Ways You Can Accidentally Invalidate Your Car Insurance
Car insurance is crucial for protecting yourself against numerous potential risks. When buying insurance, apart from getting adequate coverage, you need to know how your auto insurance policy could be invalidated. Some ways you can nullify your car insurance policy include fronting, underestimating mileage, car modifications, and providing inaccurate information.
Fronting
When assessing risk, insurance providers will typically consider the driver's age. Teenage drivers are seen to pose a higher risk than experienced drivers. This implies that teenage drivers often pay greater insurance costs than older drivers.
To avoid high premiums, a driver may ask a low-risk driver to pose as the primary policyholder and add them as a named driver. This is called fronting. In most cases, fronting is considered insurance fraud. Therefore, if you are guilty of fronting, your policy will be canceled and any claims you have will be denied.
Underestimating Mileage
When applying for auto insurance, it is crucial to calculate the distance you drive every year. The insurance provider will ask for this information before setting the premium for your policy. Many people tend to lie about their mileage to save a few bucks. Underestimating the mileage figure is gross misinformation that could lead to the invalidation of your insurance policy.
Car Modifications
It is normal to desire a new look for your car. Many people upgrade their cars to keep up with the current fashion and trends. However, you need to inform your insurance provider about any car modifications.
First, remember that any modifications to your car will increase its value. Expensive cars usually attract high premiums. Also, if the value of your vehicle increases, it is more likely to be targeted by thieves. Therefore, your risk will increase.
Additionally, the cost of repairing a car modified with expensive add-ons will be higher than what your insurance had agreed to. Failing to notify your insurance provider about any car modifications will nullify your auto insurance policy.
Giving False Information
In insurance matters, honesty is the best policy. If your insurance contract is based on lies, your insurance policy is invalid. Insurers create a risk profile on drivers to determine how likely they are to make claims. Their risk profile is based on variables like location, occupation, age, and driving history.
Your policy will be invalidated when you provide false information to get a low quote. Additionally, if you indicate your vehicle is for social purposes and use it to commute to work, you are illegally driving it. Therefore, if you are involved in an accident, your claim is null and void.
To learn more, contact an auto insurance agency in your area.
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