Car Insurance is not a permanent thing. Even if you buy insurance properly, and sign up with a reputable company, it is still possible to lose your insurance. Invalidating your insurance requires you only to make any number of common mistakes. Many people might even deliberately make one or more of these mistakes, thinking them a legal way to lower their insurance premiums.

Mistake #1 – Mislabelling the Car’s Usage

When you speak to your insurer or broker, you need to confirm to them how you use the car. This essentially means to what extent you use the car. The usual categories that insurers divide car usage into are social, social and commuting, and business use.

Mistake #2 – Misstating the Car’s Home Address

It is cheaper to insure cars that are based in some areas. This is usually due to the lower crime and accident rates in some areas compared to others. If you state that your car is based in one area, when in fact it is based in another, your insurance can be invalidated.

Mistake #3 – Getting Your Job Wrong

You have to be honest with your insurer about what your job is. This is due to the unfortunate fact that some professions are simply more likely to be involved in risks than others. Despite this, some people continue to inaccurately state their profession on insurance documents.

Mistake #4 – Not Reporting Claims

When you buy insurance, the broker will usually ask you what claims or accidents you might have had. This is so that they can determine how much of a risk you are likely to represent. If you don’t accurately report your claims and accident history, you are not reporting the necessary facts to your insurer.

Mistake #5 – Not Reporting Convictions

Equally, your personal history affects your quotation. Failing to properly disclose your history with the law could invalidate your policy – as you now represent a different type of risk. Make sure that you tell the insurers of everything that they genuinely need to know.

Even the best insurance cannot always cover everything you would expect. If you have a write off, your car insurance might not cover everything that you need it to. Insurers usually only pay out what your car was worth at the time of the accident, not what you paid for it. GAP Insurance covers the difference between what your car was worth when you bought it, and the amount your insurers paid out for it.