Car Insurance - How honesty increased my premium

NIW_2

I would like to share with the other forumites something that happened to me at policy renewal time. I'm 40, have a clean licence, been driving for 23 years and have full no-claims. Pretty good chance that my insurance renewal is usually low.

In July 2011 the numberplates were stolen from my car. I informed the police, received a report form number and was advised to inform my car insurer (Hastings) that the plates had been stolen and supply the report number. Which I did.

I thought nothing of this until my renewal came through and I discovered that it was a whopping £110 more than the year before. I did a quick insurance comparison check just to make sure that all premiums hadn't gone up by such a ridiculous amount (they hadn't) and called Hastings to query the increase. Their response: "the claim that you made last July has increased your premium".

My response: "what claim? I don't recall asking you to contribute towards the £15 it cost me to replace my numberplates."

They kept insisting that, upon police recommendation, I had informed them that my plates had been stolen, constituted a claim and warranted a premium hike.

This argument went on back and forth for close to an hour before I was put through to the renewals department. I explained what had happened, how I had not claimed for anything and was being penalised for being honest.

Fortunately I spoke to someone with a modicum of common sense and he informed me that the "claim" would be removed from my details and a renewal sent out.

If this has happened to you too, please argue the case with your insurance provider. If they are going to add a stealth hike due to simply informing them that something has happened to your vehicle, will any of us bother reporting thefts?

InsideInsurance

Its because lots of people aren't honest that everyone pays inflated premiums. Generally people are more interested in reducing their own premiums than considering the impact on everyone else... obviously goes beyond insurance too

System

Well done for not letting the insurance company get away with it. They will try it on with loyal customers and hope they get away with it. (Which they probably do more often than not)

And then the numpties in the insurance industry wonder why a large proportion of policy holders do not bother to inform the insurer for minor bumps or thefts like this, when they hike premiums for no "good" reason, it's a mad world we live in

Sally_A

They probably logged it as an "alert" on the claims section, so if they ever had a police check, or an incident involving the cloned vehicle, it was noted that it might be the cloned vehicle rather than you. If left outstanding it would have stepped back bonus at renewal.

We've had similar where we are unsure if it was a cloned motorcycle (brand new), or main dealer error when issuing plates (same bike - different colour), our innocent client had a speeding fine, but the photo confirmed it was not him.

As a broker, we note our system, and also declare it to insurers under the "material facts", but have never known a bonus step back because of it. Handy, as we often get the Police phoning up with MID queries, so if they've stopped the "dodgy" vehicle, we can alert them to it.

We had a phone call once from Lancashire Police asking if we'd expect our Wiltshire clients tradeplate to be driving around Blackburn.....nope! and client confirmed the same.

I'm glad you eventually spoke to someone with a bit of sense, talking to the drones in Sector G can be especially frustrating.

PS. Use a broker

NIW_2

Thanks to all who commented.

Sally A - I did ask the insurer how this could be a claim when it was simply an advisory upon recommendation. So far (a year later) my plates appear not to have been used fraudulently and I hope it was just local youth playing up.

As for using a broker - I use online providers AND a broker for my insurance. I purchased a second car earlier this year and when I realised that my no claims discount could not be applied to the second policy contacted a broker I used to deal with. He was able to insure the second car with the same amount of no claims discount and found it was cheaper to add my husband as a named driver. Thinking back, I probably should have put the insurance in my husband's name so he could finally build up his own no claims after being a named driver on my policy for years, but I didn't!

tearaway39

I followed NIW & Sally A's comments with interest as I am anticipating a similar related situation in Oct. I too am happy to be perfectly honest with completing my insurance renewal due in early October, but do not want give information that may increase my premium unecessarily.
Let me explain: I am 70 years old. Had a kidney transplant in 1993 and diagnosed with angina 2 years ago (DVLA are aware of both these although strictly they do not have to be declared to DVLA). The angina is not the type that has to be declared to DVLA as it does not affect my driving. I declared both these, as usual, when renewing my car insurance last year.
Just under 1 month ago I was taken to hospital with a suspected heart attack, but was it is on record it was not a heart attack. My query is - should this latest episode by declared to the insurance company when renewing or taking out a new policy? My own feeling is that it should not as it was not a heart attack and my medical situation remains the same.
I would be interested to hear peoples' views, particularly Sally A with her experience.
Many thanks for your help.

Quentin

See what your policy asks you to declare - if there is any ambiguity over what they want to know about regarding health then tell them!

Just not worth it if they are able to invalidate your policy following a claim (not only would they refuse to pay for your own damage, but if a third party claim is made against you, the insurer will deal with it then pursue you to reimburse them).

hcb42

If it wasnt a heart attack, then I wouldnt have thought you needed to tell your insurer, any more than I would tell mine I havent had a heart attack.

What might be relevant though is what is it, and does that have to be further advised to DVLA and to your insurer....

tearaway39

Thanks Quentin & hcb42 for your comments. 'It was a blip' according to the doctor hence my comment about it not affecting my current medical situation.
Of course, to declare or not declare is always a tricky situation. Have insurance companies a history of giving customers 'the benefit of the doubt' or informing them that the information volunteered is not necessary? Once the subject is raised it is there for ever. However I feel 'safety' is the best policy (excuse the pun!) so I am going to discuss it with the insurers, after checking the policy, & see how it goes from there.
Again I appreciate your comments.

antrobus

NIW wrote: »

In July 2011 the numberplates were stolen from my car. I informed the police, received a report form number and was advised to inform my car insurer (Hastings) that the plates had been stolen and supply the report number. Which I did.

NIW wrote: »

So far (a year later) my plates appear not to have been used fraudulently and I hope it was just local youth playing up.

When my wife had her number plates knicked, it wasn't until 18 months later that the dodgy insurance claim emerged, so you might have to be patient. She reported it to the police as well (but only as a result of my nagging) though it never occurred to either of us to report it to her insurers, so we didn't. Funnily enough she was insured with Hastings at the time as well.

Hastings are an odd company though. At renewal time the notice was full of BS saying that her insurance product was 'not available anymore' but they were offering her the nearest equivalent (its car insurance !!!!!!), and when she didn't renew sent her a letter saying that they weren't going to charge her the £50 cancellation fee this time round.

talulah25

antrobus wrote: »

At renewal time the notice was full of BS saying that her insurance product was 'not available anymore' but they were offering her the nearest equivalent (its car insurance !!!!!!), and when she didn't renew sent her a letter saying that they weren't going to charge her the £50 cancellation fee this time round.

Hastings are a broker so if the company she was insured with had withdrawn the scheme she was on then Hastings are required to advise you that they can no longer offer this scheme and where possible offer you an alternative. So this wasnt BS, it was THE TRUTH!