John Lewis insurance charging for non fault car accidents
in Reclaim PPI & other insurance
12 replies 513 views
I insured my car with John Lewis in the belief that they are an honest company who major on customer service. However a few weeks after taking out the policy they charge me £51 for having had 2 non fault accidents.
Other people have reported this procedure with other insurance companies and the argument is always that statistics say if you are involved in any accident, you are a higher risk, irrespective of fault. However, Insurance companies choose the algorithms and statistics that give them an excuse for charging more, with no independent scrutiny. Facts are one thing, but interpretation is another, which brings to mind the quote that says there are lies, damn lies and statistics!
This underhand practice reflects very badly on the reputation of insurers and perhaps most of them don't care, but John Lewis has a reputation of being customer and family friendly and so why do they risk damaging their whole brand image by allowing their insurers (Provident Insurance) to abuse their customers in this way? Perhaps even reputable companies believe insurance is an area where brand image, honesty and ethical behaviour count for nothing? - if so they are wrong, one bad apple can ruin the whole barrel.
Given the chance I would use an ethical and honest insurer every time - just seems hard to find one.
Latest MSE News and Guides
Did you know there's an MSE app?
It's free & available on iOS & AndroidMSE App
Regifting: good idea or not?
Add your two cents to the discussionMSE Forum
Energy Price Guarantee calculator
How much you'll likely pay from AprilMSE Tools
These things are very simple, make full and honest declarations at quote stage and you will see which insurers look most favourably on those that have had a series of non-fault claims. If you "forget" to declare things you are always at risk of significant premium increases for accidental non-disclosure or policy being voided and premiums retained if they deem it to be reckless or intentional non-disclosure.
Yes various risk factors are taken into account when calculating policies which is why you have to declare everything up-front. And although any accidents by anyone get recorded as 'no-fault' that doesn't mean the driver was entirely blameless. There are times when a party takes responsibility, or a decision is made on the balance of probabilities where the non-fault driver was still partially to blame. So a non-fault accident can still add a little (usually negligible) to a policy quotation.
Many have a pattern to their multiple non-fault claims and the reality is over a long enough timeline a counterparty to such a claim will turnout to be uninsured or a hit and run thus becoming a fault claim the next time you park in that dodgy car park but the next person that clips your car doesnt bother stopping.
The only time an insurer comes after you for more money after taking the policy out is if you failed to disclose a material fact or misled the insurer.
As much as in your own case you may have been the innocent party - as mentioned there are some occasions where non-fault is granted, although done so on the balance of probabilities rather than hard facts, as in some accidents hard facts are difficult to come by. Therefore non-fault accidents do get given a very small loading on a premium as a result. Insurance is supposed to cover the many - so there has to be a bit of logic and common-sense applied - and it might not be something you agree on, but that's how insurance works. I'm sure when it comes to renewal, it will have negligible impact on next years premium.