An insurance company is a business. You pay them to look out for you in times of troubles and they look for capitalizing on your mistakes. It’s not rude or unethical, it’s how they survive a business.
The car insurance policy is a year-long financial commitment. But, even after paying all the premiums on time, you can get a call, saying that the policy has been invalidated.
It is because even the most responsible drivers make mistakes. Every. Single. Day. But, an innocent slip-up could give you the biggest nightmare – cancellation of your auto insurance policy!
How to avoid the financial doom?
First off, you should compare all available car insurance companies and their rates. Choose a company with the best reviews and best rates. You can use CompareMyRates, a site where you can compare car insurance rates and choose the best one for you. And the second thing you can do is avoiding some silly mistakes, of course! Don’t do these eight things as they are the quickest way to push the premium up or void the car insurance:
Driving Under the Influence
Well, it’s an obvious reason, isn’t it? No insurance company offers coverage for driving under the influence of alcohol or other drugs. The blood alcohol concentration (BAC) should be 0.05% or less for a full license holder. So, don’t dare to drive after you indulge yourself with a few tequila shots. The BAC has to be absolutely 0% for the L or P plater license holders.
Non-Disclosure of Upgrades
You are legally bound to keep your insurer in the loop when deciding to upgrade the car. Whether it’s a simple paint job or install some aftermarket products to increase the performance, the insurance company can terminate the policy on the ground that the upgrade affects the safety, performance, or value of the vehicle. The safe practice is to stay away from any unauthorized changes.
Committing Insurance Fraud
Do you want to know some of the common reasons for insurance policies getting canceled? Fraudulent activities. You are in danger have you been lied about the car’s specifications or driver(s) at the time of application or falsified a claim. Voluntary violation of any terms and conditions will also bring the same result.
Using the Car for Commercial Purposes
Insuring the car for personal uses and then using it for monetary gain is deceitful and the insurer has every right to take action against any such activity. If you use the for a rideshare service like Uber and Lyft or get into an accident while employing the car for such a business purpose, you run the risk of losing the auto insurance policy.
Allowing Unlisted Drivers to Drive
Like all the good mates, we like to help our friends in times of need. It’s fine unless such an occasional charity ends up in an accident. The insurance company won’t cover for any accident done by a driver who is not nominated under your policy.
Remember that an accident caused by an unlisted driver can cost you almost $1,000 and the amount will be double has the driver been less than 25 years old.
Leaving the Car Unlocked
Seems no-brainer, right? Who leaves their car unlocked? Well, you will be surprised to know that a great number of people have the habit of leaving the keys in the ignition. Haven’t you ever done the same in the service station when paying for petrol? People think that it’s just a matter of a couple of seconds but a thief needs only those few seconds to steal a car. The insurer can refuse to pay for the damages or cancel the policy if your car is stolen and vandalized after being left unlocked.
Carrying Extra Load
Every car has a limit when it comes to carrying weight. You will need to make sure that the total weight of the passengers and cargo is under that limit. Also, if you use the car exclusively for towing the weight should be under the legal limit set by the manufacturer. You run the risk of invalidating the insurance by carrying passengers or loads more than the car can handle.
Not Changing the Worn out Tires
The exterior components that take most of the beating while driving are the tires. They will wear out over time and at a quicker rate given on many factors like rough driving, sudden braking, bad road conditions, and more. The problem is bad tires affect many internal parts such as the entire braking system, which ultimately leads to expensive repairs. Your insurer won’t be happy if you keep driving with exhausted tires that can cause the undone of other components.
Negligence with Maintenance
No matter how state-of-the-art your car is or how rarely you drive it, every car needs regular upkeep and servicing. Regular checkups make sure that it is safe to take the car out on the road and save you from the surprise of unexpected repairs. Your insurance company can refuse to pay if a costly fix proves to be the outcome of your negligence.
Not Keeping up with the Premiums
A silly mistake, right? But, it can cost you the car insurance! The insurer is unlikely to compensate for any damage or accident if you are behind your installments. It’s important to hold your end of the bargain and you should be careful about making the payments on time.