Your auto insurance company relies on you to provide accurate and up-to-date personal information so that it can determine what your premiums should be. Withholding information or providing false information can invalidate your policy, leaving you responsible for all of the damages if an accident should occur. If you want your coverage to remain intact, it’s extremely important that you always be as honest and upfront as possible with your insurance provider. Report any changes in your information as soon as the changes occur.
The following are some of the circumstances that can invalidate your car insurance policy.
Letting Others Drive Your Car
One of the biggest mistakes you can make is expecting your car insurance policy to cover others if you let them drive your car. While some insurance companies may allow another person to drive your car if you are riding along, many will not. It is probably one of the quickest ways to invalidate your policy and leave you holding the bag for all of the financial payouts. Before you let someone else get behind the wheel of your car, ask your insurance agent if they will be covered.
Not Disclosing a Change of Employment
Another reason for invalidating your policy would be a change of employment. It’s important for your insurance agency to know your commute time and how your car is used in relation to your job. Do you drive to and from work only or are you required to drive your car as part of your job? This information may impact how your premiums are calculated. Talking with your insurance agent will help you figure it out.
Inaccurately reporting your mileage from year to year may invalidate your insurance. If you drive more miles than you expected, be honest about it. With today’s advanced technology, insurance agents can monitor your driving habits and track your mileage through the use of a small transponder that can be attached to your car. It connects via Bluetooth to your car’s computer and sends information back to them at regular intervals. Going over your estimated number of miles each year may affect your premiums slightly, but it won’t be a dramatic change.
Not Disclosing Upgrades to Your Vehicle
Not disclosing upgrades or modifications you have made to your vehicle may be a reason for your insurance company to cancel or invalidate your policy. In some cases, upgrades to the engine may increase your car’s performance. Even though you may be able to maintain control of your vehicle, not informing your insurance company about the modifications may render your auto insurance null and void. As soon as any upgrades or modifications are made, make sure to call your insurance agent and let them know.
Using the Wrong Address
Shifting to a new location can be stressful. In all of the hustle and bustle, it can be easy to forget to give your insurance agent your new address. The same goes for updating your address on your driver’s license. In most situations, insurance companies want your address to match on both your insurance policy as well as your driver’s license. As soon as you get settled in, your first priority should be to visit the DMV (Department of Motor Vehicles) and contact your insurance agency to update your address and other personal information.
If you have concerns about making sure your auto insurance is valid, call and talk to the reputable agents at Sausman Insurance Agency. We can provide you with the information you need and give you a full checklist of circumstances that may invalidate your auto insurance coverage. Take a few minutes to review your policy and make sure that all of your information is correct. It will protect you in the long run.