Does reckless and dangerous driving cancel out car insurance?
- Yes, and there are other reasons for claim rejection
- Unlicensed driver
- Non-roadworthy vehicle
- Reckless driving
- Drunk driving
- Someone other than the ‘regular driver’ driving
- Total-loss clause – this applies to vehicles that are complete write-offs, which could lead to rejection of claim, if it is a clause in your policy’s terms and conditions
- Driver fault revealed by telematics data – telematics technology recovers vehicle after tracking stolen vehicles. It is also a monitoring device, to gather data on driver behaviour. This technology can reveal speeding incidences, or reckless driving culminating in an accident. This can result in claim rejection.
- No tracker device not installed – some policies insist on the installation of a car tracker, and should you not, can lead to a claim dismissal.
- Non-compliance with vehicle inspection – some policies insist on a vehicle inspection at the beginning of the cover period, to negate damage that may be pre-existing. Failure to comply may lead to claim refusal.
- Business Use Vehicle – you should disclose business use vehicles to the insurer, as some deem them differently from private use vehicles
- Non-secure night parking – claim rejection may result if a vehicle was not in a lockable garage through the night
- Non-installation of security device – a claim can face rejection if it is a requirement that your car has an installed a gear lock or alarm system, but does not
- During underwriting, material non-disclosure – you should disclose risk assessment material to the insurer during the underwriting stage. Material such as credit record judgements, prior cover applications rejections, insurance cover lapses and your claims record are all vital information when judging risk.
When buying motor insurance, take note of the the following:
- Excesses – look out for policies that include multiple excesses. This means further excesses apply, in addition to the standard excess.
Young Drivers are Reckless, Insurers Have Found
For example, new or young drivers without licences for a certain duration may be liable for more than one excess. If you unfortunately involved in an accident six months in into your cover, or at the hours of 12am and 6am, typically the roads’ most dangerous period, you may incur an extra excess. Also, older drivers at times attract an extra excess.
- Valuation – pay extra attention to insurer valuations, as these affect the valuation point of a claim, as well as forming the basis of how much you pay in premiums. As a wasting asset, a car needs to be valued regularly. Some short-term insurance providers value your car annually, while others charge premiums according to inflation. Make sure you are not over-insured.
Vehicle valuation:
- retail value – price a consumer can buy a car from a dealer,
- trade value – price your car is worth to dealer and
- market value – mid-point between retail value and trade value.
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