Common Mistakes That Can Invalidate Your Car Insurance

You already know that car insurance is mandatory in the UAE and many other countries worldwide. If you are driving without car insurance, you are breaking the law. It can result in your vehicle being impounded, black points on the license, fines, and even a jail term. So, it is safe to say that the best option is to opt for car insurance. You might consider it an unnecessary expense, but its true value is known when you end up in a collision.

The purpose of this blog post is not to talk about the merits and demerits of car insurance. Instead, we will let you know about mistakes that can invalidate, i.e. void your car insurance. Pay attention because you might have unknowingly committed this mistake. Remember, ignorance of the law or a mistake is not considered a valid defence in any court of law.

Insurance Fraud

One might think that these things do not happen in developed countries. However, that's not the case. Insurance fraud is quite common. It is not confined to automobile insurance alone; instead, personal, home, business, and other types are no exception.

What is Insurance Fraud?

It is an umbrella term for a wide range of statements and actions. If you lie about your car or driver details when opting for insurance, you are committing insurance fraud. Other than this, if you claim that is contrary to the facts, again, this is considered insurance fraud. For example, you claim that you park the car inside a secure garage. However, you don't have a garage, or you park your car outside. Such actions are considered insurance fraud.

Not Following Scheduled Car Maintenance

If you are not maintaining the vehicle, you are condemning the vehicle to premature repairs and replacements. Other than this, the vehicle’s resale value will significantly go down. Most importantly, you will void your insurance. After all, one should not expect them to pay for their faults and failure to maintain the vehicle correctly. Therefore, always send the vehicle for periodic car maintenance.

Car Modifications

Many people like to opt for car modifications, and there's absolutely nothing wrong with it as it the owner's personal choice. In fact, modifications enhance the performance and physical appearance of your vehicle. While opting for car insurance, the insurer inspects the vehicle. The premium is based on the inspection and other factors. When you opt for car modifications, the insurance contract becomes void. But that does not mean that you shouldn’t opt for car modifications. Instead, let your car insurer know before and after getting the modification. It will keep your insurance valid.

Using Your Car for Purposes Other Than Specified

When taking out insurance, the insurer will ask you about your driving habits, job, and other details. If you say that you will limit the car to personal use alone, they expect you to abide by it. However, if you use the vehicle for commercial purposes such as taxi, Uber, Careem, food delivery, or any other similar purpose, the insurance becomes void. Therefore, limit the car to the purpose that you mentioned when buying car insurance.

Loaning the Car to a Friend or Family

If a person who is not listed as a driver on the insurance policy drives the car, the insurance becomes invalid. Keep in mind that if the non-listed driver ends up in a collision, the insurer will not pay for any damages. In fact, the insurer might cancel the policy altogether.

Deliberately Ignoring Traffic Laws

A once in a blue moon traffic fine and other violations don’t affect your insurance premium. But if you continue to flout traffic lows, the insurer will have no choice but to raise your rate. In case the violations are too much, the insurer will consider you as a risk and opt to cancel your policy altogether. Therefore, always respect the traffic laws.

Wrap Up

This concludes our article. If you have any questions, feel free to send them our way. If you are looking for car insurance in UAE, know that we offer the best car insurance rates throughout UAE. All you need to do is fill in the details and sit back for a free quote. Here’s the link to our car insurance page.