Auto insurance is required to drive in this country. However, that does not mean it is an infallible system. At the end of the day, it is a contract, meaning all involved parties must agree on the terms. If you are about to get your auto insurance in Chicago, you may want to avoid these baseline mistakes that can result in a voided insurance plan.
#1. Non-Disclosure
You need to be completely up front about all relevant information when going in to apply for an insurance plan. Otherwise, you could be staring down severe increases to your insurance premiums. Worst case scenario, your entire plan can be voided. Be sure to list in your head every relevant thing that your insurer needs to hear, and if you can’t think of anything else, ask them during the negotiations if there is anything you’ve left out. This mistake can sneak up on you, so stay vigilant when going in for those negotiations.
#2. Failure to report modifications
Whereas you see a personalized customization to your vehicle, your insurer sees modifications as potential health and safety risks. You need to report during negotiations or well before the modification is made that you plan to make the modification. That way, you and your insurer can work out an agreement on how the plan shall be changed. Otherwise, your plan can be “loaded” or outright voided by the insurer. Not reporting mods to your vehicle is not only an unnecessary oversight considering the consequences. It’s also flat out irresponsible to not inform your insurance provider of this change.
#3. Committing Insurance Fraud
Insurance fraud is when you either lie about the specifics of a loss, file fraudulent claims, take payments for treatments that weren’t received, or include previous damages in any insurance claims. These will immediately void your insurance plan, and likely land you in jail. As such, it is imperative that you do none of these things, for your own good. Especially since this will be included on your record, making it harder to get auto insurance in the future.
#4. Drunk driving
Driving under the influence of any substance can void your insurance very quickly. Your insurance provider is much less sympathetic, and equally less likely to pay off any damages. Particularly if the damages bring harm to someone else.
There are a myriad of ways to void an auto insurance plan, often varying from provider to provider. Luckily, it’s pretty easy to avoid these pitfalls, especially since most insurers will inform you of them if you ask.
