a simple guide to getting it right when buying insurance
What might seem logical to you, could be completely wrong -
Unless you have worked in insurance, what you may get told about insurance could be hearsay.
There are so many misconceptions and myths about insurance that they seem to be true, because everyone you speak to says the same (wrong) thing.
The Claim or Conviction Was on My Motorcycle, so I don't Need To Disclose It On My Car Insurance
You must disclose ALL claims including non-
I don’t need to disclose non-
You must disclose all claims whether it was Fault, Non-
Protected No Claims Bonus Means My Premium Won't Increase
Protected No Claims Bonus, does what it says and that's it. It will stop your No Claims Bonus (NCB) from being reduced following a claim against your policy, whether it was your fault or not i.e. a Theft, Fire, Vandalism or Malicious Damage claim although not your fault has still resulted in a claim. Normally you have 2 lives within a 3 or 5 year period depending on the insurer, so you can have 2 claims against your policy before they will step-
Comprehensive Cover Means You Can Automatically Drive Another Car
Check Your Insurance Certificate -
This cover is not meant to be relied upon and is really meant for emergencies for example if you were a passenger in a friends car and they were suddenly taken ill, if your policy has the cover it would mean you could drive their car without the need to contact your friends insurer to get added to the policy.
Just because you have Comprehensive Insurance doesn't mean you can drive another car under your policy. Driving Other Cars (DOC) extension on a motor insurance policy is something that an insurer may give to you as a benefit of your policy, but if you are under 25 or your occupation is anything to do with the Motor Trade, Taxi Service or a Delivery Service (including Royal Mail) you may not get this benefit. Also, the cover provided is Third Party only, to cover you on another vehicle not belonging to you and not hired or leased to you. You must gain the owners permission and the other vehicle must have insurance in its own rights. It will be limited to Third Party Only cover for use in the UK territorial limits on another private car and it will be only the policy holder that gets it. This cover is not normally given on any Commercial Motor policies including single vans. However, some motorcycle insurers do give this to ride other bikes.
My Speeding Conviction Was Over 3 Years Ago So It’s Off My Licence Now
All convictions are declarable for up to 5 years under the Rehabilitation of Offenders Act 2013, motoring convictions are declarable for 5 years.
After 4 Years if you send your licence to the DVLA they will normally remove the convictions from your Counterpart Licence. However, they are still declarable under the Act and insurers generally ask 5 year history, hiding it could have implications in the event of a claim.
Lower Engine Size Means Lower Insurance
There are many things an insurer takes into account from one vehicle to another, not just it's performance or engine size. They take into account the age of the vehicle (the older the lower the value, so a discount may be given in their calculations), how long you have owned it (familiarity discount) is a fairly new concept amongst insurers, but they are always looking at statistics to see a correlation between policy details and claims frequencies or severity (i.e. how often they happen or the size of claim). They have found that when a vehicle is newer to a driver the claim frequency is higher. It stands to reason that you will not be used to the handling, braking efficiency and size of the vehicle against your old one and are more likely to have a claim. This can be a bit difficult to explain when you have bought an identical car to your old one, but the history of the new vehicle could be different from the old and as such the performance too; the previous owner may not have serviced the vehicle regularly or kept the vehicle in a good condition.
Insurers also take into account the repair costs and parts availability, because the time to repair a vehicle will have a bearing on the resultant labour charges they will have to cover. Storage charges may be incurred if parts have to come from another country.
The Claim Wasn't My Fault So My No Claims Bonus Won't Be Affected
If you have a claim where your insurer pays out money and is unable to recover their costs from another party (i.e.:Vandalism/Fire/Theft/Hit Whilst Parked and Third Party drove off, it will be a claim against your policy and affect your NCB or be a life against your Protected NCB.
Fault in insurance is not literal, it means a claim against your policy where the insurer is not able to recover their costs.
My Accident Wasn’t My Fault, So I Don't Need To Disclose It
You must disclose all claims, whether it was your fault or not and even if no claim was made as there could be a record on the Claims and Underwriting Exchange (CUE) -
Any claims that have occurred on your policy even if that driver is not on your policy now still needs to be declared. When you added a driver to your policy your are accepting the risk of that person being under YOUR insurance. As such, insurers still take this into account on future policies. It would not be a true reflection of your policy history if you kept adding drivers who had a claim under your insurance and then just removing them to get around disclosing a claim.
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