Three Things That Can Void Your Auto Insurance And Leave You Uncovered

20 April 2015

Robin Wells

If you have auto coverage for your car, perhaps you think that you'll be covered no matter what. Below are three things that can void your coverage and require you to pay for any damages out of pocket.

Untold Modifications

While you have every right to make modifications to your vehicle, don't expect your auto insurer to be enthusiastic. So, what if you just don't tell your insurer?

Insurance companies aren't in the business of covering people who lie to them—failure to disclose any modifications done to your car can result in a denied claim. This is known in the insurance world as material misrepresentation. If you'd informed your insurance company of the mods you made to your car, they may have immediately voided your coverage or raised your premium.

Before making any modifications, it's best to speak with an insurance agent to know whether you'd still be covered, and if not, how much it would cost for them to continue to cover you.

Safety Maintenance

While it's important to maintain your car for safety reasons, it can also be important in terms of insurance coverage. Depending on the terms and conditions of your car insurance policy, you may or may not be covered if an accident is caused due to failure to maintain your vehicle.

Certain things that can make you responsible for an accident, and may void your coverage, include bald tires, broken headlights, and  poorly functioning brakes. Don't risk injuries or damage, to you or another—regular car maintenance is an important part of keeping up your end of insurance coverage.

Reckless Driving

If you think reckless driving only involves the use of drugs or alcohol, think again. Reckless driving is any driving that can endanger the lives of yourself or others. This can include speeding, illegal passing, and too many passengers in the vehicle.

While your insurance company may be required to pay for damages, don't expect them to keep you as a client. Insurance companies have every right to drop persons who void their coverage by performing illegal acts. Even if they keep you on, your rates can only be expected to shoot up.

Don't be caught without car insurance. Read through your coverage's terms and conditions to learn more about your coverage and what you can do to keep it current. Failure to inform your insurance company of modifications, failure to maintain your vehicle's safety, and reckless driving can all play a role in your coverage status and premium rates. If you have any questions, speak with an agent.

To learn more, contact a company like Holt Insurance Services with any questions or concerns you have.

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