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Reasons Why an Insurance Company May Void Your Policy

By: Jack Claridge - Updated: 21 Apr 2015 | comments*Discuss
Void Insurance Policy Life Insurance Car

Many of us take having an insurance policy for granted especially when - in a lot of instances - we never have cause to use it. But there are times when we may need to call upon the insurance company to help us pay for essential repairs to our vehicles or homes, or even have dental or medical work done to ourselves so it is important to know that the insurance company will pay out if we need them to.

The unfortunate downside to having an insurance policy is that sometimes the insurance company may refuse to pay out or may void your policy and here we look at the reasons as to why that may happen.

Car Insurance

Car Insurance is one of the most common types of insurance that an insurance company may decide not to pay out on simply because it has one of the highest rates of fraud of all the different varieties of insurance available. Many of us spend much of our time in our cars and do so safe in the knowledge that we are covered by insurance should we have an accident or should someone collide with us but it is worth while knowing just why some insurance claims for cars are refused.

  • Driving in a car that does not have the right insurance band
  • Driving without a valid licence
  • Driving a car that has not been properly MOT'd
  • Being the passenger of a driver who has been disqualified
  • Being hit by an uninsured driver

The aforementioned are just a small number of the reasons as to why car insurance can be voided and it is important when you are taking out an insurance policy that you read the small print - or at least have it explained to you by your broker. Many insurance companies - but still not all - offer policies which cover you against being involved in an accident with an uninsured driver and it is wise to ask your insurance company about such policies before you take out a new policy or indeed renew an existing one.

Life Insurance

Life Insurance is something we all need especially when we are old enough to have a family of our own. The need for life insurance ensures that our family and loved ones are left provided for - where possible - and at least leaves enough money for funeral and other expenses after we have gone. Perhaps a morbid topic Life Insurance is something that when we begin working we should perhaps think of investing in.

Life Insurance can be refused - or voided - for one of the following reasons:

  • Failure to keep up with paying premiums
  • Providing fraudulent medical information
  • Failing to inform the insurance company of any illnesses you already have
  • Having an terminal illness not covered by the policy
  • Having a reoccurring illness that needs constant treatment

Many Life Insurance policies are provided on the basis that the information provided on the applications for such policies is accurate and one hundred per cent truthful so it is worth taking the time and effort to ensure any information you provide your insurance company with is correct. The same also applies to Health Insurance.

Home Insurance

Home Insurance is another one of those types of insurance that has a myriad of reasons as to why it can be voided. With Home Insurance it is normal nowadays for insurance companies to provide what is known as 'Old for New' policies - meaning that an old item if it is damaged or simply gives up due to old age will be replaced with a new item of similar value or specification. However there are exceptions as to why the insurance company may not pay out. They may not pay out if:

  • The insurance company feels the item being claimed for has been deliberately damaged
  • The insurance company may not be satisfied with receipts for the goods
  • The insurance company's loss adjustor is not happy with the scene of a flood or fire
  • If there is doubt in a fire officer's mind as to the legitimacy of a fire or flood
  • If there have been an unusually high number of claims made on a policy

As always when entering into an agreement with an insurance company it is important to understand the nature of the policy - or policies - that you are signing up for. After all during the course of the following twelve months - or longer if it is a Life Insurance policy - you are the one paying the monthly premium to ensure you are covered in the event of accident, damage or illness.

As many insurance companies now operate self-service websites you can check the nature of your policy before you sign up for it or consult a broker.

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@MrsJ. Check the conditions of your insurance to make sure your father is a named drive and is fully covered to drive the vehicle. As long as your vehicle is correctly insured, taxed and has a valid MOT, there's no reason why you cannot keep it for your father to drive you around in.
InsuringIt - 19-Jan-15 @ 11:00 AM
I have had to surrender my licence due to I'll health, but still have my vehicle so that my dad can drive me round is my insurance valid. My dad as a full licence and insurance on his own car.
MrsJ. - 15-Jan-15 @ 7:59 AM
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