10 Worst Car Insurance Mistakes
October 21, 2018
Insurance companies have significant rules that you need to uphold when it comes to your motor vehicles. However, many drivers are unaware of these until it’s too late. Here are the worst car insurance mistakes to avoid:
- Insurance companies are not fond of drivers under the age of 25 when it comes to insurance premiums. But choosing not to add them as regular drivers to avoid a higher rate can backfire with expensive consequences. Doing this is among the worst car insurance mistakes. Insurance companies can penalise you for withholding information. They could choose not to pay out or revoke your contract with them.
- Sometimes it slips our minds, and we forget to inform our insurance company that we now park a registered vehicle at another address. Avoid this, the second worst of all car insurance mistakes. If someone steals that car, insurance can refuse to pay. That’s because the owner concealed information regarding the vehicle’s location, which may also result in cancelling your policy.
- You are not allowed to cover an insurance premium for someone if the car no longer belongs to you. If you were to submit a claim, some insurance companies might conclude that you are trying to commit fraud to get lower rates, which can result in cancelling your policy.
- If you are not the primary driver, and the vehicle is not at your residence, insurance companies may not approve your insurance coverage. But if successful, the regular driver will need to state who is covering the insurance, but if they fail to do so, insurers may refuse to cover a claim if there is an accident or even cancel your policy.
- You need to inform your insurance company if your vehicle resides somewhere else and if there is another primary driver. Some companies permit adding a “friend” to your policy, but if they don’t, your friend will have to cover the insurance themselves. Failure to do so can result in a claim refusal if there is an accident.
- Remove your name and insurance from a car you have sold to someone else. Otherwise, you will be liable because the vehicle is still in your name. Ensure that the vehicle is registered to the new driver to avoid being responsible for their actions.
Don’t Make These Mistakes
- If you use your vehicle as a delivery vehicle of any kind, change your policy to business or commercial insurance because if you don’t, you will need to pay for the damages if there is to be an accident.
- If someone is deliberately left off your policy and they get behind the wheel, insurers will not pay for any damages they cause in an accident and the owner will be held liable.
- Always make sure to notify your insurance company if you have purchased a new vehicle. Do this before it leaves the dealership. If they are unaware, they can only cover you for the value of your previous car or not at all.
- Never forget to inform your insurance about an additional regular driver. Add them to your policy or avoid having them drive your vehicle in all instances. This way you can prevent a claim headache if there were to be an accident.
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All info was correct at time of publishing