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7 things that can void your car insurance claim

Last updated on November 25th, 2021
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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Car insurance is definitely not something you want to skimp on. Yet, those monthly instalments could mean very little if you are doing something that could void your insurance claim. It is important to be aware of the various factors that could lead to a claim being rejected.

Un-roadworthy vehicle

A number of issues could lead to your vehicle being deemed un-roadworthy. This could range from your lights not functioning properly, your tyres being worn, your wiper blades being faulty or your brakes being defective. Even a cracked windscreen or oil leak could put your vehicle at risk of being un-roadworthy. The problem is, if you are involved in a collisions and any of these issues arise, it could lead your claim to being rejected.

Driving under the influence

This may seem like a no brainer but even if you are slightly over the legal alcohol limit, or tested positive for illegal substances, and were not at fault during an accident, you are at risk of having your claim rejected.

The driver is not you

If your policy lists you as the sole driver of the vehicle and somebody else is involved in a collision while driving your vehicle, your claim could be wavered. This boils down to a misrepresentation by the policyholder. Premiums may be higher if you list another driver under your policy but if you fail to do this and there is an accident, you could be the one stuck.

Non-disclosure

When taking out a policy, it is imperative that you disclose all information. This includes prior claims, vehicle modifications, driving related convictions or any change of incident that could influence the conditions of your cover or premium.

Vehicle parked in unsecure area

It is common for vehicle owners to have their insurance claims rejected after their cars were stolen after parking it overnight at a location other than what is listed as the overnight parking address in their policy. Pay attention to the specific details outlined by your policy.

Missed premium payment

Skipping your insurance payment is a quick way to void your insurance. It is reminiscent of an episode of The Simpsons when Homer forgets to send an insurance payment on time and has to avoid any claim-worthy incidents. It is best to ensure payments are made timeously.

Using your vehicle for business

When you are taking out your policy, the insurer will ask whether you will use your car for business, or for commuting. If you lie about this and it later emerges that you have been sing the vehicle for such activities, your claim could be wavered.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

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