Car Insurance - What claims must you declare?

solveweb

Okay this might start off sounding like a stupid question... but please read before you tell me that I have to declare all claims regardless.

My situation is this: I did have my daughter insured under my policy. Shortly after she passed her test she had an accident. It was her fault and the claim was settled by the insurance company. After a lengthy 'discussion' with my daughter I then removed her from my policy.

I then switched insurance provider using one of the online comparison websites... and I did not declare the claim because I was not involved in the accident in any way - its her claim not mine. For me this makes perfect sense.

Now I recently phoned up the insurance company (Kwik Fit - NEVER AGAIN) and asked - hypothetically - how much it would cost to add my daughter back on to the policy. This led to the "revelation" that I hadnt declared the previous claim and they have now cancelled my policy. The call centre woman explained this as being my own fault for being stupid enough to put a risky driver on my policy in the first place. Nice.

This now means that I think I have to check the "Have you ever had a policy cancelled or special terms imposed?" box which will damage my insurance worthiness for life. Are Kwik Fit correct? Have I justifiably had my policy cancelled? Is there anything I can do about it?

mikey72

I hate to say it, but it seems right. The claim was made on your insurance, not your daughters.
She'll have to declare the accident as well if she takes out insurance herself.
The only redress is to try to convince Kwik Fit it was a genuine mistake, and see if they can re-instate the insurance for an increased premium.

solveweb

I tried that and they said they believe me that it was a genuine mistake but the response was 'tough luck mate'. Surely that's not right?

mikey72

I'd ring back, and speak to a supervisor, failing that, it's worth writing to them, as you have said, insurance being cancelled will be a difficult one to get over.

StephenMarsh

I disagree although I will admit im not 100% so if someone has evidence to the contary.

Think about the logistics of obtaining a quote the OP hasnt made a claim or had an accident so if his daughter is no longer on the policy who do you accredit the accident and claim too, himself ? cant be.

Think of the flip side if the OP was being added to someone elses policy would he have any accidents to declare...no !!

The question asked is have you had any claims and its then asked for each driver on the policy, its not asked has there been a claim on the policy !

mikey72

The driver has the accident, but the policyholder has the claim though, on their behalf. The insurance contract is with the policyholder, the premium is paid by the policyholder, and the claim is paid to the policyholder.

solveweb

Eh? Sorry Stephen you've got me completely confused. Whats an OP?

I think - if I understand your post correctly - your rationale is the same as mine was. I've been driving for 20 years with no accidents that were my fault and the only claim I have ever made was when my car was stolen 12 years ago. Yet the Kwik Fit advisor told me Im a risky driver because I made a bad judgement call in adding her to my policy.

I dont dispute it was a bad judgement call, but if I have to declare the claim as a policy holder, then I also have to declare the claim when a named driver? In what way does this make a policy more risky?

mikey72

It's a double whammy really.
She is right.
The named driver had an accident, so she's a bad risk.
You cost them money, so you're a bad risk.
The other question that always comes up is if she had stayed on your policy, do you then declare the accident twice as well?
Once for her for the accident, and then again for your claim on it?
My opinion is yes, then they can't weasel out of anything later, others disagree.

Quentin

solveweb wrote: »

Eh? Sorry Stephen you've got me completely confused. Whats an OP?

Stephen is wrong.

You do need to declare any claims you have made on your policies.

OP = original post(er)

Your "bad judgement" is just their opinion, and irrelevant to them cancelling your policy, but your non declaration of the claim is a matter of fact!

StephenMarsh

mikey72 wrote: »

The driver has the accident, but the policyholder has the claim though, on their behalf. The insurance contract is with the policyholder, the premium is paid by the policyholder, and the claim is paid to the policyholder.

Not true the driver makes the claim as she was driving and shes named on the policy.

As I say I wasnt sure it was just my understanding however Ive soken to an insurance underwriter following my post for some clarification and I was right in my thinking its has any driver made a claim and the answer is no as it was his daughter making the claim not Solveweb..

Solveweb sorry OP means original poster meaning you its my lazy typing.

I would speak to a manager at kwick fit I feel your polciy needs reinstating as its been cancelled in error. I must admit I had a bad experience with kwick fit once speaking to a kid who clearly didnt understand the ins and outs of motor insurance.

mikey72

StephenMarsh wrote: »

Not true the driver makes the claim as she was driving and shes named on the policy.

As I say I wasnt sure it was just my understanding however Ive soken to an insurance underwriter following my post for some clarification and I was right in my thinking its has any driver made a claim and the answer is no as it was his daughter making the claim not Solveweb..

Solveweb sorry OP means original poster meaning you its my lazy typing.

I would speak to a manager at kwick fit I feel your polciy needs reinstating as its been cancelled in error. I must admit I had a bad experience with kwick fit once speaking to a kid who clearly didnt understand the ins and outs of motor insurance.

Different to my experiences then.
My insurers won't even speak to named drivers, I wouldn't think they would send them the cheque at the end of the day either.