Can You Void Your Car Insurance Without Even Realizing It?
You probably don’t think twice about your car insurance until you need it. When you buy a vehicle, you put the policy in place, perhaps scan the terms and conditions at renewal time, and make adjustments as your car use changes. But insurance isn’t at the front of your mind during daily life. That’s why you may accidentally void or invalidate your car insurance and have a nasty surprise at claim time.
What are the insurance provider’s rights?
Your contract of insurance is a legal agreement. Your insurance company can deny a claim or cancel your insurance altogether if you haven’t upheld your end of the contract. That goes beyond paying your premium. When you bought the policy, you agreed to use the vehicle in a certain way. You may not realize you have broken your contract, but seemingly small things can put your coverage in doubt. Here are a few examples.
Using your car for ride-sharing
You may love the idea of becoming an Uber driver, but your car insurance covers you for personal use, not commercial activities. Let your insurance provider know you plan to make a little extra cash this way. They may offer you additional coverage, or you may also be able to get insurance from an insurance provider that specializes in ride-sharing operations.
Failing to update your information
It may sound unreasonable, but a simple thing like failing to update your address can void your insurance. Make sure you read the correspondence you get from your insurance provider. Respond even if they ask you to update information that hasn’t changed. Otherwise, you may find your policy cancelled.
Lending your vehicle
When you got your insurance policy, your insurance provider weighed the amount of risk you posed. That assessment looked at many factors, including who would be driving the car. If you start to let someone use your vehicle regularly, your insurance provider may refuse to pay a claim. If the person is a high-risk driver or has a collision, it can pose red flags to insurance companies.
Participating in illegal activity
Perhaps not surprisingly, your insurance may be void if you have a collision while engaged in illegal activity, like transporting drugs or driving while under the influence. It’s always important to exercise caution and follow the rules of the road. That way, you minimize risk and have insurance when you need it.
Failing to report vehicle upgrades
Your vehicle is another factor that your insurance provider weighs when assessing the risk you pose. If you make upgrades to your vehicle, it can increase the car’s value and, in turn, become more expensive to repair. That would lead to higher claim costs, so it’s something your insurance provider wants to know.
When you make changes to your car, have a chat with your insurance company.
Compare auto insurance rates
There’s another way your insurance policy may come up short: if you don’t have enough coverage. Compare auto insurance quotes at InsuranceHotline.com to find the coverage you need at a low price.
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