8. Failing to Take Reasonable Care
Drivers are expected to act responsibly, especially in adverse weather conditions. The insurer may deny your claim if you didn't clear your vehicle of snow or ice before you got into an accident.
9. Leaving Your Vehicle Insecure
You may be considered negligent if you leave your vehicle unlocked, your windows open, or your keys inside. In the event of theft, your insurer might deny your claim.
Why It Matters
Every insurer has slightly different terms and conditions, but most follow them strictly. There are times when this won't invalidate the entire policy, but could reduce or invalidate a payout.
If you are found guilty of fraud, your insurance policy may be canceled altogether, making future insurance more expensive or difficult to obtain.
Whenever you buy, update, or use your vehicle insurance, always be honest, accurate, and careful.
A slightly higher premium is far better than risking having your insurance canceled.
