When filling in a quote for car insurance do you lie on your renewal price?

Gary_zero

In Martins holiday price haggling section he suggests, quote: To speed up the process, you could knock around a tenner off your existing price before you haggle, but don't go too far with this, as the agent will often ask for the name of the rival outfit. Is this not the same thing?

raskazz

Gary_zero wrote: »

In Martins holiday price haggling section he suggests, quote: To speed up the process, you could knock around a tenner off your existing price before you haggle, but don't go too far with this, as the agent will often ask for the name of the rival outfit. Is this not the same thing?

No it's not the same, because the principle of utmost good faith does not apply to buying a holiday, but it does apply to buying insurance.

greco_2

raskazz wrote: »

Yes it can be a material fact. Let's use the generally accepted standard definition of a material fact, quoted pretty much verbatim from the CII manuals:

"Any fact or circumstance that would influence the prudent underwriter's deicision to offer cover, or if cover is offered would influence the premium or the terms applied"

It is demonstrably a fact that would influence an underwriter's decision on what premium to offer, due to commercial considerations. Whether an insurer would use such a breach to void a consumer's policy is another question - but why take the risk?

And this is definitely not a material fact. Fact.

raskazz

greco wrote: »

And this is definitely not a material fact. Fact.

Not fact. Quite the opposite. It would clearly affect the assessment of what premium to offer. Which part of that don't you understand? Or do you disgree with the definition used? If so, on what grounds?

greco_2

Very well. Show me a proposal form or an Agreed Statement of Fact on which there is any reference to the previous insurer's premium. Anyone?

raskazz

greco wrote: »

Very well. Show me a proposal form or an Agreed Statement of Fact on which there is any reference to the previous insurer's premium. Anyone?

That's entirely irrelevant to the matter at hand. I reiterate, and feel free to actually point out specifically where you disagree on this reasoning:

1) Given the above definition of a material fact - which is the one used at common law ever since the Marine Insurance Act over a hundred years ago, as I'm sure you are aware - any fact or circumstance that would influence a prudent underwriter's decision on what premium to offer is a material fact (unless it lessens the risk or is a matter of law or public knowledge etc).

2) A premium quoted elsewhere will affect the decision of what premium to offer, as the OP has found because when he enters a lower premium the offered premium falls. Thus it is material.

As I said earlier, whether an insurer would actually use such a misrepresentation to void a policy is debatable. But it is clear that the premium offered elsewhere is material, if the proposer is asked the question.

greco_2

A proposal fprm or ASoF is the basis of the contract. What part of that don't you understand?

greco FCII

raskazz

greco wrote: »

A proposal fprm or ASoF is the basis of the contract. What part of that don't you understand?

greco FCII

I understand that perfectly well. But as I said, please explain - specifically - where the above reasoning is incorrect. And in any case - on online quotation form is merely the electronic equivalent of a proposal form!

dux001

Whether or not it's actual fraud in a legal sense doesn't matter. It's dishonest. If there are people about who are happy to live their life in a dishonest way, so be it, but I'm not going to be part of it.

greco_2

I really don't have the time or inclination and besides, there's a football match that requires my attention.

Simply put, an insurer will either be competitive or they won't. If he thinks you've already got a competitive price, he'll say so and walk away. If he's happy to compete, he will. He only wants to know the price to help him decide if he's wating his time. It is not a material fact.