Car insurance is what lots of people would generously describe as a necessary evil. Let’s be honest, nobody particularly wants to pay it, but since it’s a legal prerequisite for all drivers, it’s something that we all have to stay on top of. Unfortunately though, each year countless people in the UK have unpleasant surprises with their car insurance – because it turns out that it can be easier to nullify it than you might think. So if you’re planning on buying a car from one of our online car auctions here at RAW2K, here are a couple of the most common pitfalls you need to know about!
Fronting
One of the most common ways drivers inadvertently invalidate their car insurance is through a practice known as "fronting." You may have even seen our recent post on fronting – but in case you haven’t, here’s a quick rundown.
Essentially, fronting involves listing someone other than the main driver as the policyholder, typically to reduce insurance premiums, often with a younger or less experienced driver being falsely named as the primary driver when, in fact, they are not. (You can see why so many parents end up doing it for their children, for example.) While it may seem like a harmless cost-saving tactic, fronting is considered insurance fraud. Insurance companies may investigate suspected cases of fronting, leading to policy cancellations and potentially even legal consequences.
Using your car for business
Another pitfall to avoid is using your personal vehicle for business purposes without the appropriate insurance coverage. This is one that not a lot of people know about, and so can catch a lot of drivers off-guard.
Basically, if you use your car for business-related activities such as making deliveries, transporting goods, or providing paid rides like a taxi service, that all potentially counts as ‘business use’. Under the principle of Material Fact Disclosure, you’re obligated to tell your insurer from the outset if you’re planning to use your car for business activities, because they generally carry a higher level of risk, which is relevant for calculating how much to charge you for insurance premiums.
Standard personal car insurance is often unlikely to provide adequate coverage – and without the proper commercial insurance policy, you risk invalidating your insurance.
Modifying your car
Making any kind of modification to your car takes a lot of time and planning, so it’s a little harder to do accidentally. But still, not everyone who enjoys modifying their car always realises that it can often invalidate their car insurance.
It’s most common with modifications that significantly alter the vehicle's original specifications, such as engine upgrades, suspension modifications, or changes to the bodywork, may affect the vehicle's safety and increase the risk of accidents. The best thing to do to avoid this is ask your insurer in advance if you plan to make any vehicle modifications – but be warned, insurers are generally very wary about any kind of car mod, so you might have bit of a job of convincing them!
Changing your details
Ah yes, the dreaded admin. Life changes such as moving to a new address or changing jobs tend to be fairly big ones, so it can be easy to miss the small details – like updating your car insurer on the new changes. The reason that’s important is because your premium rates and coverage options are determined based on various factors, including your location, occupation, and driving history. That means providing inaccurate or outdated information to your insurer could result in denied claims or policy cancellations.
Thankfully, if you forget to do it there’s no need to panic – most insurers are fairly understanding as long as you get in touch first. Even if they end up contacting you in the first instance, you should still be fine as long as you act on their advice promptly. Overall though, it’s best to try and avoid making the error in the first place!
Failing to keep on top of repairs
Almost all car insurance policies will specify that the car has to be kept in a roadworthy condition for the policy to apply. That means if you’re, say, sitting on a bucket and steering with pliers, as one motorist was memorably found to be doing back in 2018, it’s safe to assume that your car insurance policy will be null and void.
Of course, it doesn’t have to get that bad – some motorists have found their car insurance void after neglecting necessary repairs, such as replacing worn-out tyres, fixing faulty brakes, or addressing mechanical issues. Insurance companies quite fairly expect drivers to maintain their vehicles in roadworthy condition, and failure to do so may result in denied claims if an accident occurs due to neglected maintenance.
And of course, if you ever need any spare parts to repair your car – or even if you’re looking at replacing it entirely – you’re in exactly the right place. Here at RAW2K, we take pride in providing you with a huge range of salvage cars to choose from in our online car auctions, including not just models from the likes of Ford and Volkswagen, as well as a range of other world-famous brands like Mercedes, Honda, and Peugeot. Our auctions are refreshed on a daily and weekly basis, so there are always bargains to be found. Why not take a look around, and see what you can find?
