Archive

December 2017 (1)

February 2017 (1)

November 2015 (1)

July 2015 (1)

June 2015 (1)

April 2015 (1)

February 2015 (1)

October 2014 (1)

September 2014 (2)

August 2014 (1)

June 2014 (2)

April 2014 (1)

March 2014 (1)

February 2014 (1)

December 2013 (4)

August 2013 (4)

May 2013 (2)

April 2013 (3)

March 2013 (3)

February 2013 (2)

January 2013 (1)

December 2012 (4)

November 2012 (1)

October 2012 (2)

September 2012 (2)

August 2012 (1)

July 2012 (1)

June 2012 (1)

May 2012 (4)

April 2012 (3)

March 2012 (3)

February 2012 (4)

January 2012 (3)

December 2011 (2)

November 2011 (4)

October 2011 (2)

September 2011 (4)

August 2011 (4)

July 2011 (3)

June 2011 (7)

May 2011 (8)

April 2011 (4)

March 2011 (6)

February 2011 (7)

September 2010 (2)

July 2010 (1)

 

 

Am I covered?

Many people apply for insurance, briefly scan the terms and conditions, and assume they're entitled to drive their car, their neighbour's car or even their wife's car.

In many instances this isn't the case and you can quickly end up in a situation where your insurance is invalidated and you're facing a hefty bill, penalty or worse. So what can invalidate your insurance?

Misrepresentation

This is the most common way of invalidating an insurance policy. It is when you inform the insurers of something that isn't true, be it that you park on the street and not in a garage as claimed, or giving incorrect details about your car.

Switching your job can also cause issues, as various jobs have different risks and consequently more expensive policies. You can also invalidate a policy if you don't report an accident that could result in someone making a claim - even if you've settled it yourself.

Fronting

As insurance is so high for young drivers 'fronting' is becoming increasingly common. This is where the parent insures their child's car in their own name and adds the child as a named driver. This process is fraudulent as the insurers have been misled and the policy will not have been priced according to the risk.

If you are caught then the insurer can cancel the policy or charge the extra premium as a lump sum. They can also refuse to pay out for any accidents that have occurred, which can lead to the younger driver being classed as uninsured and receiving a ban and a fine.

 

Exceeding your mileage limitations?

In the majority of cases it's not an issue if you exceed your mileage limitation - a simple phone call usually sorts it out. If you are involved in an accident though, and haven't declared the additional mileage, some insurers impose and increased excess whilst others could deny the claim

Modifying your car

Insurers charge higher premiums for modified cars, so not informing them of any changes to your car can be tempting, after all what's the worst that could happen?

If you don't inform them it can make a claim much more difficult and sometimes even void your policy. Even if you only do something minor like changing badges, insurers potentially have reason to invalidate your policy as the risk has changed.

Leaving your car unlocked

Almost all policies include a clause that will exclude cover if the keys are left in the vehicle, or if it is left unlocked and unattended. You may think that it's rare to leave your car unlocked or with the keys in it - but have you ever left it outside running to defrost during winter?

Driving another car with 'D.O.C'

Sometimes your policy will entitle you to drive a car belonging to someone else (usually excluding your spouse) - but with third party cover only. Your own policy will not cover any damage to the car, although the owner's insurance may cover it if the car is stolen or requires repair.

Sometimes the policies state that other cars can only be driven in an emergency and you must have the owner's permission to use the car. You cannot use it to drive cars that are on a hire purchase agreement.

Most policies do not require the third party car to have its own insurance but it is worth checking - as a policy that allows you to drive otherwise uninsured cars is more useful than one that allows you to drive only currently insured cars.

 

Richard Anthony Oakes, Sharon Linda Oakes & Ashley Burton trading as Oakes Insurance Consultants are
authorised and regulated by the Financial Services Authority. Number 307170

Registered office: Oakes House, Derby Road, Long Eaton, Nottingham NG10 1PD