The Most Common Mistakes That Will Invalidate Your Car Insurance

Car insurance is a necessary expense that can help you overcome many delicate situations. Besides that, car insurance is required by law in order to legally drive on the US roads. Although you might have an unpleasant feeling when paying for the insurance, this action will also bring you peace of mind knowing that you and your vehicle are protected in case of a car incident. Visit our website and compare free car insurance quotes.

In some cases, your insurance policy will be terminated by the insurance company. The most common reasons that can lead to the cancelation of your policy are the following:

• Insurance fraud. US insurance providers lose billions of dollars each year due to insurance fraud. This loss is compensated by charging higher premiums to everyone, not just to those who have committed the frauds. If you are caught committing insurance fraud, then your insurance policy will be immediately terminated. But that’s not all. Depending on the severity of the insurance fraud and where it took place, you can expect to receive additional penalties like a hefty fine, probation, and even as much as 10 years in jail. Also, you will have to pay higher premiums in the future.
• Driving under the influence. If you are caught driving under the influence of alcohol or drugs, then your insurance policy will be immediately terminated. Besides that, you will have to pay a hefty fine and you can go to jail if you are convicted. On top of that, you will be required to carry an SR-22 form for at least three years and you will have to pay sky-high insurance premiums.
• Failing to report modifications done to your car. Some car owners modify their vehicles in such ways that can make them more susceptible to theft., while others will improve their vehicle’s performance. Insurers consider that these modifications will increase the risk. Failing to disclose these modifications to the insurer can lead to the policy cancelation.
• Using your personal car for business. There are many ridesharing services available in the US. If you plan on using your car for ridesharing, then you will need commercial car insurance or ridesharing insurance (this type of coverage is limited to just a few states). If you are having an accident while transporting a passenger without having a least one of these types of coverage, then your insurance provider will deny your claims and will also cancel your policy,
• Failing to pay your insurance premiums. This one is obvious. If you are not paying for your insurance, then you don’t have insurance. However, if you have a good reputation and you only missed one payment, then your insurer will probably forgive you and allow you to keep your coverage as soon as you pay your premiums.
• Driving with your pet. You probably can’t live without your furry best friend and you bring it along every time you can. You get a smile on your face on every occasion you notice that your dog is enjoying the feel of the wind on its face. However, the insurance providers will consider bringing your pet while driving as a potential risk factor. While driving with pets, you should ensure they are properly secured in their places. If you are involved in an accident with an unsecured pet in your car, then your insurer will deny your claim and void your policy.

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