Car insurance is your financial safety net for unexpected mishaps on the road. However did you know that certain actions or inactions could void your cover?
Many Kiwi drivers aren’t aware of how easily their insurance can be invalidated, leaving them to foot hefty bills when things go wrong. To help you stay protected, Assurant have unpacked the common mistakes New Zealand motorists make and how you can steer clear of them.
Why keeping to the rules and being honest matters when it comes to car insurance
1. Breaking the Law
Driving under the influence of alcohol, illegal drugs, or even some prescription medications could void your policy. It’s not just about impaired judgment or accidents caused under the influence, Your intoxication may still be considered a factor in claim investigations, even if you’re parked up responsibly. Assurant may still have the right to deny your claim.
Remember to always drive carefully and safely. When Assurant investigates an accident claim, we’ll want to know that you followed the speed limits and the road code.
How to avoid it: Follow the law. Don't drink and drive, and check with your doctor about how medications might affect your ability to drive. It’s better to be cautious than to risk losing both your insurance and your licence.
2. Not Keeping Assurant Updated
Assurant calculates risk based on the information you provide. If you’ve moved to a new address, added a regular user to your car, or made modifications (like adding tinted windows or custom wheels), failing to notify Assurant of relevant changes may result in the denial of a claim under your policy.
Changes such as using your car for work (like delivering food or joining a ride-sharing platform) also fall into this category.
What might seem like a small change, could end up costing you thousands.
How to avoid it: Always update Assurant about life changes. Whether it’s changing where you park, sharing the car with family members, or starting a new job that requires your car, it is best to be transparent. A quick phone call or email could save you from problems later on.
3. Using Your Car for Uninsured Purposes
Assurant’s personal car insurance policies tend not to include cover for business use unless this has been declared and agreed to by Assurant when taking out the policy. If you’ve started doing ride-share gigs, delivering goods, or using your vehicle as a tradesman’s transport, you need to let Assurant know. Using your car in ways not disclosed to Assurant might leave you unprotected in the event of an accident.
Plus, involving your car in any sort of racing on or off the road (including pacemaking, hill climbing, reliability trials, rallying, speed tests, or any other similar motorsport event) might be your idea of fun, however it is a no-no on the standard car insurance front.
How to avoid it: Check your policy wording to see what you are covered for with your policy, especially if you’re using your car beyond regular commuting and personal trips. Notify Assurant if your vehicle usage changes to stay properly covered.
4. Neglecting Maintenance
An unroadworthy vehicle is a surefire way to void your insurance. Driving without a current Warrant of Fitness (WoF) or ignoring necessary repairs can put you and others at risk. Assurant expects you to maintain your car to safe and legal standards.
How to avoid it: Schedule regular tune-ups, keep your WoF and vehicle registration current, and don’t ignore potential safety issues like worn tyres or faulty brakes. A well-maintained car is not only safer but also helps keep your insurance intact.
5. Providing Fraudulent Information
Not being truthful with Assurant is never a good idea. Claiming your car is mostly parked in a secure garage while it’s actually on the street or not telling Assurant who the regular drivers of the car are, can come back to haunt you. Assurant is within its right to cancel your policy or refuse your claims.
How to avoid it: Be honest! Assurant uses your information to assess risk and set premiums fairly. It might be tempting to bend the truth, but short-term savings aren’t worth potential long-term losses.
6. Carelessness
Assurant expects policyholders to take reasonable precautions. Leaving your car unlocked, keys in the ignition, or valuables on display makes you vulnerable to theft or damage. If you’re found to have been negligent, Assurant could deny your claim.
How to avoid it: Always lock your car (even when in a garage), remove valuables, and store your keys in a secure place. You could also think about additional security measures, such as a high-quality steering lock. Especially when parking in open spaces, such as on the street or in public carparks.
Simple habits like these can save you from both theft and an insurance headache.
7. Driver’s Licence Validity
Don’t forget to check the expiry date of the driver’s licence of all those that are insured to drive the vehicle. All drivers of the car should always have their licence on them when driving too.
Plus, they should keep within the restrictions of the licence. So, no going solo if they are a learner or late-night cruising without a supervisor for those on a restricted licence.
It is key to note that a person can only drive using an overseas driver’s licence for 12 months from their last date of entry into New Zealand. If that person has been in New Zealand more than 12 months, then an overseas driver’s licence can no longer be used. And they must obtain a New Zealand driver’s licence.
How to avoid it: Each time you renew your car insurance; you should make a habit of checking the validity of the driver’s licence of those insured to drive the car. Ensure the licence is valid for the entire term of your insurance policy. Plus if you have a named drivers only policy then don’t allow persons not named to drive the vehicle either.
8. Beware of Distractions in the Vehicle
It is illegal to use a hand-held mobile phone when driving, so definitely avoid any use of it, including when stopped at intersections or in traffic.
When driving with pets, you could find your insurance invalidated if your pet was loose in the car and distracted you, causing an accident.
How to avoid it: Turn your phone off before you set off driving, unless it is connected via a hands-free device. And make sure your four-legged friend is properly secured, ideally in the rear of the vehicle.
Practical Tips to Stay Covered with Your Car Insurance
- Review Your Policy Annually - Use your insurance renewal notice as a reminder to check your details. Make sure everything is up-to-date.
- Keep Accurate Records - Note any modifications made to your car and maintain receipts for servicing or repairs.
- Stay Communicative - Don’t hesitate to contact Assurant if you’re unsure about how changes might affect your cover.
- Keep Paying Your Premiums - Especially come renewal time. If you miss payments, Assurant could cancel your policy, leaving you driving uninsured.
Why Keeping Your Insurance Up-to-Date Really Matters
Car insurance is your safety net, but it only works if it’s valid. By staying on top of updates and avoiding these common pitfalls, you can ensure you’re covered when you need it most. Plus, keeping Assurant informed may even lower your premium in some cases. For example, moving to a safer suburb or installing a car alarm could reduce your risk profile and save money.
It all comes down to communication and care. Update your policy as life changes happen and treat your vehicle like the asset it is.
Remember, a little effort today could save you thousands tomorrow. If it’s been a while since you’ve checked your policy, take ten minutes today to review it. Your peace of mind is worth it.
Happy (and insured) driving! 🚗
Note that this a general guide designed to assist you to avoid some of the common pitfalls – in all cases the actual terms of your policy prevail. If you have any questions, please don't hesitate to contact Assurant on email ([email protected]) or phone (0800 776 832).