A breach of contract can be defined as the refusal or failure to carry out duties as described in the conditions of a contract by any one of the contracting parties. When you take out car insurance you enter into a contract with the insurance company. The insurance company undertakes to provide you with cover against loss and damage as described in the policy. The amount of cover will depend on the type of car insurance policy you took out, be it comprehensive; third party, fire and theft; or third party only.

There are many conditions that you as the insured party must adhere to. As an example it is a condition that your car should always be in a roadworthy state. Another condition may be that you should install a security system such as a tracking device or immobilizer in your car. Paying your premiums on time is also a condition. If you have stated that you keep your car in a locked up garage overnight that also becomes a condition of your car insurance policy.

If you are found to be in breach of any of the terms, conditions or provisions of the policy the insurance company cannot be held liable to pay out on any claims you make. Breach of a major condition (also called a fundamental breach) will give the insurer the right to treat the contract as null and void. It is therefore very important that you familiarise yourself with all the terms and conditions of your car insurance policy.