Vehicle insurance is essential for every car owner in Australia. While your cheap car insurance policy may help your vehicle stay covered for damage and aid you in making hassle-free claims, you also need to know the do’s and don’ts of your insurance provider so you don’t confront claim denials in the journey of your vehicle usage. Voiding your car insurance – unintentionally or not – will defeat the sole purpose of having vehicle insurance. Check your insurance provider’s car insurance online portal for more information.
With premiums on the rise, vehicle owners may risk their luck and find ways to cut costs on their vehicle insurance policies. But there might come a day when you bang your head on the steering wheel as you realise you have to clear a vehicle loan for a car you can’t use, due to the damages your insurer won’t cover. This is precisely why you need to take care so your insurance provider doesn’t void your vehicle insurance.
What are the most common reasons for the voiding of car insurance?
Incorrect use
If you have insured your vehicle for casual use but are driving it for commercial purposes, then expect your insurer to decline your claim if you damage it while driving it commercially. You need to give the correct information to your insurer about your vehicle’s domestic or commercial use if you wish to get good cover for your car that protects you at all times.
Illegal/Uninformed Modifications
If you wish to pep up your ride by incorporating modifications, then talk to your insurer first before implementing your fancy plan. You need to know about the permitted and illegal modifications. Also, seek information on how specific vehicle components’ additions, upgrades, or replacements affect your car insurance premium.
If you haven’t informed your insurer about the changes made to your car, then you may suffer a blow as claim rejection.
Pay premiums on time
If the premium payment will bounce, let your insurer know so you can work it out together. Always make sure you pay your premiums on time if you have opted for a monthly payment, as there is more room for error. Annual payments could do you a world of good as you will be done with your payment work in one shot, and you may receive discounts from your insurer for an upfront payment of the entire premium. On the other hand, withholding information from or misleading your insurer about the payments may invite severe risks in terms of penalties in the long run.
Fraud
Withholding relevant information or providing incorrect information like your frequency of vehicle use, the primary driver of your vehicle, the purpose of vehicle usage, etc., may be considered fraudulent activity. You can be sure about your claim being denied and your policy potentially voided when you file a claim after indulging in such acts. Talk to your insurer to know more about this.
Fronting
Distorting the truth about the actual primary driver of your vehicle may not tip the scales of luck in your favour. Some vehicle owners who are experienced may list themselves as primary drivers despite certain young or inexperienced drivers using their vehicles more regularly. They do this with the sole intention of lowering their payable car insurance premiums. This act voids your policy.
Whether you have the best car insurance or cheap car insurance, you must adhere to the rules and regulations stipulated by your car insurance policy. If you wish to seek any clarifications on policy voiding, read the policy disclosure statements, check the car insurance online portal, or reach out to your insurer.
