Car insurance is not only a legal obligation, but it is also a great strategy to protect yourself financially in the event of a vehicle accident. If you opt for a Comprehensive Car Insurance Policy, you will be covered by both the legally required Third-Party Car Insurance and an Own Damage Coverage.
To be qualified for an automobile insurance claim, you must meet certain terms and conditions. As a result, you should be aware of the following reasons why your car insurance may be invalid at the time of a claim.
What is a car insurance policy that isn’t valid?
The term “invalid car insurance” or “invalid car insurance policy” refers to the condition of a vehicle insurance policy. In most cases, invalid insurance arises when a vehicle insurance coverage is obtained from an unlicensed seller or when the policy has expired.
The other situation is when a claim is being settled, and the insurer can reject the claim by declaring that “vehicle insurance is invalid.” The following section discusses situations in which your car insurance policy may be rendered void during a claim settlement.
If you don’t follow the policy’s terms and conditions and file a claim, the insurer (for example, MGS Insurance Services) may reject it as invalid.
Reasons why your car insurance policy can be void
When a vehicle insurance claim is denied, no one enjoys it. After all, you acquire a broad insurance coverage to get financial help when you need it, right?
Yes, if you follow the laws and regulations, you will obtain financial assistance. If this is not the case, the claim may be denied because the car insurance would be invalid in that case.
Here are some examples of such events to consider.
1. Vehicle alterations
Many people like to express themselves by the clothes they wear, the way they decorate their homes, or the way they customize their vehicles. These are examples of ways to personalize items. In the case of a vehicle, this could entail customizing the external graphics, adding devices to the interior, and so on. Modifications can also be made to improve the performance of the vehicle.
Typically, such improvements raise the car’s worth. And the higher the value, the larger the premium that must be paid.
As a result, it’s best to notify the insurance if you’ve made any changes or improvements to the insured vehicle. They might want to evaluate it to see if the changes necessitate a premium adjustment.
However, if you don’t notify the insurer about the changes ahead of time and then file a claim for damage to the upgrades, the insurer may deny the claim. This is due to the fact that you did not notify the insurance about the enhancements sooner.
2. Drunk driving
It is risky to operate a car while under the influence of alcohol or other strong intoxicants. It’s a dangerous situation not only for you and your passengers, but also for other motorists and pedestrians. Such careless behavior has the potential to take lives!
If it is discovered that you were driving the vehicle while under the influence of alcohol at the time of the claim, your automobile insurance coverage will be void. Because damages to the insured car caused by drinking and driving are an exclusion to the insurance, the insurer will not be able to compensate for your losses.
3. Traffic rules
Following traffic rules is an important aspect of driving an automobile. There would be mayhem if there were no traffic rules! As a result, you must adhere to traffic restrictions such as driving with a valid driver’s license (DL), not driving in a No Entry zone, and obeying traffic signals, among others.
You can get into financial difficulties if you break these traffic regulations because you will be subject to monetary penalties. It can also result in the denial of an automobile insurance claim. If it is discovered that you broke traffic laws while causing automobile damage or being involved in a car accident, your claim may be denied.
4. Car racing
Automobile racing, no matter how thrilling it may be to drive your car at full speed, will not provide any benefits in terms of car insurance. If a damage claim arises as a result of your participation in motor racing, your car insurance coverage will be void.
5. Inappropriate Claim
Own Damages are not covered by a third-party car insurance policy. This implies that if you simply have liability insurance, your policy will not cover damages to your car caused by an accident.
As a result, if you want to file a claim for damage to your vehicle under a Third-party Liability Policy, your car insurance coverage will be void.
6. Missing documentation
You may be required to file a (Report Incident) with the police in certain accident situations. This document is critical to the successful settlement of a lawsuit.
If you fail to produce the required documentation, your claim may be denied.
7. Application of the claim in a timely manner
Keep the time between the event that caused the car damage and the filing of the claim as short as feasible. It’s advisable to notify the firm the day of the event or the next day. For example, if the time difference is a month, there’s a good probability the claim will be denied.
8. Fake claim
You are not in the insurance business to make money. It is a method of ensuring prompt financial assistance in the event of car damage or theft, subject to the policy’s terms and restrictions.
As a result, any instances of making false statements in order to benefit will be dismissed. Furthermore, such fraudulent conduct may have legal ramifications.
9. Forgetting to pay your premium is a big no-no.
This is one of the simplest and most ridiculous ways to cancel your vehicle insurance. To put it another way, if you’re in an accident and seek assistance from your provider, they’ll want to see that you’re upholding your end of the contract.
Setting up a direct debit through online banking is one way to ensure you never miss a payment.
It’s critical to read your auto insurance policy’s terms and conditions on a regular basis to ensure that you haven’t mistakenly invalidated the policy. Keep your insurance provider informed of any changes in your circumstances, whether or not you believe they are relevant, as even seemingly unrelated life events can have an impact on your rate.
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Read also: Avoid Buying Fake Car Insurance