What Can Invalidate Your Motor Insurance?
What Can Invalidate Your Motor Insurance?
You arrange your insurance, pay your premium and expect the cover to be there if you need to make a claim. But problems can arise if the information on your policy is inaccurate, your circumstances change or your vehicle is different from when the policy was first arranged.
That does not mean every mistake automatically invalidates your insurance. Depending on what has happened and the terms of your policy, an insurer could reduce or decline a claim, change the terms of cover or, in more serious cases, cancel or void the policy.
Here are some of the common issues to be aware of.
1. Providing inaccurate information
The information you give when arranging insurance helps an insurer decide whether it can provide cover and on what terms.
You should take reasonable care to answer questions accurately and completely.
Problems can arise if, for example, you:
Fail to declare relevant driving convictions or previous claims when asked
Provide an incorrect address
Give inaccurate information about how the vehicle will be used
Incorrectly identify the main driver
Fail to declare vehicle modifications when required
A genuine mistake is not necessarily treated in the same way as deliberately providing false information. What happens will depend on the circumstances and what the insurer would have done if the correct information had been provided.
2. Having the wrong class of use
How you use your vehicle can affect the cover you need.
A policy covering social, domestic and pleasure use may not include commuting, while commuting cover does not necessarily include business journeys, travelling between workplaces or making deliveries.
If the way you use your vehicle changes, check that your policy still reflects your circumstances.
This can be particularly important if you:
Start commuting by car
Change jobs or workplace
Begin driving between different business locations
Start using the vehicle as part of your work
Begin delivery or courier work
Do not assume a journey is covered simply because you are driving your own vehicle.
3. Fronting
Fronting happens when somebody is declared as the main driver of a vehicle when another person is actually its principal user, usually in an attempt to obtain a lower insurance premium.
A common example is a parent being listed as the main driver of a vehicle that is mainly driven by their son or daughter.
Fronting is a form of insurance fraud and can have serious consequences, including a claim being declined or the policy being treated as invalid.
Always make sure the genuine main driver is correctly identified.
4. Failing to declare vehicle modifications
This is particularly important for owners of classic, specialist and enthusiast vehicles.
Changes do not necessarily have to involve major performance upgrades. Depending on the insurer and policy, modifications could include:
Alloy wheels
Tinted windows
Suspension changes
Exhaust systems
Engine tuning or remapping
Bodywork alterations
Lighting changes
Interior modifications
For older or classic vehicles, changes made during restoration or previous ownership may also mean the vehicle is no longer completely to its original specification.
Modifications can affect an insurer's assessment of the vehicle's value, performance, repair costs or theft risk.
If you are unsure whether something needs to be declared, check with your insurer or broker.
5. Not updating important policy details
Some changes during the policy term may need to be reported.
Depending on your policy, these could include:
Moving home
Changing vehicle
Changing how the vehicle is used
Adding or removing drivers
Making vehicle modifications
New penalty points, motoring convictions or other changes to your driving licence
Notification requirements vary between insurers, so check your policy documents to see which changes need to be reported and when.
If something significant changes, it is better to check than wait until you need to make a claim.
6. Changes to your occupation or working arrangements
Occupation is one of the factors insurers may consider when assessing motor insurance risk.
If you change jobs, become self-employed or significantly change the type of work you do, check whether your insurer needs to be told.
A change in employment could also affect other parts of your policy, such as:
Your annual mileage
Your usual commute
Where the vehicle is kept
Whether you need business use
The important thing is that your policy continues to reflect how the vehicle is actually being used.
7. Underestimating your annual mileage
Your annual mileage is an estimate, but it should still be realistic.
If you originally expected to cover around 5,000 miles during the year but your circumstances change and you are now likely to drive considerably more, check whether your insurer needs to know.
This may be particularly relevant if a vehicle that was previously used only occasionally is now being driven more regularly.
Previous MOT records, service history and your current odometer reading can all help you estimate your typical annual mileage.
8. Not following policy conditions
Motor insurance policies contain conditions and exclusions that can affect whether a particular claim is covered.
These can vary between insurers and may relate to:
Vehicle security
Keys
Approved drivers
Where the vehicle is kept
Agreed mileage limits
Modifications
Reporting accidents, thefts or losses
For specialist and classic vehicle policies, there may also be particular requirements relating to storage, security or use.
Always check the terms that apply to your individual policy rather than assuming all motor insurance works in the same way.
9. Leaving your vehicle insecure
The circumstances surrounding a theft can also affect a claim.
Leaving your vehicle unlocked, leaving the keys inside or failing to meet specific security requirements could potentially affect the cover available.
Depending on the vehicle and policy, insurers may also have requirements relating to immobilisers, alarms, trackers or secure overnight storage.
If your policy includes security conditions, make sure you understand and follow them.
Does a mistake automatically invalidate your insurance?
No.
If incorrect information comes to light, what happens next will depend on the nature of the mistake, the circumstances and the terms of the policy.
It can matter whether the information was provided carelessly or deliberately and whether the insurer would have:
Offered the same cover
Charged a different premium
Applied different terms
Declined to provide cover
Depending on the circumstances, a claim could be reduced or declined. More serious cases involving deliberate or reckless misrepresentation can have greater consequences.
Check your policy before you need to make a claim
The easiest time to correct inaccurate information is before anything happens.
If you have recently moved, changed jobs, altered your mileage, modified your vehicle or started using it differently, take a moment to check that your insurance details still reflect your circumstances.
Classic and specialist vehicles can also change over time through restoration, upgrades and replacement parts, so it is worth checking that your insurer has an accurate picture of the vehicle you own today.
If you are unsure whether something needs to be declared, check your policy documents or speak to your insurer or broker.
It is better to clarify something now than discover after an accident, theft or other loss that your cover is not what you expected.
Looking for specialist motor insurance?
Peter Best Insurance Services arranges insurance for a wide range of classic, specialist and enthusiast vehicles.
Whatever you drive, making sure your insurer has accurate information about the vehicle and how you use it can help ensure your cover reflects your circumstances.
Find out more about Peter Best Insurance Services
Insurance cover, terms, conditions, exclusions and notification requirements vary by insurer and policy. Always check your policy documentation and contact your insurer or broker if you are unsure whether a change needs to be declared.
