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

Assume Anything; If you are unsure then speak to the insurer or broker. What you might think is acceptable may not be to an insurer

Guess at ANY answer, whether it's No Claims Bonus, a date of an event (date passed driving test, date of a claim, value of contents/building or vehicle, annual mileage, etc)

Remove any conviction/claim or play about with amending details until you get the price you want (the price may not relate to what you need covering for)

Think you can use one set of No Claims Bonus against more than one vehicle (each policy earns it's own No Claims Bonus)

Think you can use No Claims Bonus from one vehicle type on another (Eg. Car NCB on Van, Motorcycle on Car)

Expect to get No Claims Bonus if you're not the policyholder

Expect the insurer to cover you for any change, it will depend on whether the change is acceptable to the insurer (if you know you are going to be changing something on you policy during the year, then check before you buy the insurance that they will cover the change too)

Think a non-fault claim can be left out (even non-fault claims can have a bearing on what an insurer charges)

Think a claim only reported for information purpose can be left out (it will have been logged under the C.U.E. Claims and Underwriting Exchange Database which insurers and brokers can gain access to)

Go into an old online quote and assume everything is the same (They won't be!)

Think a question is not relevant, every question you are asked other than name or gender has a bearing on what an insurer calculates their premium

In the past it was down to the would be policyholder to advise of everything a prudent underwriter would want to know. As we’re not all underwriters it was deemed unfair for the buyer to know what is and what isn’t relevant to an underwriter hence the Act was born. Therefore, if they don’t ask it you don’t have to volunteer it. However, what you do get asked, you must answer to be true and accurate, so get your facts straight.

With the advent of the Consumer Insurance (Disclosure and Representations) Act 2012 the onus has been passed onto the insurer or broker to ask you the questions to everything they want to know when you are applying for insurance.

Don't guess, it could lead to an additional premium if you get it wrong (and an administration fee) - check everything before you buy

Answer EVERY question truthfully and to the best of your knowledge

Make sure your No Claims Bonus/Discount is:

Check everything you have enter are correct before you buy if entering online (You cannot blame anyone, but yourself if it's wrong! - Even if you didn’t mean to make an error, your error will be not checking EVERYTHING)

Thoroughly check the Proposal Form or Statement of Fact, as this is the basis of your contract of insurance, if it's wrong or you have made a mistake, tell the insurer/broker immediately to correct it

Check anything you are unsure of with the insurer or broker before you buy a policy, no matter how small, it could be the big difference to the underwriters

Insure for the correct sums, underinsurance could mean less paid out than the amount you insure for. This is known as applying average (Eg. Insure for £50,000 and the property is valued at £100,000 i.e. Insured for half. The insurer would only payout £25,000 half of what you insured for)

Check any changes are going to be acceptable before you need them. Don't go and buy a new car before checking your insurer will cover it; Don't go and buy a Rembrandt and expect your insurer will be happy to cover it, but do expect there to be terms imposed upon the item if they do agree to cover it

Check the terms and conditions for charges/fees if you are going to make any changes to your policy or cancellation. Most brokers have charges to cover their costs (and that's not just pressing a few buttons), including; Buildings/Lease and Maintenance, Wages, IT Equipment and Support, Telephone Systems, Administration and Accounts Staff, Regulation Costs (FCA), Advertising, Printing, Postage etc

Do’s &

Don’ts