Many drivers assume that once they secure auto insurance, they will have their coverage forever. Unfortunately, this isn’t always the case. There are certain things that you can do that will result in your auto insurer canceling your policy. So, be wary and avoid making these mistakes if you want to keep your car coverage.
1) Lying to Your Auto Insurer
When you apply for auto insurance, it is important that you are truthful and upfront with your insurer. Lying or concealing information constitutes insurance fraud and will result in the cancellation of your policy when discovered. Some of the worst offenses are lying about criminal records, concealing past car accidents, and misrepresenting driving habits (for instance lying about your mileage or commute distance).
2) Failing to Report Auto Modifications
While many car owners are excited to modify their vehicles by installing an upgraded stereo system, tinting their windows, or installing massive rims, failing to report these upgrades can result in your insurer denying coverage. This is especially true if your insurer feels that the modifications increase your car’s risk for accident, theft, or other losses. Make sure you check with your insurer before you decide to modify your car in any way.
3) Working for a Ridesharing Service
If you work for a ridesharing service such as Uber or Lyft, then your insurer will consider this as high-risk. This could result in your insurer canceling your policy, especially if you have not been forthcoming about using your car for this purpose. If you are interested in working for a ridesharing service, then consult with your auto insurer beforehand. They may allow you to keep your coverage so long as you supplement it with commercial auto coverage.
As a driver, you need to avoid making these mistakes if you want to keep your car coverage. Do you need help securing the right auto insurance to meet your needs? If so, then contact the professionals at Mike Leonard Insurance Agency. Our dedicated team is eager to find you the right coverage from one of our many carriers including: Kemper, MetLife, Nationwide, Travelers, The Hartford, Safeco Insurance, Progressive, and American Strategic Insurance.