Insurance is there to give us peace of mind, right? So why is it that whenever you make a claim there’s a nailbiting wait to find out if they will actually pay out. Insurance companies don’t like to lose – they work hard to find loopholes in the contract which will stop them paying out. Unfortunately, many people hand it to them on a plate by making simple errors which invalidate the insurance policy.
Driving overseas
Car insurance – it’s something we have to have and a task most of us get over and done with as soon as possible. However, you can often find yourself breaking the law without even knowing it.
One in three of us plan to drive overseas this summer, but many will not have considered how our insurance company will react. As soon as you roll off the train, or disembark from the ferry, you could unwittingly be driving uninsured.
If you plan to drive abroad, make sure your policy covers you. And before you leave, always remember to double check your coverage.
Getting the details wrong
Insurance companies are geeks. They love the tiny details. For example, you might not be certain about the type of door locks you have in your house, but they will be. You’ll be tempted to put down any old description just to complete the form, but if you’re wrong it’s a mistake that could come back to haunt you.
When you take out car insurance you should ensure that you have declared the correct 'registered keeper' of the vehicle. This is the person named on the registration document (logbook) and may not be the person who regularly drives the car. A recent claim by one of our customers was held up, and will potentially be denied, because these details had not been disclosed accurately.
Getting drunk
There are few things we Brits do better than drink. However, insurance companies are taking a much closer look at accidents which involve alcohol – especially if you’re abroad. If they think you’ve been drinking excessively and that this has contributed to your accident, they may refuse your claim.
Big life changes
You’ve hit a major life milestone and you can’t wait to rush out and tell all your friends and family. But there’s someone else who needs to know – your insurer.
For example, let’s imagine you have a life insurance policy and quit your day job to become a lion tamer. Unlikely, I know, but bear with me.
Insurance is all about risk and if you’ve taken on an exciting, but high risk day job, that has an obvious knock on effect to your chances of needing your policy. Higher risks typically involve higher premiums, so if you switch to a high risk job you’ll naturally be reluctant to let your insurer know. However, if you don’t this could count as misrepresentation which will invalidate your insurance policy.
Not knowing what your policy covers
Insurance is dull. Let’s face facts. Nobody likes to spend time thinking about it and so you’ll be tempted to rush through and get it over and done with. Unfortunately, that leads many people to take out a policy without fully understanding what they are covered for. That can be dangerous as they often assume they are covered and only find out they’re not when it comes to claim.
To avoid that – and all these other pitfalls – it pays to do your research. Have a look at our comparison tools for all the different types of insurance policies you might need. They will give you a list of quotes and help you to do your research about exactly what they do and do not cover.
