4 Ways Of Accidentally Invalidating Your Insurance

Insurance

3 min read

Two in five  motorists have admitted to being dishonest when taking out their car insurance - risking a huge fine and invalidating their cover.

But what exactly can invalidate your insurance?

1. Car use

When you are getting a car insurance quote, you’ll be asked about the class of use you need. There are three types; social, social and commuting and business use.

• Social

  This includes driving for personal use only, such as going shopping or visiting friends and family. 

• Social and Commuting

   This provides cover for social and domestic use, as well as driving back and forth to a permanent place of work.

• Business Use

   This cover is used when driving for work goes beyond simply commuting – such as visiting clients or customers during your working day.

If you have the wrong type of usage on your policy, you may find your insurance company refuses to pay out if you need to make a claim.

2. Fronting

As insurance can be quite expensive for young drivers, some parents arrange insurance for their son and daughter by listing their child as an additional driver on their policy instead of the main driver. This is called ‘fronting’ and it is illegal.

The person who uses the car the most should be listed as the main driver on the policy and insurers see ‘fronting’ as fraudulent. Many people who 'front' don’t actually realise it is illegal, and instead mistakenly think they are being savvy with their insurance.

3. Job change

­­Failure to notify your car insurer that you have a new job or occupation could lead to your policy becoming invalidated.

But why?

The job you provide when you request a quote is one of the factors taken into consideration when setting your annual premium – if this changes, it could impact the cost of your policy. For example, if you changed jobs to a delivery courier then you might be considered higher risk, affecting the price you pay.

4. Penalty points and driving convictions

Failing to disclose driving offences is fraudulent and may make your insurance cover null and void. Drivers need to declare any points or motoring convictions they incur when applying for a policy. They should also inform their insurer immediately of any points received during the term of their cover – instead of waiting until renewal.