Invalidating life insurance
With no claims discounts offering such huge reductions on yearly premiums, most people are reluctant to claim in the event of a minor incident.However, you are required to inform your insurer of an accident even if you don’t wish to make a claim.Bear in mind that the cover is only third party too, so if there’s an accident any damage to your car won’t be covered.If you’re teaching a learner how to drive in your car it’s best to get them added as a named driver or to take out provisional drivers’ insurance separate to your policy.If you’re found to be fronting an insurance policy your policy will be cancelled and any claims will be rejected.Many fronting cases go to court, where you could be fined up to £5,000 and receive six penalty points.Your insurer expects you to take reasonable care of your car — accidents do happen (that’s the point of insurance), but if you are reckless or negligent it’s unlikely the insurer will pay out on your claim.
You’re legally required to disclose all of these facts to your insurer, so don’t be tempted to lie in an attempt to reduce the cost of your cover.
If you’re going to let someone else use your car, make sure they’re fully insured.
To be covered by insurance, the other driver will usually need to be added to your policy as a named driver.
If you add any modifications to your car after taking out your insurance policy, make sure you let your insurer know.
When you take out an insurance policy you will be asked about your use of the car — i.e.
You’re also not permitted to make a profit from driving your car unless you state that in your application — for example as a taxi driver — so don’t accept money for lifts unless the cash is solely to cover petrol costs.