5 Mistakes That Could Void Your Car Insurance

 5 Mistakes That Could Cancel Your Car Insurance

Think your Car Insurance is safe once you’ve signed the paperwork? Think again. Even small, unintentional mistakes can lead to your policy being cancelled – leaving you uninsured when you need protection the most. From overlooked details to risky habits, most drivers are unaware of the things that could jeopardise their coverage. 

In this article, we’ll cover vehicle insurance mistakes that could result in policy cancellation – and how to avoid them. 

3 Types of Insurance Covers

Each Car Insurance Policy offers different levels of cover.

• Comprehensive Cover is the most extensive. It protects you against a wide range of risks outlined in the policy, typically including accidental damages, natural disasters, car theft, fire, and third-party damage.
  If you’re not sure how your insurance works when it comes to hijackings or stolen vehicles,be sure to check our article that speaks to car theft and what it means for Car Insurance. 
• Third-Party, Fire and Theft Cover is a more affordable option. It still covers you for theft, fire, and damage to others’ property, but not for accidental damage to your own car.
• Third-Party Only Cover is the most basic. Covering you for damage caused to someone else’s vehicle or property if you're at fault – but your own car won’t be covered.

Each policy suits different drivers and driving habits. You don’t have to go fully comprehensive – what matters most is understanding the fine print. No matter what policy you opt for, overlooking the small details could lead to trouble.

For the finer details on coverage, you can find more information from our post on different types of Car Insurance.

5 Important Details to Never Overlook for Car Insurance

With every Car Insurance Policy, there are a few things to keep in mind before signing the paperwork. Make sure you read the fine print carefully so you understand exactly what you're paying for — and what actions could cause your policy to be cancelled while your Car Insurance is still active.

1. Dishonesty 

Insurance is built on mutual trust between you and your insurer. The premium you pay is calculated based on the level of cover you choose and your individual risk profile – both of which depend on the accuracy of information you provide. It’s essential to be truthful at every stage, from applying for cover to submitting a claim. Providing false or misleading information can break the terms of your contract, potentially leading to denied claims or even cancellation of your policy. 

2. Late Premium Payments

Missed payments are the leading cause of policy cancellations. To keep your cover active, it’s important to pay your premiums in full and on time. Most insurers allow a grace period – typically up to 30 days after the due date, giving you time to catch up. If the payment is made within this window, your policy stays in place. If not, your cover may lapse. Legally, your insurer is also required to notify you in writing within 15 days of the missed payment. 

3. Breaking the Rules: T&Cs

Every policy comes with its own set of terms and conditions, and your cover is only valid if you stick to them. If you fail to comply, your insurer has the right to reject your claims or even cancel your policy. Insurers may also cancel a policy if your risk profile changes significantly and leads to frequent or excessive claims. 

Since T&Cs vary depending on the insurer and the type of cover, it’s important to read and fully understand them before committing to a policy. If anything is unclear, just ask for more information. 

Some terms, like being honest when applying and keeping up with premium payments, are standard across most policies. Others may be specific to the kind of insurance you’re taking out. 

4. Driving Without a Valid Licence

To qualify for vehicle insurance, you must hold a valid driver’s licence. If your licence becomes suspended, expires, or is otherwise invalid, it’s your responsibility to inform your insurer immediately. In some cases, you may need to update the designated driver listed on your policy to keep your cover active. Your premiums will then be adjusted according to the new driver’s risk profile. 

5. Not Reporting Changes to Your Risk Profile

Your insurer calculates your premiums based on your current risk profile. Things like your lifestyle, driving habits, and where your vehicle is parked. Any significant changes to these factors must and should be reported. If you don’t, your insurer could cancel your policy, especially if the new risk level leads to more claims. 

For instance, if you initially insured your car while working from home and kept it in a secure garage, but later moved to the coast with only street parking and started commuting more than you used to, your risk increases. 

Vehicle insurance is where these changes are often forgotten and overlooked. Yet failure to update your insurer could leave you without cover when you need it most. 

What Happens If Your Policy is ‘Cancelled’

If your insurer decides to cancel your insurance policy, they’ll typically provide 30 days’ notice. However, if the cancellation is due to fraud or dishonest behaviour, they’re allowed to terminate the policy immediately, without notice.

Timely premium payments and full transparency are key to maintaining your insurance. By keeping your insurer up-to-date about any changes that might affect your risk profile, you help them tailor the right cover at the best possible price, while avoiding unpleasant surprises like policy cancellations. 

What Car Insurance is Best in SA?

One of the easiest ways to find affordable Car Insurance in South Africa is by comparing quotes. With MotorHappy, you can request a personalised Car Insurance quote in just a few minutes. We’ll compare offers from multiple leading insurers to help match your budget, without the extra admin and hassle.

Final Thoughts

When it comes to finding the best Car Insurance in South Africa, ignorance isn’t bliss – it can be expensive. We get it, life gets busy and no one has time to read through the endless T&Cs, but knowing what can void your policy could be the difference between a paid-out claim and a massive out-of-pocket expense.

If you’re still shopping around for something that fits your pocket, MotorHappy makes it easy. We’ll help you find the best Car Insurance options for your lifestyle and budget.