Auto insurance: warning against drivers invalidating their coverage – expert opinion
Due to the many blockades in 2020 and 2021, fewer drivers were on the roads, leaving car insurance rates lower. With driving habits now returning to pre-pandemic levels and with more drivers on the roads, drivers are being warned to watch out for small mistakes that could affect their insurance.
Some policies also specifically exclude carsharing coverage, whether drivers take advantage of it or not.
For those whose policies allow ski lift sharing, it may be void if they profit from the lift service.
Many would argue that motorists can only earn enough to cover gasoline and driving costs.
Earning money donating elevators can identify the driver as a “taxi hire service”, thus creating a policy that does not cover this void.
CarParts4Less commented on the potential for insurance invalidated by certain journeys.
They said, “There are three types of car use covered by insurance; social only, social and commuting, and business.
“Social insurance only covers driving for social or recreational purposes; coming and going with friends, going to the supermarket, etc.
“Round trips to and from work, or even to and from the train station, are not covered by this policy, so it is necessary to switch to a social network and commute, even if you only commute a few times per month.
“Insurance companies can dispute or deny claims made while commuting if the policy is for social use only, even if it is claimed to be ad hoc.”
If you use your car for business purposes outside of commuting, for example to travel to meetings or to transport equipment, you will need to purchase commercial coverage.
Drivers are also advised to avoid “fronting”.
Insurance for young drivers is often more expensive than groups seen as less risky, with some motorists looking to bypass the higher premiums.
They do this by having a low risk driver, such as a parent or relative, named as the primary policy holder, and adding the real motorist as the named driver.
If drivers are caught red-handed, their policy could be immediately canceled and any claims denied.
These cases often go to court because they are considered insurance fraud.
Potential results include fines of up to £ 5,000 and six points on the offender’s license.