Car insurance is a two-way agreement. The insurer agrees to insure your car and, in return, you must ensure your vehicle and driver meet certain criteria. If you’re meticulous, there is only a slim possibility that your insurer could void your claim and the insurance policy.
Some common mistakes that can void car insurance include:
This may seem obvious, but you may not be aware that drugs can include some medicines such as cold and flu tablets, painkillers, sleeping pills, and others that may impact your driving ability. Finding car insurance after DUI can be difficult as most insurers don’t cover you if your blood alcohol level exceeds the legal limit. You should also remember the limit varies based on the type of licence you hold.
If you have a history of drunk driving convictions, getting car insurance may become costlier. With a history of driving under the influence of alcohol, insurers perceive you as a higher risk. How much does insurance cost after DUI depends on the number of convictions and suspensions on your record.
Your vehicle’s tyres undergo regular wear and tear while driving, and ‘tread wear’ indicators within these can help you identify when you need to replace the tyres. The legal minimum tread depth is 1.5mm, and anything below this can be one of the reasons for being refused car insurance. Insurers may also render the insurance void if you don’t maintain your vehicle with regular servicing and ensure it is in good driving condition.
Do you know what modifications void car insurance? Modifications like changing the suspension, a customised paint job, or the addition of bull-bars can void your policy if you don’t inform the insurer. You should check the policy document to check the modifications that are covered by your insurance company.
If you drive your car for ridesharing services like DiDi or food deliveries like Uber Eats without informing your insurer, your car insurance may become void. If you plan to use your vehicle for any business purpose, it’s important to inform your insurer and get an extension on the policy for this cover.
Another reason why your car insurance may become void is by overloading. This is if you carry more people or a larger load than your vehicle is designed to carry. One example is when you load a large number of boxes while moving house. The insurance may also become void if you tow an overloaded trailer.
The possibility of theft significantly increases when you leave the keys in the ignition. Even if you’re stepping out for a short period, lock your car to reduce this risk. Another reason for car insurance becoming void is to park your vehicle in an area other than the one listed when buying the policy.
Another common mistake is forgetting to pay the renewal premium. When you don’t pay the premium on time, the policy can be cancelled. For monthly payments, it is recommended to set up an auto-debit facility to ensure you don’t miss the payment date. If you pay an annual premium, ensure you pay it on or before the due date to ensure continued cover.
If you don’t meet the requirements, there is a chance that you may be denied insurance coverage. The policy disclosure statement (PDS) outlines the policy guidelines, and you should read the PDS to understand your responsibilities before applying for the insurance policy.
There may be additional situations that can lead to your car insurance policy becoming void. It’s advisable to read the PDS to understand all the exclusions.
This article was reviewed by Alex Ritchie before it was published as part of RateCity's Fact Check process.
