3. Gradual depreciation
Car insurance is usually designed for accidents, so the normal depreciation process isn’t likely to be covered. This can include:
- Normal wear and tear
4. Restricted and unlicensed drivers
If you have chosen restricted cover (e.g. choosing cover for drivers 25 and over), your cover may be voided if someone under 25 drives your car and is in an accident. Similarly, if you let a friend or family member without a licence drive your car (and you’re aware of it), you’re likely to void your insurance and have your claim denied as well.
5. Overloading your vehicle
By carrying more passengers or load than your car is permitted to, you may put yourself at risk of voiding your car insurance. Towing may be an exception to this, however you’ll need to check with the car’s manufacturer to find out how much you can safely move.
6. Letting your premium lapse
If you forget to pay your car insurance premium, your policy may expire. Any damage caused after your renewal date is then not likely to be covered. That’s why it may be worth setting up an automatic direct debit to avoid a potentially costly oversight.
7. Hiring out your car
If you choose to hire out your car or are planning on driving for a rideshare service, you may not necessarily be covered in event of an accident. Claims can be excluded if they happen while your car is being used for certain financial gains. However, conditions may apply with this exclusion and can differ according to your policy.
Keep in mind, this isn’t a full list of exclusions, so it’s best to check your insurance policy’s product disclosure statement (PDS) for more information.