Car insurance - non fault claim & undeclared penalty points

whatnow?

Hi there

I would appreciate advice from anyone with experience of this problem or specialist knowledge. I know what the legal position is but I would like to know what is likely to happen and what course of action I should take.

Earlier this week I was involved in a non fault accident where someone pulled out of a side road and hit my car from the side. He admitted liability at the scene and the emergency services attended. The police took statements and they seemed to think it was clearly his fault.

The following day my insurance co (Diamond, part of the Admiral group I believe), informed me that my car is likely to be a total loss. They then took details of my V5, MOT & we had a conference call with the DVLA who confirmed my licence details and also pointed out that in Nov 2010 I received 3 points for an SP30.

At this point I realised that I had forgotten to inform my insurer about the points. My renewal was at the end of Dec and I had every intention of shopping around, declaring the points etc but I had a lot going on and just clean forgot. By the time I realised the policy had already renewed so I just cut my losses and decided to let the policy run.

Obviously now these points have come to light, they could technically cancel my insurance etc but it was a genuine oversight, not an attempt to defraud the insurance company as I would have thought the premium increase would be negligible and increased monthly payments would not have bothered me.

I'm wondering whether I should contact them and explain my oversight or just keep quiet until they say something (which they are bound to!). I need to get this resolved asap as at the moment I have a hire car through them which I don't want to hold on to for 2 weeks + only to find out I have to pay for it. I can't just send the hire car back as I need a car to get to work.

Sorry, bit of a ramble but any advice would be appreciated as I'm losing sleep over this thinking they may not pay out for my car

chanz4

they will make you pay a higher increase premium, about £80

HappyMJ

Don't claim on your own insurance. Claim on the other partys insurance. You said it was their fault and they accepted liability. If you had an at fault claim your insurer would refuse to pay out at all.

Quentin

HappyMJ wrote: »

If you had an at fault claim your insurer would refuse to pay out at all.

Unnecessary scare mongering!

They don't refuse to pay out over inadvertent non disclosure!

To end up with a voided policy, then the insurer would have to be one that wouldn't have taken on the OP if they had known about the 3 points, or decided the non disclosure was deliberate.

Always a possibility, but in no way a "given" as you authoritatively tell us!

whatnow?

Thanks for replies - so I'm thinking I should just call them today and point out my oversight? The reason being that either way I guess it's better to know and deal with the consequences rather than end up owing thousands for this hire car?

whatnow?

Oh and the plan is that the third party's insurer pay up but I think I have to go through my own insurance co?

Quentin

You don't have to go through your own insurer.

If you claim directly off the third party insurer, and they accept liability, then they may have an "innocent third party" department happy to look after all your claim (do repairs/provide replacement car etc) with no outlay at all by you.

If you go via your own insurer you will still need to claim your uninsured losses off the third party (eg your excess)

whatnow?

But seeing I have already started the process with them and got the hire car etc surely they will already have incurred expenses which they will bill me for and will be a whole load of hassle for me to claim back from TP?

Given that I will go through mine unless they cancel my policy, should I call them and explain my oversight with the SP30?

corbyboy

whatnow? wrote: »

Oh and the plan is that the third party's insurer pay up but I think I have to go through my own insurance co?

Your insurance company have to be aware, but you don't necessarily have to "go through" them.

If you contact the third party insurers directly and tell them they can take the car and have it fixed they will be more than happy to do it because they can keep their costs lower.
Also, if you go through your own insurers you will have to pay your excess and claim it back later.

whatnow?

The car is a total loss - it can't be repaired. Plus it is in some salvage yard somewhere under the care of my ins co. Think it would be a whole load of aggro to back track now as I'd end up owing my co money for storing car, hire car etc.

Can anyone advise on whether I should phone Diamond and explain my oversight?

Quentin

whatnow? wrote: »

Can anyone advise on whether I should phone Diamond and explain my oversight?

Yes of course!