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5 Reasons Your Car Insurance Might Not Cover You in an Accident


Car insurance compensates you for an accident that’s not your fault, and it allows you to compensate another driver for an accident that is your fault. But there are many scenarios where your policy could be voided, giving your insurance company the right to refuse payment if you were to make a claim. Here are five times your car insurance might not cover you in an accident.

  1. You’re using your car for undisclosed commercial purposes. If you’re an entrepreneur, have you considered that your personal car insurance might not cover your vehicle when it’s being used for business purposes? That’s exactly what happened to this Toronto driverwho found out too late that the occasional deliveries she made for her business voided her personal policy. If you are using your car in the operation of your business, contact your insurance provider right away to advise them of your situation and secure the proper coverage.
  2. You’re charged with impaired driving. Driving under the influence is a serious offence that comes with serious consequences, ranging from a fine and demerit points, to a license suspension and jail time. In addition, impaired driving most likely violates your insurance policy, meaning you’ll be personally responsible for covering the costs if you damage someone else’s property or injure them. Finally, you could be considered a high-risk driver, meaning you might have a hard time finding an insurance company that will cover you after an impaired driving charge.
  3. You’re not paying your premium.Even if it’s not intentional, missed premium payments could leave you without insurance if you insurer choses to cancel your policy for non-payment. If you know you’re going to miss a payment, call your provider in advance to discuss the situation and see if there is a solution that will allow you to maintain your coverage while you sort out your finances. You can also set up automatic payments and renewal for your coverage to ensure it doesn’t lapse, but remember to compare multiple car insurance quotes online a few months before it renews to make sure you are still getting the best deal.
  4. You’re committing insurance fraud.Insurance fraud is a problem that impacts everyone who buys car insurance. In Ontario, high instances of fraud have resulted in some of the highest insurance rates in the country, despite the province having one of the lowest rates of accidents and fatalities. If you’re caught committing insurance fraud –  which can include misrepresenting where you live in order to secure a lower rate, or exaggerating repair costs after a collision – your claim will be denied and your policy could be cancelled. Like an impaired driving charge, committing insurance fraud can also make it harder for you to secure future coverage.
  5. You’ve modified your vehicle without disclosing it to your car insurance provider. If you love tinkering with your car, keep in mind that you could accidentally void your policy if you make certain modifications without disclosing them to your provider. If you’re planning to change something about your vehicle, touch base with your insurer first to ask if it impacts your coverage. For example, modifications that change the way your vehicle operates, or ones that make it more vulnerable to theft are probably not allowed.

If you suspect you could be voiding your policy – even unintentionally – reach out to your insurance provider today to discuss your situation and find the right coverage for your vehicle.

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