4 Common mistakes that can invalidate your car insurance

Car insurance should be simple and straightforward. You pay the insurer a premium every month and, if you ever need to claim, you contact them to have your vehicle repaired or replaced.

It’s the smart thing to do and saves you money in the long term, especially in the event of third-party damage or vehicle theft.

• Get an online quote from Dialdirect to start your car insurance quote process. 

However, did you know that you could invalidate your insurance policy regardless of whether you’ve paid your premiums every month?

What does it mean to have invalidated your car insurance?

Dialdirect explains that to repudiate one’s car insurance means that your policy is ruled invalid by your insurer.

Subsequently, any claim you make will not be paid out. “There are several reasons that this may happen,” explains Dialdirect, who goes on to say that, “many policyholders may not be aware of these common mistakes which could invalidate their car insurance policy.”

Dialdirect car insurance notes the following factors:

1. Providing incorrect details

While it may be tempting to bend the truth a little, the car insurer confirms that it’s never advisable to misrepresent the facts as this can sabotage your claim approval.

The guidelines from car insurance companies are there for reason. Some geographical locations, for instance, have higher crime or theft rates, which would influence your risk profile.

So, if you were to park you regularly park your car at your parents’ home while you’re at university, and listed the latter address on your policy, you could end up with a rejected claim if your car gets broken into at your parents’ home.

2. Nondisclosure of alterations or modifications

If you’ve customised your car for aesthetic reasons or to improve performance, you need to be upfront about this with your car insurer.

Giving your car a makeover will mean that it also raises the cost to repair it so your insurer will need to adjust your car insurance premium accordingly.

3. Noting the incorrect person as the regular driver

What is a regular driver? Dialdirect explains that this is the person who uses the car the most and it’s important to list the correct person.

Likewise, if other people drive the car on the regular basis, it’s advisable to let your car insurer know.

Some car insurance policies will only cover repairs if the main policy member was behind the wheel at the time of the vehicle accident, while other policies will provide cover even if you’re not in the car, as long as the correct driver is listed.

4. Insurance fronting

The premium of each car insurance policy is based on risk assessment.

As such, young and inexperienced drivers tend to pay a higher premium which is why some parents may try to lower the cost of their insurance by claiming they are the regular driver of the vehicle.

This is known as insurance fronting, which could lead to the invalidation of your policy as well as insurance fraud charges.

Discover more about insurance for vehicles

Dialdirect is one of South Africa’s leading car insurance companies. The brand offers a range of car insurance options and policies that will suit your vehicle and your budget.

Get an online quote from Dialdirect to start your car insurance quote process.