Do insurers independantly update record of points on licence?

cepheus

I was attempting to convince two people last night that they had to inform their insurer if they had recently acquired any points on their licence, even between insurance renewals. Of course they refused to accept this, they prefer to live in a fantasy world.

Problem for me is that I don't wan't them driving me round if they are not fully insured. One even drives a bus!

It makes me wonder how many newly acquired points are not reported to insurance companies and how much the rest of us pay to make up for it.

Does anyone know if insurers automatically acquire the information from DVLA now? I know they do from one another.

rs65

cepheus wrote: »

Does anyone know if insurers automatically acquire the information from DVLA now? I know they do from one another.

Don't think so. Most rely on utmost good faith although some will ask for a copy of the licence at inception and/or when a claim arises.

I think the two people you spoke to are wrong.

Quentin

cepheus wrote: »

..........Problem for me is that I don't wan't them driving me round if they are not fully insured. One even drives a bus!.....

As long as they have a policy, any claim a third party wanted to make against them would be honoured by the insurer (even though they might void the policy on the grounds of deliberate non disclosure)

RedFraggle

When I rang my insurer to tell them my husband had got points for speeding they said they didn't need to know until the renewal was due. I found that a bit odd so made sure I got the name of the person I spoke to and kept a note of the date and time of the call.

InsideInsurance

I haven't heard of an insurer getting info directly from the DVLA, it could have changed in the last few years since I stopped looking at motor insurance but I would be very surprised if it had.

Different insurers have different processes, certainly a few I have worked with in the past only wanted to know about points at renewal and not mid term but others I have heard do want to know mid term.

The risk of not telling is ultimately down to your own cover, as has already been mentioned, even if the policy was voided for none disclosure the insurance company would still legally have to manage any TP claim as the RTA insurer (though there is the tiny risk of the accident occurring on private land not covered by the RTA) which gives the same cover but potentially longer timescales for settlement.

cepheus

Anyway at least if I'm covered that's something.

They aren't the sort which do policy reading, it's far too sensible. I'm not going to make myself any more unpopular by forcing them to check.

This is an answer to a similar question, not sure how accurate it is.
http://www.theanswerbank.co.uk/Insurance/Question903987.html

Quentin

RedFraggle wrote: »

When I rang my insurer to tell them my husband had got points for speeding they said they didn't need to know until the renewal was due. I found that a bit odd so made sure I got the name of the person I spoke to and kept a note of the date and time of the call.

Not "odd".

Each insurer sets their own conditions regarding changes.

Some (car/occupation/address where car kept etc) usually need to be done ASAP, and others before renewal.

Check what it says in your policy about which changes need to be passed on immediately.

dacouch

InsideInsurance wrote: »

I haven't heard of an insurer getting info directly from the DVLA, it could have changed in the last few years since I stopped looking at motor insurance but I would be very surprised if it had.

Different insurers have different processes, certainly a few I have worked with in the past only wanted to know about points at renewal and not mid term but others I have heard do want to know mid term.

The risk of not telling is ultimately down to your own cover, as has already been mentioned, even if the policy was voided for none disclosure the insurance company would still legally have to manage any TP claim as the RTA insurer (though there is the tiny risk of the accident occurring on private land not covered by the RTA) which gives the same cover but potentially longer timescales for settlement.

Chaucer check the DVLA for all new motor incl motortrade at inception as well as checking CUE. They also check at the time of a claim

A surprising amount of customers do not declare convictions even if you warn them Chaucer will check. If they discover any, you get a letter asking for a written explanation. If they accept this you then get a letter requesting any increase in premium along with an admin fee.

The underwirter was telling me that they spend about £150k a year on DVLA charges but it generates about £350k in premium. He said they are very pleased with the system

cepheus

As far as I can see from this, cross checking with the DVLA is a recent change assuming it went ahead.

Insurance and DVLA records

Later this year (date to be confirmed), the second change will enable insurers to cross-check data provided by customers against the DVLA database.

"I welcome this move, too," says Simon.

"Insurers – including the AA – do have real problems with non-disclosure of information on insurance submissions. For instance, past motoring convictions being withheld, driving experience being exaggerated, and even age or address being falsified in order to obtain a cheaper premium.
"It will also be a useful tool to help ensure that mistakes aren't made by either DVLA or insurers."
He points out that cross-checking the details will be optional, with potential customers being asked if their data can be cross-checked against the DVLA's records.

"It is unfair that honest motorists should have to bear the brunt of the cost of those who try to defraud insurers, and we have been calling on the government to put these measures in place for some time.

"I'm sure that AA Members and customers will also welcome these important steps in helping to tackle insurance crime."

3 February 2011

However, surely if you have an accident they will check your licence anyway, which will have the points on, so it is disadvantageous for most drivers not disclose immediately since they will be paying for a useless insurance policy?

kingstreet

As Quentin says, you need to check the requirements of your own insurer by reading your own policy documentation. It's not possible to rely on a mate's experience, because his insurer's policy may not match yours.

As an example here's the clause from the current Esure policy booklet, page 27 S8;-

8. Your duty of disclosure
You must tell us immediately if any of the following happens:
• you change your car
• you make modifications or changes to your car which improves its value, performance, appearance or attractiveness to thieves. This includes, but is not restricted to, changes to the engine, engine management or exhaust system, changes to the wheels or suspension system, changes to the bodywork, such as spoilers or body kits or changes to the windows, such as tinting
• you want to use your car for a purpose not included in your Schedule
• you become aware of any medical or physical condition of any driver covered by your policy which may affect their ability to drive
• you or any other driver covered by your policy are convicted of a motoring offence other than fixed-penalty parking offences or is banned from driving
• you or any other driver covered by your policy is involved in an accident whilst driving another vehicle or suffers a loss, such as a theft, of any other vehicle or makes a claim on any other motor insurance policy
• you change the address at which you normally keep your car
• you or any other driver covered by your policy are convicted of any offence relating to fraud, arson or dishonesty
• you or any other driver covered by your policy change occupation
• you change your annual mileage.
• you or any other driver covered by your policy cease to be a permanent UK resident

We may then re-assess your cover and premium. If you do not tell us about any relevant changes, we may:
• reject or reduce your claim; or
• declare your policy null and void.

http://www.esure.com/wcm/groups/public/documents/webcontent/wcmprod_es_motor_policy_booklet.pdf

InsideInsurance

dacouch wrote: »

Chaucer check the DVLA for all new motor incl motortrade at inception as well as checking CUE. They also check at the time of a claim

A surprising amount of customers do not declare convictions even if you warn them Chaucer will check.

As I say, I've been stuck in back office and Solvency II for the last couple of years so not as close to motor developments as I was.

Its not surprising in the slightest. The statistics for those declaring their vehicle was kept in a garage/ driveway when their home didn't even have a garage/ driveway were equally shocking back when one of my clients looked to remove the question on their systems.