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Invalid insurance?

(24 Posts)
AngelEyes46 Thu 20-Apr-17 22:02:41

about 6 weeks ago, i had an accident where i hit another car. there is a possibility that he was rolling back so we agreed that we would not put it through our insurers. i reported it anyway but said that neither of us wanted to take it any further. the driver in the other car was a taxi driver. about 3 weeks ago, i received a letter from my insurers - they had received claims from 4 people who say they were in the taxi for i am assuming, whiplash. the driver did not wish to claim for any personal injury. i said that i could only remember seeing 1 person in the car and the impact was so minimal that i did not feel that there would be any claim and i was ok to go to court to verify this. i have received a further letter today - apparently i have not told my insurance company about 3 speeding fines - 2 in 2014, 1 in 2016. they are saying that my insurance may be invalid and i need to contact them within 7 days. does anyone know - whats the worst possible case and i suppose the best?

Orangebird69 Thu 20-Apr-17 22:04:52

Is it correct that you didn't declare your speeding fines?

AngelEyes46 Thu 20-Apr-17 22:06:07

yes

BlackeyedPetitsPois Thu 20-Apr-17 22:09:44

Speeding convictions are classed as a material fact for motor insurance. Not declaring it may mean your insurance will be voided.
Best case they may decide you mistakenly did not declare convictions and deal with the claims.

lakehouse Thu 20-Apr-17 22:10:49

Not declaring points can only affect claims you wish to make for damage to your vehicle- and even then it's grey! They can backdate a premium for increased risk but not refuse to pay claims entered from a 3rd party where valid.

AngelEyes46 Thu 20-Apr-17 22:11:03

And worst case - how will that work with anyone wanting to make a claim?

lakehouse Thu 20-Apr-17 22:12:08

You're still insured. They will claim against your insurer. It does not become your personal liability.

AngelEyes46 Thu 20-Apr-17 22:19:35

Thankyou lakehouse - could the insurer then claim against me?

MovingtoParadise Thu 20-Apr-17 22:20:29

Unless your speeding points that you didn't declare put you over into being banned ?!?

9 points you didn't declare? Did you have any before ?

AngelEyes46 Thu 20-Apr-17 22:25:30

i have had speeding points before but 9 has been the most. will the insurers still fight my case? and what do you think i should say to them tomorrow? when i spoke to them the other week, they asked me if they could connect to the DVLA and we had a 3 way conversation. the DVLA said about the points but the insurers didnt say anything to me regarding the points at that time

lakehouse Thu 20-Apr-17 22:38:03

The insurer can't claim against you. Worst case scenario is they ask you for an increased premium back dated to reflect what the premium would have been had they known about the points. The dvla point is just to check you have declared everything now. This really isn't a big deal in the context of your accident. Don't worry.

tralaaa Thu 20-Apr-17 22:56:01

Your insurer will want to know why you have not disclosed this information. They may want a written explanation. This is misrepresentation and you are likely to be voided or they could increase your premium. If you are voided this will have a massive impact on your future insurance

AngelEyes46 Thu 20-Apr-17 23:04:48

what is voided? and the reason i didnt disclose is because it just renewed automatically so i just didnt think. i dont know what else to say as thats the truth. i do remember when it renewed in 2016 i did try and negotiate the price and told them about another quote but they said that they dont drop the price purely because another company gives it lower. but, i am sure they didnt ask me about points or else i would have said

NewIdeasToday Thu 20-Apr-17 23:07:38

You should have declared the points for Speeding immediately, not waited for renewal.

It would be believable that you forgot to notify them about one lot of points. But three???

AngelEyes46 Thu 20-Apr-17 23:17:50

i'm not even sure if they were known in 2015, as in the ones that i received in 2014. as i said, it just renews automatically and i dont think anything of it. i dont even sign. newideas or lakehouse - do you have any experience of this type of thing?

tralaaa Sat 22-Apr-17 06:58:20

Void is when the underwriters cancel the insurance back to the start date - for you the renewal. This is a bad thing as it will effect future insurance and prices- you should inform your insurance company of any changes a speeding conviction won't effect the current years price ( when you get the conviction) but will effect the price from renewal as you are more of an insurance risk. Most companies will add on the conviction which will increase the cost of your future payments and charge you a lump sum payment for the underpaid premium from renewal. If the underwriters would not have offered insurance had they know about the convictions they may cancel or void or ask for a written explanation why you didn't tell them

Maybe83 Sat 22-Apr-17 07:08:18

Yes they can cancel the policy back to the renewal for non disclosure of material facts. Speeding points most definitely is a material fact.

The link explains what is called levels of indemnity and insurer may have. There is a provision in all insurance policys that states you have to advise them of any changes to circumstances that may impact the policy. Even on automatic renewal it states that you have to check the policy and if any information is incorrect let them know with in a certain period of time.

en.m.wikipedia.org/wiki/RTA_Insurer

Collaborate Sat 22-Apr-17 07:56:55

I entirely disagree with the analysis of lakehouse.

Your policy may be voided, and although that doesn't mean the people claiming from you can't claim against your insurance company, whatever they have to pay out they can reclaim from you. You need to instruct a solicitor to make sure they defend the case.

This is what happens when you don't disclose all relevant facts when taking out any insurance policy.

Collaborate Sat 22-Apr-17 07:59:53

Sorry - just read the link supplied by Maybe83. It will depend on whether your insurers would have declined to offer you cover with your points. Many would. They will try and wriggle out of it if they can, and who can blame them?

lakehouse Sat 22-Apr-17 10:03:35

Collaborate, it's what I do for a job. I don't need to rely on reading links. My advice is based on 20 years' actual experience and being one of the most senior insurance professionals in the country. You may disagree, but you're wrong.

Collaborate Sat 22-Apr-17 20:15:33

I accept my initial post was wrong. I'm just shocked that the insurer doesn't have the right to invalidate (as against the policy holder) for any failure to declare. It doesn't encourage proper and full disclosure.

AngelEyes46 Sun 23-Apr-17 11:06:20

thanks for all your help. i often see threads and wonder what the result of it was. so, I called my insurers the following day and said how sorry i had overlooked - i didnt have any excuse. he then asked me to hold and said that he would only keep me for a minute, came back to me saying that they are prepared to effectively backdate the insurance but there would be an added cost spread over the remaining term.
i a relieved.

lakehouse Sun 23-Apr-17 11:51:44

Glad to hear it. That's normal practice. Always better to keep all your info up to date in future. Hope you're feeling less stressed!

Marble2302 Tue 25-Apr-17 16:59:15

I used to work for a large insurance broker. If the insurer would have taken the risk at the inception date of the policy they will generally charge you the additional premium.

If they wouldn't accept the risk and some insurers won't accept someone with 9 points then the policy could be voided. This would make it almost impossible to get insurance elsewhere.

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