What voids car insurance? 7 common mistakes


You may think you can forget about car insurance once you purchase your policy. But while that can be true, you still need to avoid accidentally voiding it. It’s good to know what to steer clear of so you can drive with confidence.

Here are seven common mistakes drivers – yes, even sensible ones – can sometimes make. The good news? They’re all pretty avoidable!

Missed premium payment

This sounds like a no brainer, but it’s more common than you think! It’s easy for premium payments to slip your mind when you have lots of other bills to keep track of. Luckily, there’s an app for that!

The AAMI App lets you easily see when your premiums are due so you can quickly pay them online.

Download the AAMI App

Ridesharing without telling your insurer

Don’t forget to inform your insurer if you suddenly start driving for a ridesharing service like Uber, Ola, DiDi or Shebah.

Keep in mind that not all insurers cover ridesharing. However, AAMI does! Our Comprehensive Car Insurance can extend to providing ridesharing services – just make sure you let us know that you’re using your car in this way. We don’t impose any limits on the number of hours you can rideshare drive while comprehensively insured.

Get a Car Insurance Quote

If you already have a policy with us and you’ve just started ridesharing, simply:

1.    Go to ‘My Account’ and click ‘update policy’.

2.    Under ‘car usage’, select ‘ridesharing’.

Someone else is driving

Although AAMI covers unlisted drivers in most situations, not all insurers do. So, to be safe, always list additional drivers, even if your friend just takes it for the occasional spin.

And while unlisted drivers are included in your AAMI Car Insurance policy, you should note that if they’re involved in an accident, you may need to pay a higher excess if they’re under 25 or an inexperienced driver.

For more info on excesses, read our handy guide.

Not letting your insurer know about modifications 

Let your insurer know if you make changes to your car, even if it’s just a new paint job. You’ll want to ensure that the sum insured listed on your policy reflects what the car would actually cost to replace, mods and all.

Worn out tyres

Good tyres are important — not just from an insurance point of view, but also a safety one.

In Australia, the legal tyre tread depth is 1.5mm. Not sure what tyre tread is? We go over that, as well as other tyre care tips, here.

Overloading your car 

If you’re overloading your car — whether it’s with people or items — you may not be covered by your policy. Stick to the weight your car was designed to carry, or what’s permitted by the law.

Driving under the influence of drugs or alcohol

This one seems obvious, but a lot of people don’t know that this can apply to certain prescription drugs too. Think sleeping pills and some cold and flu tablets that affect your concentration.

To be absolutely sure about what voids your specific car insurance policy, check your PDS.


Insurance issued by AAI Limited ABN 48 005 297 807 trading as AAMI. Read the Product Disclosure Statement before buying this insurance. Go to aami.com.au for a copy. This advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it.