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.
Learn a few common mistakes that can impact your insurance coverage – and how to steer clear of them.
Driving under the influence
Accidents caused by the influence of alcohol or drugs – including some legal medications that can impair driving ability – can result in your claim not being accepted.
And avoiding alcohol and drugs when driving doesn’t just help you maintain your insurance coverage. It also makes the roads safer.
Having unlisted drivers behind the wheel
Do you share the wheel with other drivers? Not every insurer covers incidents that occur when an unlisted driver was behind the wheel. So, to be safe, always list additional drivers, even if it’s just a friend who takes your car for an occasional spin.
Unlisted drivers are covered by AAMI Car Insurance. However, you may need to pay a higher excess if you claim for an incident that occurs if your car was driven by someone under the age 25 or an inexperienced driver. Check your policy documents for exclusions and limitations.
Not being upfront with your insurer
Honesty is always the best policy. Failure to disclose important information, such as previous claims or driving offences could affect your coverage. It could even lead to your policy being cancelled.
Making fraudulent claims
Making a false insurance claim or providing false information in relation to an insurance claim is serious. This could include providing inflated vehicle repair bills or staging an incident.. Doing something like this could result in your claim being denied, your policy cancelled, or even legal consequences.
Using your car for business without informing us
If you're considering using your car for commercial purposes – for example, becoming a driver for a ridesharing service – check your policy docs first. Depending on the specifics of your policy, you might not be covered.
Car modifications
While many modifications are covered, some may affect your insurance. Always check with your insurer before making significant changes to your vehicle.
At AAMI, we cover legal modifications and accessories fitted to your car. If your vehicle is insured for a specific ‘amount covered’, that’s the maximum amount you’ll be paid if it’s stolen or written off. Make sure it’s enough to replace your car as it was before the incident — including your modifications and accessories.
You may want to consider that road legal modifications vary from state to state and territories. Take a look at what’s allowed in your region:
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.
Keeping your insurance valid
Here are a few things you can do to help ensure your coverage is not affected:
- Provide accurate information when applying for or updating your policy.
- Inform your insurer about any changes in your circumstances or vehicle.
- Respond promptly to any safety recalls for your vehicle.
- Understand who can drive your car under the terms of your policy.
- Notify your insurer of any incidents, even if you're not at fault.
Every insurer has different exclusions and limitations, so if you change providers, your coverage may not be exactly the same. It’s a good idea to read the Product Disclosure Statement (PDS) or contact your insurer for clarification before making a decision.