Every motorist must have car insurance. However, its validity depends on the information you give to the insurance company and what you are doing with your car. Providing false information or failure to update your information, whether intentionally or accidentally, could lead to the invalidation of your insurance.
That means the insurance company can reject a claim or cancel the policy depending on the severity of the situation. In some cases, you could even end up in court if the issue is considered fraud.
Therefore, it is crucial to understand how vehicle insurance works and the various things that can lead to its invalidation. Here are mistakes that could invalidate your car insurance.
1. Lying About Address
Car insurance premiums are set based on various factors, including location. Some areas have higher premiums than others if they have high theft or break-in rates. So, it may be tempting to put down a different address if you live in a theft-prone area.
For example, if you leave your car at your parent’s house but have filed a different address, your claim could be denied if a break-in happens at your parent’s and your vehicle is stolen or damaged.
Therefore, you must give the correct information when getting automobile insurance in Naples, FL and never think you can get away with false details.
2. Not Mentioning Car Modifications
Modifying your car impacts your insurance premiums because it increases the probability of an accident and theft.
Therefore, when taking auto insurance plans, mentioning if you have modified your car is crucial. It will change the policy and your premiums, but it will be worth it if you file a claim.
Younger drivers’ insurance costs more than older adults because the group is considered riskier and more likely to be involved in accidents. Therefore, they avoid getting higher premiums by taking insurance under their parent or partner and adding themselves as the drivers.
It is known as fronting, and if caught, your policy will be canceled, and any claim you make will be denied. Fronting cases also end up in court since they are considered insurance fraud. That means you could get a fine of more than $4000.
4. Failure to Inform the Insurer About Minor Accidents
It is common for car owners to fix cosmetic damages from minor accidents without informing the insurance company.
However, this can lead to the invalidation of the policy if you plan to make a claim. Therefore, informing your insurer of any minor accidents you might have had is vital to ensure the damage will be considered if you file a claim in the future.
5. Allowing Someone Else to Drive Your Car
Your family members or friends likely have insurance policies that cover them when driving other people’s vehicles. However, it is unlikely that the policies cater to the damage to the car in an accident.
Therefore, it is likely that your cover caters to damage that happens when you are driving the vehicle yourself. So, it is crucial to consult a reliable company like Del Toro Insurance to understand third-party coverage and whether your friends or family are covered in case of an accident.
6. Not Mentioning Morning Commuting
Insurance also covers a car based on usage. Social only, business and social commuting are the main types of usage covered by insurance.
Therefore, the company may deny a claim if you take a social-only policy and fail to mention you use the car for commuting.
Consequently, you need to upgrade the plan to social and commuting. However, you will need a business cover if you use the vehicle for business only.
In a Nutshell
Taking car insurance means you agree to comply with the terms and conditions. Failure to comply means you risk invalidating the policy.
The insurer may cancel the cover or deny your claim. So, be familiar with things that can result in the invalidation of your plan to be safe.