Car insurance - implications of not declaring claim

Jazzking

Hi All,

Hope you can help, hypothetically speaking of course...

Car insurance is up for renewal next month, I've just completed my first year of insurance with Churchill (paid £630 last year) and was claims free until Dec last year when someone broke into the car and nicked the[expensive] car stereo.
Stupidly I claimed on the insurance, and they came and fitted a replacement but now I'm thinking I should have not claimed and just bought one out of my own money which would have saved a bit come renewal time (didn't think it would have much effect since it's not an "accident")

Been searching round for the best quotes, and found one when I declare the claim it's £540, but if I don't declare the claim, and state that I've not no NCB then it's only £434.

Is it worth it for £100? They wouldn't ask for !!!!!! of NCB as as far as they're concerned I'm a brand new driver in the same position as I was this time last year. However, I'm aware that I would be treading on thin ice but would only be an issue if I had to claim - and I've read reports from other people when they've not declared something and had to claim, the insurance have simply charged him the difference between the premium he paid and the premium he would have paid with one claim.

I really need to save some money this year, and am fairly sure I wouldn't be claiming on insurance since car is not worth that much but don't want it to come back and bite me in the bum if I *do* need to claim...

Can insurance companies check to see if any claims have been made from previous insurers - is there a central database somewhere with the details of every car owner on it and the previous insurance history?

impy78

I wouldn't risk it.

Insurance companies have a shared database called the myafter (not sure on the spelling), report, which logs every claim made in the UK.

Most underwriters will check this when the policy is set up, if not beforehand.

Usually it would be a case of a slap on the wrists and they would require you to write them a letter explaining why you did not close the claim.

Then, there are companies who will cancel your policy due to non-disclosure, which you would have to declare, as again, it is noted on the myafter report. Many companies will refuse clients who have had insurance cancelled due to non disclosure.

The most important thing to advise you would be that you would essentially be committing fraud.

As your insurance would be null and void, you may as well, not bother taking out insurance and driving uninsured, as if you take out a policy without declaring this, you are driving uninsured.

Sorry to be such a bore, but I get a fair few "theoretical" enquires each day!!!

But at least you have asked before doing, unlike some people (who then phone me to compalin, when their insurance gets cancelled!)

Jazzking

HI Impy,

Thanks for the info, very useful. I've actually just been searching the forums for people who asked similar questions and seeing the responses they got I decided it's definitely not worth riking it!

I did notice however, that online where I got the quote it says:

Enhanced No Claims Bonus
You were unfortunately involved in an accident in the last 12 months. We may be able to re-apply your no claim bonus. So please phone my colleagues on ***********, they may be able to substantially reduce your premium. Tell them what happened regarding your claim and they´ll do everything they can to reduce your premium. If you prefer click on ´Try it!´ and I will re-run the quote for you with an extra year´s no claim bonus. It will only give you an idea of the premium available, but you can always call us afterwards.

Is this a realistic expectation; in what circumstances would the premium be reduced, or does it depend on the broker/insurer? Insurance Co is Doric btw.

impy78

If the claim was a non fault incedent, for example.

(Sadly, unless you can catch the little swines who swiped your stereo and force them to reimburse your insurance company, it will be listed as a fault incedent).

I would call though, they might be able to to apply a starter discount. Some companies do have special discounts and introductory rates.....