a simple guide to getting it right when buying insurance

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No Claims Discount Expires After 2 Years | Protected No Claims Discount Does Not Protect Your Premium | Manipulating Your Details to Gain a Better Price Could Invalidate Your Policy | You Don't Automatically Get Driving Other Cars With Comprehensive Cover | Should I Send Copies of Documents to My Broker/Insurer? Yes | Each Policy Earns It's Own No Claims Discount, You Can't Use It Twice | Insuring Your Child's Car In Your Name Is Called Fronting And Is Fraud! | Don't Assume Your Company Car No Claims Discount Will Be Accepted By Your New Insurer - Check First! | Counterpart Licences Abolished, You May Still Have To Provide a Code From DVLA to your Underwriters to Check Your Details | Motorbility Policies Do Not Earn a No Claims Discount | Motoring Endorsements Are Declarable For 5 Years

Comparison Sites Get Paid For Introducing You To Insurers & Brokers - Not For Making Sure Your Details Are Correct; That Is Down to You!

Comparison sites are big business, especially for insurance.  No one  likes paying for insurance and the quicker you can get this annual chore out of the way the better.  So we all jump on a few comparison sites (an average 2.5 sites) to try and save some money on our policy from last year.  These comparison sites are very user friendly and you can zip through a quote inCar in Shopping Trolley Credit https://www.flickr.com/photos/pictures-of-money/16687004114/ about a minute before getting a list of prospective brokers or insurers, touting their wares and trying to entice you with offers and freebies.  Are you more concerned with the price, the free cuddly toy or your details being entered correctly?  No-one thinks they make mistakes, but do you actually check your details when it says, “Please confirm you have checked all the information you have entered is correct”?

I agree they are great, compared with days of old; Trawling through Yellow Pages (remember them?) and guessing who’s going to be best, calling for quotes and giving the same information over and over again or maybe visiting a couple of High Street agents, to have a face to face conversation and try to beat them down on price saying the guys up the road can do better.

However, faster is not necessarily better in all respects, because it’s easy to make mistakes.  I have been in the insurance industry for 20+ years and I’ve seen the regulators come and go and be replaced, IPT (Insurance Premium Tax) introduced and increased (twice).  Since the aggregators (comparison sites) have become more and more prevalent, insurers have noticed when dealing with claims that details entered online at the time of purchase, don’t match what is advised at claims stage.  As such, insurers and brokers are required to carry out validity checks more and more. Not only are people making mistakes, but there are also those who want to buy their policy incognito, without being quizzed about their information.  They change things to try and better their price, but in doing so and “manipulating” their details, they are potentially making their policy void. Even if you mistakenly enter wrong information the same can apply, because you have to agree that you have checked all the information you’ve entered is true and accurate before paying for your policy!

Your insurer or broker can also ask you to supply copy documents at any time during the policy year and most policy booklets or brokers’ terms and conditions advise you of this.  Things such as no claims discount proof or copies of driving licences, V5C (Registration Document/logbook) etc.  This is to ensure the details you’ve entered are correct, not to try and catch you out, but to ensure you and your insurer are protected correctly.  Why shouldn’t they check the information?  After all they are the ones who will have to pay out in the event of a claim and if they haven’t collected the correct premium for the risk they are covering, why should they deal with the claim?  Would you sell someone your car if they didn’t pay you all the money?  Same principle, insurers are not going to indemnify you if you have not paid the correct amount for what they are insuring.  If your details are not correct, they are not insuring the correct risk!

Understanding the questions you are being asked and checking what you answered before you buy, will reduce the likelihood of you making a mistake!

Your insurer or broker can ask you to supply copy documents at anytime during the policy year…

Not sending them could result in the policy being cancelled..