What voids car insurance? 11 things to consider

Like many things in life, car insurance is a two-way street. Your insurer agrees to insure your vehicle, but in return you’ll need to make sure your car and the person driving it meet certain conditions. Here are some things you’ll want to steer clear of if you want to keep your cover in place.

1. Not following your licence’s rules

Driving without a licence is not only against the law – it will also void your car insurance. The same applies if you are on a restricted licence and you don’t follow the rules – even if you’re not aware of them. For example, states and territories have very different rules around what a P Plater can do, as well as different levels of their ‘Provisional’ licence.

There are rules around when P Plate drivers can have other people in the car, and even curfews where certain licence holders can’t drive at all. If that P Plate driver was to have an accident (even if it’s not their fault) at the time of the curfew, that driver will probably not be successful when it comes to claiming repair costs from their insurer.

It doesn’t matter if you are just going interstate for a visit, you have to know and follow the licence rules where you are driving. For example, a P Plater from Queensland who visits New South Wales is expected to follow BOTH Qld and NSW rules.

2. Worn tyres (or anything else that makes your car unroadworthy)

Driving a car with worn-out tyres is not only a safety risk, it’s also risky from an insurance point of view. New tyres typically come with a tread depth of between 8 and 9mm and this can wear down over time. In Australia, the legal minimum tyre tread depth is 1.6mm (but anything less than 3mm is getting dangerous).

If your tread is anything below 1.6mm, your car is considered unroadworthy and your insurance is likely to be voided. When you take on an insurance policy, part of the deal is that you agree to keep your car up to scratch, so that it would pass a roadworthy test. This extends to things like making sure your indicators and brake lights are working properly, that the body is free from rust, and that it’s mechanically sound.

3. Driving under the influence

Although this may seem quite straightforward, as it’s against the law to drive under the influence, it’s worth noting that drugs can include certain medications such as sleeping pills, painkillers, cold and flu tablets and other medications that can impair your ability to drive. Insurers also won’t cover you if your blood alcohol level (BAC) is over the legal limit, which will differ depending on the type of licence you have. Healthdirect Australia has extra tips on medicines and driving, including what to do to avoid driving under the influence (DUI).

4. Ridesharing without telling your insurer

If you use your car for a ridesharing service such as Uber or DiDi without letting your insurer know, this can also void your insurance. Many insurers won’t cover your car if it is damaged while generating income. As well as ridesharing, this may extend to using your car for food deliveries such as Uber Eats or Deliveroo. If you intend to pick up a sharing economy gig, make sure you let your insurer know. Some insurers can extend your policy to cover this.

5. Using the wrong fuel

Filling up your car with the wrong fuel can be an easy mistake to make. It can also be a potentially expensive one. If you’ve put petrol in a diesel car or vice versa, your insurer is unlikely to cover you if your car is damaged as a result of this. Putting petrol in a diesel car can cause serious damage to the fuel injection system and engine. If you put diesel in a petrol engine, your car usually won’t run as well but the results may be less serious.

6. Overloading your car

Another way you could void your insurance is by overloading your car. This is when you are carrying more people or a larger load than your car is designed to carry. It could happen if you’re moving homes, for example, and have filled your car to the brim with moving boxes. If your car tows an overloaded trailer, this is also likely to void your cover. You can only carry as many people in a car as you have working seat belts.

7. Modifying your car without telling your insurer

Not letting your insurer know about car modifications can also potentially void your insurance. This could include things like changing your car’s suspension, adding bull-bars or just doing a custom paint job. It’s worth checking your policy document to see what car modifications your insurer does and doesn’t cover.

8. Racing

If you use your car in a drag race or run a ‘time trial’, and you don’t have specialist insurance and were to have an accident, you probably won’t be covered. Many policies say that if a car is used to race, or for ‘sport’ in any way, then the car would not be insured. This may extend to taking some cars offroad (without specialist insurance).

9. Not locking up

If you leave your car unlocked, it might not be covered, depending on the rules of the insurer and where your car is parked. If you leave the car unlocked and the keys in the ignition and your car is stolen – it’s highly likely that your policy would be worthless. Part of the deal with insurance is taking necessary measures to keep it from being an easy target for thieves.

10. Not moving your car to safety if the weather turns

Some insurance policies include a clause that states that if you don’t move your car and you know a flood is coming (or other bad weather, such as hail), then you might not be covered. The caveat here is that you are only expected to move the car if it’s safe to do so. So, if you know that there’s a big rain storm coming, and you are parked in a low area that’s known to flood at the drop of a hat, then it’s best to move your car before the storm begins.

11. Missing premium payments

If you miss a premium payment, such as forgetting to update your credit or debit card details with the insurer or not having enough funds in a direct debit account, this could put your cover in danger. Forgetting to pay your insurance premiums altogether is another easy mistake to make, especially if you have an ‘auto-renewal’ feature set up and have changed bank account details. If you don’t pay your premiums on time, your policy could be cancelled.

The above list doesn’t cover everything, so to make sure you have a good understanding of what voids car insurance it’s important to check your car insurance product disclosure statement (PDS) for a full list of exclusions.

Cover image source: Monkey Business Images/Shutterstock.com