Changes to Insurance Mid-way through policy

Helene87

Hi,

I hold a car insurance policy for a single vehicle which I pay for straight off on an annual basis. Since I have taken the policy out, some of the information that I supplied to the company has changed. For example, I will be using the vehicle to commute (albeit short distances) and the vehicle will be kept overnight in a different location to that which is currently in.

I believe that I am supposed to let my insurer know about these changes in order for my insurance to remain valid. Is this likely to change the cost of my insurance, and are they likely to ask for a lump sum payment upfront if it does?

stugib

Will vary from insurer to insurer, but it's likely to be an admin fee + change in premium based on new details, which filling in the gaps I'd expect to increase.

If you paid up front then I'd be surprised if your insurer would go to the effort of credit agreements and monthly payments for the difference in the premium, so they'd want it up front.

forgotmyname

There maybe admin charges and adjustments to the premium. but if you do not tell them you may find yourself uninsured if you need to make a claim.

Helene87

I have every intention of telling them, as I don't want to give them any excuse to not pay out, if something should happen.

Is there any chance that the insurance would decrease in cost, as the car will now be kept at home?

pinkteapot

Helene87 wrote: »

I have every intention of telling them, as I don't want to give them any excuse to not pay out, if something should happen.

(General warning to anyone else who may read this thread)

You're risking far more than a non-payout. If you don't tell them about a material change to the policy (eg change of use) and they later find out, they can declare your policy void since inception (as if you'd never had it). In the future, when applying for insurance, you'd have to answer "yes" to "Have you ever had an insurance policy cancelled?" This would thoroughly screw you over in terms of premium increases across all your insurances.

Whenever there's a change you need to tell your insurer ASAP. As above, there'll be a premium increase or decrease, plus an admin charge. Where there is a decrease you may well find that the admin cost wipes it out I'm afraid.

They'll ask for payment over the phone by card of any extra due.

stugib

Helene87 wrote: »

Is there any chance that the insurance would decrease in cost, as the car will now be kept at home?

First time for everything!

Seriously though there's no way of knowing until you call them, but they hold all the aces basically.

Helene87

pinkteapot wrote: »

You're risking far more than a non-payout. If you don't tell them about a material change to the policy (eg change of use) and they later find out, they can declare your policy void since inception (as if you'd never had it). In the future, when applying for insurance, you'd have to answer "yes" to "Have you ever had an insurance policy cancelled?" This would thoroughly screw you over in terms of premium increases across all your insurances.

Jeez, it is so ridiculous that you HAVE to tell them, and there is so much riding on it, yet they are still able to charge you an admin fee. It just seems wrong...but oh well, that is the world for you.

As soon as the changes come into effect, I will get straight on the blower to them.

stugib

Helene87 wrote: »

Jeez, it is so ridiculous that you HAVE to tell them, and there is so much riding on it, yet they are still able to charge you an admin fee. It just seems wrong...but oh well, that is the world for you.

Why? You entered a contract - for a price - with them based on a level of risk. You're changing that risk, and therefore the contract, so they need to know that, and it's something which involves work for them.

See threads passim for this argument anyway.

Skint_yet_Again

Which company are you insured with?


My DS has just made changes to his policy due to a change of job and increase in mileage - his insurer did not charge an admin fee and added the increase to his monthly direct debit spread over the rest of the term


Hes with Churchill