A few key factors can make the difference between your insurance paying out in the event of an accident, or claiming that you have voided your policy and leaving you to foot the bill. If you’re keen to avoid this risk, make sure you avoid giving your insurance company any of these five reasons to cancel your policy or not pay out.
1) Not paying
This is pretty clear, but it’s worth reiterating. If you stop paying your monthly insurance bills, the company will most likely make several attempts to get in touch with you, and if that fails they will cut off your service. You don’t want to do this accidentally, so it’s probably worth setting up an automatic recurring payment.
2) Being convicted of dangerous driving
Another obvious one, but still important. If you have an undisclosed history of getting in trouble with the law for dangerous driving, then it’s quite likely you’ll be unable to get insurance easily. Points on your licence can count against you, so it’s best to minimise these if you ever have the chance to swap them for something like attending a road safety class.
3) Not disclosing health issues
Certain medical conditions are considered risk factors for drivers, so you would be expected to reveal the extent of these when you apply. These might increase the premium you have to pay on a regular basis, but the alternative is being caught lying and having your policy cancelled.
4) Having too many past claims
If you have made several claims on your insurance in the past, this raises a red flag for insurers. They will assume you represent a higher risk on the roads than most drivers, and unless they hike up your price significantly they may simply terminate your policy. Your current insurer may not cut ties immediately, but instead let you know they won’t renew it so you have time to go elsewhere. Many people see this as unfair, because claiming on your own insurance will often be for things that aren’t your fault, but it happens.
5) Being caught lying
If you put in fraudulent details when you obtain your insurance and you get found out later, you will most likely lose your policy. It doesn’t necessarily matter if you thought these details were insignificant, such as the approximate number of miles you drive per year. It can still be classed as fraud. Out of date details can also catch you out, so ensure your policy details are kept up to date.