Car insurance increased 10% for "no fault" bump ?

zogg

Hi all,

August 2..Renewal quote from LV...£234.82. Renewal date 01 Sept.

August 18..P.O. man reverses into my car in my drive. Empty at the time.

August 20 Letter from Reserva (P.O. agents) admitting liability..Take car to garage, get it repaired, have loan car, etc. etc.

August 30..Letter from LV stating premium now increased by 10% to £258 because of this incident !!!!

I have made no claim ! Increase is £24 and cancellation £35.

Is this right ?

Thanks.

Quentin

zogg wrote: »

August 2..Renewal quote from LV...£234.82. Renewal date 01 Sept.

August 18..P.O. man reverses into my car in my drive. Empty at the time.

August 20 Letter from Reserva (P.O. agents) admitting liability..Take car to garage, get it repaired, have loan car, etc. etc.

August 30..Letter from LV stating premium now increased by 10% to £258 because of this incident !!!!

I have made no claim ! Increase is £24 and cancellation £35.

Is this right ?

Thanks.

You should have reported the incident to your insurer (maybe you did) - but they are entitled to amend the premium as the incident happened prior to renewal.

You need to check the policy wording to see whether or not they are entitled to charge a cancellation fee. If not and you decide to cancel then dispute it and escalate to a complaint if they insist on charging you - though they may have been "entitled" to an admin fee anyway for you reporting the incident.

zogg

I must be naive Quentin, but as the other party are admitting full liability (covering letter) I was under the impression that my insurance was Therefore "untouched", and should have remained at the initial quote.

No claim was made by me though I felt legally bound to report it, stating I would not be making a claim with my own insurer ?

lazer

Unfortunatelty,

Insurance companies do increase premiums as a result of non fault accidents.

You can however claim the additional cost of the person at fault.

Quentin

zogg wrote: »

I must be naive Quentin, but as the other party are admitting full liability (covering letter) I was under the impression that my insurance was Therefore "untouched", and should have remained at the initial quote.

No claim was made by me though I felt legally bound to report it, stating I would not be making a claim with my own insurer ?

Yes, you are bound by your policy conditions to inform them of incidents like this.

(As your profile history had changed since the renewal quote was produced, then the claim on your record has changed the risk - non fault claims often result in premium loadings)

Quentin

lazer wrote: »

You can however claim the additional cost of the person at fault.

You can claim it, but don't hold your breath expecting to get it paid!

talulah25

zogg wrote: »

I must be naive Quentin, but as the other party are admitting full liability (covering letter) I was under the impression that my insurance was Therefore "untouched", and should have remained at the initial quote.

No claim was made by me though I felt legally bound to report it, stating I would not be making a claim with my own insurer ?

Unfortunately it is a growing trend that Insurance Companies will increase your premium following a non-fault accident, the FOS are aware of this and find it acceptable. Insurance companies use the defence that if you have a non-fault accident you are more likely to be at fault in your next incident. As Quentin said claiming any increases back from TP is possible but highly unlikely and a long drawn-out process. I know its not much consolation but £24 is a relatively small increase compared to others I've seen first hand.

westv

talulah25 wrote: »

Insurance companies use the defence that if you have a non-fault accident you are more likely to be at fault in your next incident.

I really don't see the logic with that argument. Do insurers have any stats to back that up?

molerat

westv wrote: »

I really don't see the logic with that argument. Do insurers have any stats to back that up?

Of course they do, they can manufacture any stats for whatever they want to prove

talulah25

westv wrote: »

I really don't see the logic with that argument. Do insurers have any stats to back that up?

You're missing the point, molerat is completely right, it doesnt matter that it makes no sense to anyone with an ounce of common sense, thats just the way it is and if FOS have accepted it then everyone else has to.

Your choices...take it on the chin or shop about and pay cancellation

thenudeone

There is quite a lot of debate about the subject here:
https://forums.moneysavingexpert.com/discussion/3445777

But in my experience it didn't make any difference with Aviva.