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Getting car insurance should always be the first step before buying a new car. 

Once you’ve compared quotes and have decided on your preferred insurance policy, it’s best that you read all the details before signing the documents.

Once you’ve signed, it means that you agree to all the policies and instructions stated and explained by the insurer. You should be able to rest knowing that you have your car insurance in place. 

However, your policy can also be canceled anytime because of a variety of reasons, especially if you break any conditions on your policy. 

Knowing the most common reasons for your car insurance cancellation will help you avoid this and get a better chance for a successful insurance claim.

What Is Car/Auto Insurance?

Auto insurance is an agreement or contract between you and the insurance company, which secures you against financial loss in case of theft, damage or accident. 

The insurance company agrees to pay for your losses as set out in your insurance policy as it provides coverage for the property, liability and medical expenses. 

This is mandated across the US but laws could vary depending on each state. 

Auto insurance is quoted individually to suit your budget and needs. These policies are renewable and issued for a six-month or one-year period. 

What Does Invalidated Insurance Policy Mean? 

Invalidating your insurance means that your policy is ruled null and void by your insurer. 

In normal situations, your car insurance should be straightforward and simple. The insurance company should pay your claims. However, if you break the rules and conditions agreed upon, your claim can still get denied even if you pay your monthly premiums. 

12 Common Reasons Why Your Car Insurance Can Be Canceled

1. Undisclosed Modifications

You are not restricted from changing or upgrading your car's overall look and performance. However, your insurance company should be made aware of all the modifications to make sure that changes won't affect your chances for approval in the future. 

Misinforming your insurer about the modifications whether intentionally or unintentionally, could lead to invalidation of your policy. 

2. Incorrect Address

Providing a different address or state than what you currently live in can also invalidate your policy. 

Rural areas are considered low risks and are far away from accident prone areas and high crime zones. So some people living in the city would claim that they live in the rural areas to get lower insurance rates. Others just simply forget to update their policies when they move to a new address.  

Regardless, it’s always best that you inform your insurance provider about your correct or updated address. 

3. Intentional Car Accidents

Some people think it's a good idea to fake the theft of the vehicle. Some could really get creative by setting their own vehicles on fire or staging a car crash just to file and get an insurance claim. 

If proven to have done such act, your insurance policy will be canceled and you may have trouble finding a new car insurance. You could also face civil and legal penalties. 

4. Overloading Your Vehicle

Carrying heavy stuff and too many passengers will exceed your vehicle’s load capacity. 

Going over your car’s weight and passenger limit can be very dangerous. Causing accidents due to overloading can also void your car insurance policy. 

5. Expired Or Revoked Driver's License 

All auto insurance policies require that you have a valid and updated driver’s license. If you get caught driving with an expired or suspended driver’s license, your policy can be canceled.  

Same rule applies if you get caught driving without your license at the time of the accident or if you drive an unregistered vehicle. 

6. Medical Conditions That Affect Your Driving

A certificate from your physician testifying your ability to drive safely may be required for health conditions like heart attack or epilepsy. 

You should also keep your glasses on if you are advised that it’s needed for you to drive safely. You won’t be able to file a claim if you don’t have these when you get into an accident. 

7. Choosing The Wrong Policy (Class Of Use)

You should always declare or choose the policy option on what you’re using your car for. You will not be covered if you declare that it’s for personal use but used it  for business instead. 

For example, you chose social, domestic and pleasure, but used your car for business trips or you drove passengers for hire. Your policy can get canceled. 

8.  Fronting an Unlisted Drivers 

Some car owners will list their older relatives as the primary owner to lessen their insurance premium. That’s because experienced drivers with clean records usually get lower premiums. 

If the insurance company finds out, you will get fined and your policy will also be invalidated. You can also be blacklisted and may face charges for insurance fraud. 

Allowing other persons not listed in your policy to drive your car can also be grounds for your insurance company to refuse your claim.  

9. Not Disclosing Past Accidents And Driving Offenses 

You need to be honest about your past accidents and driving offenses. 

Of course, the more offenses you have, the higher the premium would be to cover the potential risk that you carry. 

Your claim can get declined and your policy will be  invalidated if proven that you’re lying about this information. 

10.  Negligence and Reckless Driving

Forgetting to lock your car could lead to theft. Driving through a flooded area or slippery road, which can be dangerous, can fall under “driver negligence” and could invalidate your policy.  

Having a car insurance doesn’t mean that you could be careless or reckless on the road. Driving under the influence and participating in car racing can also cancel your policy. 

11. Miscalculation or Guessing Your Mileage

Don’t guess about your car’s annual mileage. Make sure that you’re indicating the correct one. 

If you get into an accident and the mileage exceeds what you’ve indicated on the records, your car insurance can be canceled. 

You can try to check your MOT records, if you're not sure about your annual mileage. Find the last two records and look for the mileage on both.  Then, calculate the difference. 

 12. Non Payment or Missing of Premium Payment

Of course, these premiums should be paid on time and in full. If you fail to pay the premiums on time,  then your insurance company will cancel your policy. 

Following the conditions or rules set by your insurance provider and understanding the exclusions is crucial for your safety and will also save you a lot of money.