Car insurance - should DM tell new insurer about this accident?

[dryshampooer]

I've been trying to persuade my DM (late 70s) that she could save £££ by shopping around and not allowing her car/home insurance and utilities to automatically renew. This year, after receiving an eye-watering car insurance renewal quote, she finally allowed me to help her use a comparison site, and we confirmed her policy with a new insurer, and paid for the year ahead in full.

A few days after arranging the new policy, someone drove into DM's car whilst it was parked outside her house. She claimed through her existing insurance (the policy still had a couple of weeks to run) and her car is being repaired at the moment.

I think she should tell her new insurer about this accident. DM says no need, as she wasn't covered by them at the time of the accident, and was honest on her insurance application with them (the accident hadn't yet happened on the day we arranged and paid for the new insurance.)

I'm trying to persuade her that it's always best to be completely honest with your car insurer, but DM is now arguing that this is why you shouldn't change insurer. Her view is that we wouldn't have "all this hassle" if she had just been allowed to stay with her old insurer, even though she's saved £££ by switching.

Obviously we would declare the accident on any future insurance applications. But for now, should I push on and persuade her to tell the new insurer, even though she will use this as evidence that it's "not worth the hassle" to switch anything ever again?

I think I agree with your mum.

You do realise that Insurance companies share data via the the Claims and Underwriting Exchange & the Motor Insurance Database?

She needs to tell the new insurer.

It's amazing how much detail insurers can access. At one stage, adding my daughter to my insurance, they told me there was an 'association' between her and a claim in Southampton. It took a bit of head scratching before we remembered she was named on her boyfriend's policy and that he'd had a shunt while living in Southampton during his degree.

Yes, but is that a reason for her to call them (to show that she's being transparent) or not to call them (as they've access to the info already)?

You tell them to be transparent.

Insurers access to the claims database is a backstop where they can check the accounts they are given are full and complete.

It will say on her policy that she needs to inform them of any changes and/or incidents. The fact this happened before the policy was in operation is irrelevant.
In the event of a claim (whether her fault or not) the insurer can use this as a reason to invalidate her policy and believe me, they will.
The fact they can access the information is not the same as her declaring it.

If your mum needs to claim with the new insurer and she doesn't disclose this claim, she could have her policy cancelled.

Good luck getting any insurance once you've had a policy cancelled.

#teamdaughter

Yes she needs to tell them.
The insurance needs to have the correct info on.
If it doesn't it's invalid.
There's the risk they'll think you've not told them on purpose as well.
She NEEDS to call them and tell them.

Thanks everyone. I'll have another go at persuading her to call the new insurer. Hopefully the risk of having her insurance invalidated/cancelled will clinch it.

I guess I have learned something, but I am really surprised by that!

Thanks again everyone for the advice. My DM did call her new insurer, to inform them about the accident covered under the previous insurer's policy. They have increased her premium by £160. I was surprised they could do this during the term of the policy (I expected the increase when she comes to renew, but not mid-term).

They will have backdated the change to the Inception date because that's when it should have been on there from

Although they can increase premium mid term depending on the reason

I had a small hit, didn't even make a claim on either side but because I had reported it on my insurance it came up when I was searching for new insurance.
The initial quote was cheaper, then when I proceeded with it, it increased as they could see my report against my details.
They know, you can't hide it