Named driver has undeclared points.

lesleyh321

Hi all, I hope someone can give me some advice.
My son asked me to put him on my car insurance as a named driver, which I have done. He was driving my car and hit another vehicle. My insurance company are dealing with the third party claim for damages and personal injury, the other driver had a broken leg I think. However I've just found out that my son has points on his licence which he didn't declare. Will my insurance still pay out for the third party claim? What will happen? Will they class it as fraud, I really didn't know, I'm worried sick.

Faith177

It’ll all depend on if he was an acceptable risk with the insurance company had they known

If he was they may just ask you to pay an additional premium if not they will pay the third party but are within their right to then come to you for the money

What were the convictions for and how many points? How old are the convictions

lesleyh321

Hi, it was 3 points for sp30 I think it is. Oct 2016 and expired Oct 2019. He didn't think to tell me because it was expired.

eddddy

If the insurer believes that you deliberately lied (e.g. to get a cheaper premium), that could end badly - they might cancel your policy, and expect you to pay them the full amount of the claim.


If the insurer believes you made a genuine mistake, then it depends...

• If the insurer would have still insured your son, knowing that he got 3 points in 2016 - then you'll probably just have to pay an extra premium, and they'll cover the cost of the claim.

• If the insurer wouldn't have insured your son had they known that he got 3 points in 2016 , that could also end badly. Again they might cancel his cover, abd expect you to pay them the full amount of the claim.

TBH, I don't think most insurers would refuse cover for 3 points 3 years ago - so hopefully you'll be ok. (As long as the insurer doesn't believe that you intentionally lied.)

paddyandstumpy

Points expire after 4 years, not 3. Regardless, they are disclosable for for the period the insurer asks, which tends to be 5 years.

Regarding the claim, the TP claim will be paid regardless of outcome.

However, if the insurer decides they wouldn't have insured your son they may look to you to cover the cost of the claim.

If they would have insured him, at a higher price, they won't ask you for the additional cost, but will proportionally pay any (first party) claim in line with the premium received vs the premium that should have been paid.

To those stating insurers will just ask for the additional premium, this position changed with CIDRA (Consumer Insurance Disclosure and Representations Act) in 2012 and the advice given is incorrect.

csgohan4

As the policy holder you hold responsibility when answering the questions either online or by phone if the named driver had a convictions as well as accidents. Did you ask your son?

Ultimately it will be at the insurers discretion, but you may likely be liable for the insurers costs which is looking like it could be substantial, especially if the TP sues you for costs and they are entitled to

garth549

paddyandstumpy wrote: »

If they would have insured him, at a higher price, they won't ask you for the additional cost, but will proportionally pay any (first party) claim in line with the premium received vs the premium that should have been paid.
.

^^ this is a likely outcome, depending on the insurer and assuming they would have insured him

Eg If they would have charged you a premium of £800 with the correct information but you paid £700 then they will cover 7/8ths of the claim. They'll then pursue you to pay the remaining 1/8th. Just to warn you a wrecked car and a PI claim for a broken leg could easily run into 5 figures.

You might have a sympathetic insurer that will just waive it, cover the whole claim, and only ask for the extra premium. It depends on how significant the difference is between the correct premium and what was paid. Budget insurers are generally far less sympathetic vs an insurer like Aviva for example.

lesleyh321

I did ask my son but he thought it was that long ago it must've been 5 years or more. I don't think he deliberately misled me it wouldn't even cross his mind, he's not that kind of person, I think it was an honest mistake and I just pray my insurers see it that way. I'm with privilege insurance I don't know what kind of company they are, budget or not. This is the first time anything like this has happened to me, I'm an honest person and now I'm making myself ill with worry.