How can your motor insurance be invalidated?
You take out car insurance, pay your premium and expect your cover to be there if you need to make a claim. But what happens if some of the information on your policy is wrong, your circumstances have changed or you've altered your car without telling your insurer?
Certain mistakes or omissions can cause problems with your motor insurance. That doesn't necessarily mean your policy will automatically become invalid, but depending on the circumstances and the terms of your policy, an insurer could reduce or decline a claim, change your cover or, in more serious cases, cancel or void the policy.
Here are some of the common issues worth checking.
1. Giving inaccurate information when you take out or renew your policy
The information you provide when arranging car insurance helps an insurer decide whether it can cover you and on what terms.
You have a duty to take reasonable care when answering the questions you're asked, so check the details carefully rather than making assumptions.
Incorrect information could include:
Failing to declare relevant driving convictions or previous claims when asked
Giving the wrong address for where you or the vehicle are normally based
Incorrectly identifying the main driver
Providing inaccurate information about how the car will be used
Failing to declare a modification when asked
A genuine mistake does not necessarily have the same consequences as deliberately providing false information. What an insurer can do will depend on the circumstances, the information involved and whether it would have offered cover on different terms had it known the correct details.
2. Having the wrong class of use
How you use your car matters.
For example, a policy covering social, domestic and pleasure use may not provide the cover you need if you also regularly drive to work. Likewise, commuting cover doesn't necessarily include driving between different workplaces, visiting customers or other business journeys.
If your driving habits change, check whether your existing class of use is still suitable.
This can be particularly important if you:
Start commuting by car
Change jobs or workplace
Begin travelling to different business locations
Start using your vehicle as part of your work
Don't assume a journey is covered simply because you're using your own car.
3. 'Fronting' a car insurance policy
Adding an experienced driver to a policy is perfectly legitimate when the information provided is accurate.
Fronting is different.
It happens when somebody is declared as the main driver when another person is actually the vehicle's principal user, usually in an attempt to obtain a lower insurance premium.
One common example is a parent being listed as the main driver of a car that is actually driven primarily by their son or daughter.
Fronting is a form of insurance fraud and can have serious consequences, including a policy being treated as invalid and claims being declined.
Always make sure the genuine main driver is correctly identified when arranging your insurance.
4. Failing to declare car modifications
Modified cars are one area where it's particularly important to check what your insurer needs to know.
A modification doesn't have to involve a major engine upgrade. Depending on the insurer and policy, changes from the manufacturer's standard specification can include things such as:
Alloy wheels
Tinted windows
Suspension changes
Exhaust upgrades
Engine tuning or remapping
Body kits and spoilers
Changes to lighting
Interior alterations
Modifications can affect an insurer's assessment of performance, value, repair costs or theft risk.
The Financial Ombudsman Service has dealt with cases where claims were affected because significant modifications hadn't been declared. If you're unsure whether a change counts as a modification, check with your insurer before making the alteration.
For modified car enthusiasts in particular, choosing insurance designed with modified vehicles in mind can help ensure the insurer understands the car you're actually driving.
5. Not keeping your insurer informed when circumstances change
Buying your policy isn't necessarily the last time you'll need to check your details.
Your policy documents should explain which changes you need to tell your insurer about during the policy term. These could include significant changes such as:
Moving home
Changing vehicle
Changing how the vehicle is used
Adding or removing drivers
Making modifications
New penalty points, motoring convictions or other changes to your driving licence
Not every change will necessarily affect your premium or cover, and requirements vary between policies. However, if something significant changes, check your policy documents or speak to your insurer rather than waiting until renewal.
6. Your occupation or working arrangements have changed
Occupation is one of the pieces of information insurers may use when assessing a motor insurance risk.
If you change jobs, become self-employed or significantly change the type of work you do, check whether your policy requires you to update your details.
A change in employment can also affect other parts of your insurance. For example, a new job could mean:
A longer commute
Higher annual mileage
Driving to several different workplaces
Using your car for business journeys
The important thing is to consider the overall effect the change has on how your vehicle is being used.
7. Your annual mileage is no longer realistic
Nobody expects you to know your mileage to the exact mile when arranging annual insurance. It's an estimate.
However, it should be a realistic one.
If you originally expected to drive around 5,000 miles during the year but a change in work or personal circumstances means you're now likely to cover considerably more, check whether your insurer needs to know.
Your policy terms may require you to update the insurer if your expected mileage materially changes.
You can get an idea of your annual mileage by checking previous MOT records, service history or your vehicle's odometer and considering whether your driving habits have changed.
8. Not following important policy conditions
Your insurance policy includes terms and conditions that can affect whether a particular loss is covered.
These can vary significantly between insurers, so it's worth understanding any requirements relating to areas such as:
Vehicle security
Keys
Approved driver
Where the vehicle is kept
Telematics devices, where applicable
Modifications
Reporting accidents or losses
Don't rely on assumptions about what 'comprehensive' insurance means. Comprehensive policies can still contain exclusions, limits and conditions.
9. Leaving your car or keys insecure
Vehicle theft is another area where the circumstances surrounding a claim can matter.
Leaving a vehicle unlocked, leaving the keys inside it or failing to comply with specific security requirements in your policy could potentially affect a theft claim.
Keyless vehicles also bring additional considerations, so it is worth following sensible security precautions and checking whether your insurer has any specific requirements relating to keys, immobilisers, trackers or other security devices.
Does incorrect information automatically invalidate your car insurance?
No.
This is an important distinction.
If an insurer discovers that information provided when a policy was arranged or changed was incorrect, the outcome will depend on the circumstances.
Among other things, it can matter whether the mistake was careless or deliberate and what the insurer would have done if it had been given the correct information.
Depending on the situation, the insurer might have:
Offered the same cover
Charged a different premium
Applied different policy terms
Declined to provide cover altogether
The consequences can therefore vary. A claim could potentially be reduced or declined, while deliberate or reckless misrepresentation can have much more serious consequences.
Check your car insurance details before you need to claim
The easiest time to correct something on your motor insurance policy is before you need to make a claim.
Take a few minutes to check that your details still reflect your current circumstances, particularly if you've recently moved house, changed jobs, altered your mileage, modified your vehicle or started using it differently.
And if you're not sure whether your insurer needs to know about something, ask.
It's much better to check now than discover after an accident, theft or other loss that something wasn't covered in the way you expected.
Looking for car insurance?
At Performance Direct, we arrange cover for a wide range of motorists, including standard, performance, modified and specialist vehicles.
Whether you're arranging a new policy or your circumstances have changed, it's important that the cover you choose accurately reflects your vehicle and how you use it.
Find out more about Performance Direct Car Insurance
Insurance cover, terms, conditions, exclusions and notification requirements vary by insurer and policy. Always check your policy documentation and contact your insurer or broker if you are unsure whether a change needs to be declared.
