How to Invalidate Your Car Insurance

An insurance company can invalidate your auto insurance if you break any of the rules laid out in your insurance policy. Sharing your vehicle with a driver who isn’t on your policy and failing to report accidents to your insurance company are all ways to invalidate your car insurance. Follow our advice in the guide below to keep your coverage and avoid invalidating your car insurance policy.

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Natasha McLachlan is a writer who currently lives in Southern California. She is an alumna of California College of the Arts, where she obtained her B.A. in Writing and Literature. Her current work revolves around insurance guides and informational articles. She truly enjoys helping others learn more about everyday, practical matters through her work.

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...

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Reviewed by Laura Walker
Former Licensed Agent

UPDATED: Jul 16, 2021

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It’s never a good idea to break the rules laid out in your insurance policy. Whenever you choose to allow a person who is not covered on your policy to drive, or break any of the other rules associated with your insurance coverage, your insurance company has to have options in place to avoid responsibilities for losses incurred due to your violation of their mandates.

One option that your insurance company is entitled to make in these cases is to invalidate your insurance policy.

Front Coverage

Some parents take a potentially risky gamble when they choose to front insurance company for their offspring’s car. These types of infractions can result in an increase in premium payments assessed as a lump sum or an invalidation of the policy. This is a very high price to pay in the long run.

Car Sharing

Another bad idea is to let someone use your vehicle without telling your insurance company about it. You pay insurance premiums to cover yourself, not all of your friends that you might unwisely choose to lend your car to. If you choose to do this and don’t inform your insurance company, you could end up getting your insurance policy invalidated. You should also be aware that this can also result in your insurance company refusing to pay for any claims incurred by the person that you loaned your car to. It’s okay if you want to loan your car to a friend, but you have to tell your insurance company beforehand, so they can verify the insure-ability of the borrower.

Failure to Report Incidents

A lawsuit could be filed against your insurance company if you are in an accident and neglect to tell them. Some people think that keeping their insurance company in the dark is a great way to avoid rising insurance costs. This is not a good idea at all. Even if another vehicle is at fault in an accident, not telling your insurance company can leave you and your insurance company vulnerable to a lawsuit.


If you’re prone to getting speeding tickets or other citations related to your driving, don’t try to keep it a secret from your insurance company. Some people think that they can sneak past infractions past their insurance company and get the coverage they need. If your past indiscretions come to light, your insurance company can invalidate your policy after it is already activated, which could wind up costing you a lot of money.

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