What invalidates car insurance?
There are a few ways in which you can invalidate your car insurance, preventing any kind of payout in the event of an accident. Some are obvious and severe (e.g. lying on your insurance application), but there are ways to invalidate your cover by accident if you're not careful. We'll go over both in this guide.
In This Guide:
- 5 ways you could be invalidating your car insurance policy
- How does an invalid car insurance policy affect my premium?
5 ways you could be invalidating your car insurance policy
Risk profile manipulation - Insurers build a risk profile on you to assess how likely you are to make a claim. This is based on your age, location, occupation and driving history, among a host of other factors. Lying about any of these in order to reduce your quote could result in your policy being invalidated.
Non-declaration of incidents - If you’re involved in an incident, whether you’re at fault or not, you must inform your insurer even if you don’t intend to make a claim. This is because your insurer needs to know whether the incident is likely to happen again, and you’ll find most policies include a clause requiring you to let your insurer know.
Visit our guide for more information on making car insurance claims.
Classes of use - Whether you use your vehicle for social purposes, commuting to work or for business determines the circumstances in which you can legally drive it. You must inform your insurer of exactly how you use your vehicle to avoid invaliding your policy.
Fronting - Fronting is adding a low-risk person as a main driver to a policy in order to bring down an overall quote. For example, parents may be inclined to take out policies in their name for vehicles predominantly driven by their children; who, as high-risk drivers, face larger insurance premiums if they were to take out their own policy. If the main driver listed on a policy is not just that, then not only will your policy be invalidated but you could also face fraud charges and a fine.
Modifications - You must notify your insurer of any modifications made to your vehicle, even minor ones. This is because often they can increase the value of your vehicle, in turn making it more expensive to repair or replace in the event of a claim, as well as making it more susceptible to theft.
How does an invalid car insurance policy affect my premium?
Whenever you take out a new policy, you’ll need to declare if you’ve had any voided policies in the past. As a result, some companies may refuse to insure you while others might push their premium prices up, costing you more.
In the UK it’s illegal to drive without insurance, so if your policy becomes invalid but you continue to use your vehicle, you’re breaking the law and could face serious charges.