Bike Stolen - Third party Insurance

edited 30 November -1 at 1:00AM in Insurance & Life Assurance
5 replies 816 views
p.maayep.maaye Forumite
5 Posts
edited 30 November -1 at 1:00AM in Insurance & Life Assurance
My G/F's motorbike was stolen from my front garden. She only had Third party insurance cover. She has informed the police and has a crime no.
Two questions, 1) Does she have to inform her insurance company ?
2) if she had to, would it make my future motor insurance more expensive as the theft was at my address?

Thanking you in advance

Replies

  • FutureGirlFutureGirl Forumite
    1.2K Posts
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    She should inform her insurance co, yes. If the thief causes an accident, it may be her insurers that pick up any third party claims.

    She either needs to add another motorbike to her policy, or cancel her policy - so the insurer will need to know.

    If she doesn't inform her insurers, she will need to declare it when looking for quotes elsewhere.

    It won't impact your premiums, no. Only hers.
  • p.maayep.maaye Forumite
    5 Posts
    Thank you for this.
    She will go ahead and cancel the insurance, but , if asked, does she have to say why? She is worried that even though she is not claiming, the mere fact that her bike was stolen, will go against her for future insurance? (sorry I should have been a bit clearer about this)
  • edited 25 March 2018 at 7:45PM
    kelevrazkelevraz Forumite
    192 Posts
    edited 25 March 2018 at 7:45PM
    p.maaye wrote: »
    Thank you for this.
    She will go ahead and cancel the insurance, but , if asked, does she have to say why? She is worried that even though she is not claiming, the mere fact that her bike was stolen, will go against her for future insurance? (sorry I should have been a bit clearer about this)

    Different insurers look at risk's in different ways. Some look at the 'circumstances' around the risk, and other look simply at how much the claim cost the insurer, unfortunately you'll never know this until you've already disclosed (not that you shouldn't be disclosing of course)

    In the case of a theft claim, SOME insurers will look at a 'theft - unrecovered' even with no payout, as a fault claim when loading the policy.

    And some will simply say, no claim made, no need for it to be on the policy, it really is hit and miss when it comes to underwriting criteria.

    My advise though, declare it.. if the thief crashes/dumps the bike and the police find it, they COULD report it to the insurer/last insurer shown on the MID database BEFORE letting you know they have found it
  • p.maayep.maaye Forumite
    5 Posts
    Wow ! So she could get penalized even though she hasn't made a claim.
    However , one way or another she has to cancel the policy, so I guess it's a case of wait and see what they ( the ins co) say.
    Thank you for your input and advice.
    regards
  • kelevrazkelevraz Forumite
    192 Posts
    p.maaye wrote: »
    Wow ! So she could get penalized even though she hasn't made a claim.
    However , one way or another she has to cancel the policy, so I guess it's a case of wait and see what they ( the ins co) say.
    Thank you for your input and advice.
    regards

    Yes i see it all the time in my line of work. It can be quite frustrating for policyholders too.

    Someone has their vehicle stolen, and for whatever reason they do not claim, when we find out about the incident, it honestly doesn't matter why you didn't claim. Our underwriters will only look at the 'risk profile', you've had a vehicle stolen and it was unrecovered, your a higher risk than someone who has never had their vehicle stolen, hence your effectively treated differently even if you have cost a previous insurer no money.

    Even if the vehicle is recovered, some insurers will ask you - how much damage was on the vehicle? how much did it cost you personally to have the vehicle fixed? And your answers to this can again influence whether we decide to treat the incident as a 'fault'

    Let me paint a scenario for you that i see literally every other day.

    1) person has vehicle stolen, they don't make a claim
    2) they take out a new policy, not declaring this 'incident'
    3) they are put on a scheme that says no fault claims allowed in X amount of time
    4) we find out about the claim, ask them why they didn't declare it
    5) they say there was no claim
    6) we point out that they were asked 'that' question, any claims, incidents etc, and they answered no
    7) policy is treated as fraudulent and is voided/cancelled - again, we point out that if you had told us about this incident, we wouldn't have offered you cover at X price
    8) suddenly, that £300 moped you had stolen that you didn't even bother to claim for has cost you a voided policy and your now one of those people who has to say you've had a policy voided - say hello to sky-high premiums and a bunch of insurers that wont touch you


    declare it lol
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