Can You Void Your Car Insurance Without Even Realizing It?
If you’re like most people, you don’t think twice about your car insurance until the time comes to renew your policy or need to make a claim. Once the policy in place, most people just speed read the terms and conditions at renewal time, which is why it’s possible to accidentally void your car insurance and have a nasty surprise when you need to make a claim.
What are the insurance provider’s rights?
An insurance policy is a legal agreement, and an insurance company can deny a claim or cancel a policy altogether if an insured party hasn’t upheld their end of the contract. That goes beyond paying the premium. When you bought your policy, you agreed to use the vehicle in a certain way. While it’s possible you may not realize you’ve broken your contract, seemingly small changes in how you use the vehicle can put your coverage in doubt. Here are a few examples.
Using your car for ride-sharing
While the draw of making a few extra bucks can be enticing by becoming an Uber driver, your car insurance covers you for personal use, not commercial activities. Let your insurance provider know you plan to go this route. They may offer you additional coverage, or you may also be able to get insurance from an insurance provider that specializes in ride-sharing operations.
Failing to update your information
It may sound unreasonable, but a simple thing like failing to update your address can void your insurance. Make sure you read the correspondence you get from your insurance provider. Respond even if they ask you to update information that hasn’t changed. Otherwise, you may find your policy cancelled.
Lending your vehicle
When you got your insurance policy, your insurance provider weighed the amount of risk you posed. That assessment looked at many factors, including who would be driving the car. If you start to let another driver use your vehicle on a regular basis, your insurance provider may refuse to pay a claim. If the person is a high-risk driver or has a collision, it can pose red flags to insurance companies.
Participating in illegal activity
Perhaps not surprisingly, your insurance may be void if you have a collision while engaged in illegal activity, like transporting drugs or driving while under the influence. It’s always important to exercise caution and follow the rules of the road. That way, you minimize risk and have insurance when you need it.
Failing to report vehicle upgrades
Your vehicle is another factor that your insurance provider weighs when assessing the risk you pose. If you make upgrades to your vehicle, it can increase the car’s value and, in turn, become more expensive to repair. That would lead to higher claim costs, so it’s something your insurance provider wants to know.
When you make changes to your car, have a chat with your insurance broker. The brokers and CSRS at DPM Insurance Group are always available to help you determine what policy best suits your needs. Click here to find the office closest to you: https://dpmins.com/locations/