Car insurance is a legal requirement for all motorists in the United Kingdom, and in most other countries Worldwide, but did you know that in the UK alone, around 43,000 claims are denied by motor insurers each year? Here we have listed 10 of the most common mistakes made when taking out an insurance policy to help you avoid invalidating your insurance:
The postcode of your main address can impact your motor insurance quote, but as tempting as it may be to use a relative’s postcode to bring down your premium, please avoid doing so as it may render your insurance invalid, particularly if your car gets broken into at your actual address and you try to make a claim! It is also important to remember to report any main address changes to your insurer as soon as possible for the same reason.
Motor insurance companies have their own investigative departments dedicated to making sure the information provided by policy holders is correct, so the likelihood is that an incorrect address will be flagged if you try to make a claim further down the line.
Car modifications can affect the cost of your car insurance for two main reasons: if they are deemed to increase the likelihood of a motor collision, or if they will make your car more desirable to car thieves. Not disclosing even minor modifications can leave you at risk of losing out if you end up needing to make a claim.
Your annual mileage is an important factor insurance companies use to quote your premium and as expected, the higher your annual mileage, the higher the cost of the premium. Whilst it can be tempting to disclose a slightly lower mileage to keep the price down, it could end up costing you a lot more in the long run as a claim can be rejected if your vehicle has exceeded the mileage stated on your policy.
Motor insurance covers three types of car usage, these are social only, business only, and social and commuting. If you select the wrong category, you risk not being covered in the event of an accident. For example, if your policy states that your vehicle is only insured for social purposes, and you then try to make a claim resulting from a collision you were involved in whilst commuting for work, there is a good chance that your insurance company may reject your claim!
If you are deemed a “higher risk” policy holder, for example if you are a newly passed driver or have made claims in the past, it can often be tempting to put a “low risk” driver (such as a parent or partner) as the main driver on your policy, and to list yourself as an additional driver instead. Declaring the main driver as a named driver on your policy is a form of insurance fraud and is often referred to as “fronting”. If your insurance company discovers this, your policy will be cancelled immediately with any claims denied. It can also result in the insurer taking legal action against you and, if found guilty, you could face fines of up to £5,000 and six points on your driving licence.
With more than 40% of UK households reporting to own at least one pet, it isn’t unusual to be transporting them in your cars – but did you know that if you have a collision and it is reported you had an unsecured pet in the vehicle your insurance company could refuse to pay out? Having your pets properly secured in your vehicle is now a legal requirement as unsecured pets can cause you to be more at risk of having an accident, as they can distract the driver or physically get in the way preventing you from being able to drive safely.
The occupation you select when searching for a car insurance quote is another essential element motor insurance companies will consider when determining your risk profile. If you try to make a claim, and your current occupation does not match what is stated on your insurance paperwork, you may find your claim is denied. Therefore, it is also equally as important to inform your insurance company of any new job changes to ensure that you are always fully protected.
Whilst most fully comprehensive policies will cover drivers using other people’s vehicles, most of these will only cover them on a third-party basis. This means that if someone else is involved in an accident whilst driving your car or if your vehicle is damaged or stolen whilst in their care, your insurer may not pay out for the damages!
Often if people have a small bump or scrape while driving, only cosmetic damage occurs and when this happens it is common for motorists to fail to report this damage to their insurance providers, as they aren’t planning to make a claim. However, by not informing them of this damage you are likely in breach of your policy, and if you try to claim for any other damages further down the line, if additional damage is found which is inconsistent with the nature of your claim, your entire claim may be refused.
Did you know that by charging friends or colleagues for lifts your car insurance company could technically classify you as a “taxi hire service” which could render your insurance invalid? In fact, some policies will specifically exclude cover for car sharing altogether, whether you are profiting from it or not, so it is always worth reading through the small print of your insurance policy paperwork to check beforehand!
In fact, it is important to read the terms and conditions of your policy thoroughly regardless, to ensure that you are always going to be covered in your current circumstances and that you are not going to make any mistakes which could accidentally result in voiding your policy. If you are unsure about any of the terms stated within your agreement, give your insurer’s helpline a call to gain clarification and always make sure to report any changes which could affect your policy, no matter how small or insignificant they may seem.
