Your car insurance is an important document and you should bring it with you every time you get in the car. You need to follow some rules and regulations on how to buy and maintain car insurance. There may be many factors that may force an insurance company to invalidate your auto insurance policy. Here are some of the most common:
- You did not update your insurance policy on time.
When you Buy car insurance, And its validity period is 1 to 3 years, depending on the type of policy. Once that time has passed, you must renew it, otherwise the policy will lapse and you cannot make any claims against it.
- You did not provide correct information when you purchased the policy.
If the insurance company finds any discrepancies between the materials and information you provided when purchasing the policy and the claim, they will reject your claim and invalidate your policy. This is a fraud prevention measure.
- You did not declare that your car was modified when you purchased the insurance policy or changed it.
The most common situation is the modification of CNG kits in gasoline vehicles. When you install the CNG kit in your car, you need to notify the RTO and your insurance company and obtain a new PUC certificate.
If you fail to notify the insurance company of these changes and endorse them in your car insurance policy, the changes will become invalid.
- You use your personal vehicle for commercial purposes.
When you buy a car with a white license plate, you register it for personal use, and the resulting car insurance also caters to this purpose. If you drive the vehicle for any commercial purpose, your insurance policy will become invalid.
Commercial vehicles must comply with stricter regulations and rules in many respects. Their policy prices are also different, so a private car policy is not suitable for commercial use-it will only invalidate the car insurance.
- You made a false claim under the insurance policy.
When you buy car insurance, you will look for a way to cover any type of accident risk. However, due to various reasons, false claims often enter the auto insurance company. These companies try to ensure that everyone stays safe, but anyone who makes a false statement will undermine this collective effort and, therefore, is not eligible for the protection they provide.
- Your car inspection did not go as planned.
If you sign a car insurance policy after the expiry date, you need to have an authorized surveyor of the insurance company inspect your car. If they find any problems with the car, or do not meet any of the set parameters during the inspection, your insurance policy may be invalidated.
- You failed to follow the claim procedures set by the insurance company.
In addition to the procedures, they will also notify you of the documents required to file a claim when you purchase a car insurance policy or update the insurance policy. You must follow their method in letter and spirit, or your car insurance policy may become invalid.
- You are fleeing or escaping from the scene of the accident.
In the event of an accident, you must abide by the law and inform your insurance company of the exact nature of the incident. Sometimes people panic and think they can get away with it. If you abscond, your policy will lapse.
- You broke the law.
If you use a vehicle in violation of any land law, your insurance company has the right, in many cases, and may even be required by law, to invalidate your insurance policy.
Always remember that the insurance policy you buy is a legally binding compensation contract between you and the insurance company. Therefore, it comes with all the terms and regulations that you need to comply with to ensure its validity.