‘Simple’ Road Mistake Voiding Car Insurance: What Australians Need to Know
Car insurance is designed to protect drivers, but many Australians may be unaware of how easily their coverage can be invalidated by common errors. A minor slip-up could lead to an instant claim denial, leaving motorists with substantial repair costs and no financial safety net.
Insurance specialist Adrian Bennett revealed common pitfalls that could cost drivers, speaking to Yahoo News about the issue. He warned that drivers frequently make a range of mistakes without realizing the consequences.
“Many people don’t realise that their car insurance can be voided by simple actions they might not think twice about,” he stated.
Road experts are warning of the simple mistakes that can quickly void car insurance. Source: TFNSW/Getty
“One of the most common is vehicle modifications — even if the car remains roadworthy, changes like engine upgrades, altered exhausts and suspension can still impact coverage if not disclosed to the insurer.”
Bennett, general manager at iSelect, explained that failing to pay car insurance premiums, though seemingly obvious, can quickly lead to a loss of coverage.
“Missing a payment can lead to a lapse in coverage, meaning you won’t be protected if you’re involved in an accident and need to make a claim for damages to your vehicle,” he said.
“Even a small oversight, like forgetting to update payment details after switching bank accounts, can have serious consequences.”
Driving without a valid license or disregarding license restrictions, such as P-plate regulations or state-specific rules, can also instantly void car insurance. Bennett said that insurers expect drivers to adhere to licensing requirements, and any violation – such as driving outside permitted hours, carrying too many passengers, or using the incorrect vehicle class – can result in rejected claims.
Reckless driving, including speeding or dangerous maneuvers, can void a policy. Furthermore, operating a vehicle that does not meet roadworthy standards can lead to a denied claim.
“Insurers require that vehicles be in good mechanical condition, which includes having functional blinkers, brake lights, and tyres with sufficient tread. If your car is deemed unsafe or unfit for the road, a claim resulting from an accident may be denied,” Bennett warned.
Overloading a car beyond its recommended capacity and even failing to lock it – particularly when unattended – can result in voided insurance if the vehicle is stolen or damaged.
Bennett advised drivers to prioritize safety and stay informed about roadworthiness and permitted vehicle use.
“If you’re driving safely and follow road rules, you’re unlikely to get into a situation that voids your car insurance,” he added. “Likewise, understanding your vehicle’s limits, just in case you hook up your friend’s caravan that your car can’t handle, or any requirements that will help prevent unintentional violations that could void your coverage.”
