There is no denying that a car insurance policy can be packed with jargons and can require a vast amount of paperwork. But it is always in your best interest to give it a thorough read since it is usually the most innocent slip-ups that cause the greatest damage. Overlooking simple rules can not only jeopardize your car insurance policy but can also result in your entire premium going waste, resulting in you paying for the damages out of your own pocket.
Here is our round-up on the ways to avoid invalidating your car insurance policy:
Always Be Honest
Fraudulent and dishonest claims are a major reason for the cancellation of a car insurance contract. Lying on your application form, forged claims or deliberately going against the rules can not only invalidate your current car insurance policy but can also affect the future policies you buy.
Declare All Modifications
Car modifications affect the performance, safety and the worth of your car. From an insurer’s perspective, your car is potentially at increased risk. All modifications should be clearly mentioned in your application. For changes made during the insurance term, the insurance company should be notified in advance to adjust your premium as not doing so will get your future claims rejected or even worse, invalidate your policy.
[How Is Your Car Insurance Premium Calculated?]
Observe Traffic Rules
By violating traffic rules, you may not only end up on the wrong side of the law, but can also face trouble with your insurance company. Insurers do not entertain any claims on accidents due to reckless driving, failing to fasten seat belts, driving under the influence and other such breaches. To keep insurance premiums down and your policy intact, ensure that you aren’t breaking any traffic laws.
Follow A Routine Maintenance Schedule
Like any other machine, your car suffers regular wear and tear. It is important to follow the manufacturer’s recommended maintenance schedule not just for the health of your car but also for your own safety. Insurance companies do not take any financial responsibility if the reason for a claim is proven to be a lack of regular maintenance. As a penalty, your policy might even be at risk.
Lock Your Car
It is possible to leave your car unlocked by accident, while at other times you may be tempted to leave it unlocked if you’re stepping out for a few minutes. It should, however, be noted that if the established cause of theft is negligence and the car was not broken into forcibly, insurance companies can refuse to pay out.
Be Honest About Your Car Usage
Using your car for any other purpose than what it has been covered for is an offense since it breaks the terms of your agreement with your insurance company and is enough reason to invalidate your cover.
Loan Out to Named Drivers Only
If you are going to let someone else use your car, make sure they are named in your insurance policy. All claims made in case of an accident while your car was being driven by an unnamed driver can be rejected. Furthermore, this breach can also lead to cancellation of your policy.