10 ways you could accidentally invalidate your car insurance

Car insurance is there to protect drivers financially if they have an accident or if their car is damaged or stolen.

However, a car insurance policy is a contract, and if the driver is seen to have broken the contract, the insurer may refuse to pay out.

There are a few different types of car insurance motorists can take out, and each will give them a different level of protection.

For example, third-party insurance is the minimum legal requirement drivers must have to cover the costs of injury or damage they may cause to other people or their property. It is there in case you are involved in a road accident and someone else claims against you.

Meanwhile, comprehensive insurance, which is usually slightly more expensive, will cover damage to your car as well as compensate a third party involved in an accident.

However, no matter what type of insurance policy you take out, there will be clauses in the contract that the driver must abide by to be covered. If a driver tries to claim on their insurance but has broken a clause in the contract, the insurer may refuse to pay out, leaving them with a hefty bill.

Some of these clauses can be very specific, and drivers often forget to update their insurer on changes in their circumstances and lifestyle which could affect their insurance coverage.

For example, if you fail to inform your insurance company of things such as where you park your car overnight, your occupation or any modifications you have made to your car, your insurer may refuse to pay out in the event of an accident.

Kate Devine, an insurance specialist at MoneySupermarket, said:

“It’s always important to make sure you understand the key provisions of your home and car insurance policies to ensure you’re not caught short.

“Our research shows that acts that might seem innocuous, such as posting a holiday snap online or driving with your dog in the passenger seat, could void your home or car cover and that many Brits are unaware this is the case”.

“You should always familiarise yourself with your policy’s terms before signing on the dotted line, and then re-familiarise yourself to make sure that you don’t accidentally invalidate your car or home insurance through an “innocuous” act”.

10 ways you could accidentally invalidate your car insurance

• Driving with a pet unrestrained on a passenger seat
• Getting a new job and failing to inform your insurer
• Failing to inform your insurer of an accident that damaged your vehicle
• Moving homes and not letting your insurer know
• Under or overestimating your annual mileage
• Providing incorrect information about where the vehicle is kept during the day and overnight
• Using the vehicle for business purposes without having the required business cover
• Having someone named on the policy as the main driver, who is not the main driver of the vehicle
• Not declaring modifications made to the vehicle at the inception of the policy
• Not complying with any restrictions placed on the policy by the insurer.

Breach of insurance

However, if your insurer has refused to pay out but you believe you should have been entitled to compensation, this may be a breach of insurance policy. If this is the case, you may be entitled to make a claim against your insurance company for a breach of insurance.

Sometimes, insurance companies will use tactics to convince their non-lawyer customers that they are not entitled to a payout by quoting the technicalities of the contract. But, although this can sound convincing, sometimes it is wrong, and a breach of the insurer’s contract.

Protections are in place for insurance holders to ensure they get the payout they deserve, and with the help of a knowledgeable solicitor, claims can be made against your insurance company if you believe you should be entitled to a payout.

If you believe you should have been entitled to compensation from your insurance company but they refused to pay, contact Oakwood Solicitors team of legal experts today.

Further reading

Breach of insurance claims – Oakwood Solicitors

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