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How to Apply for a New Car Insurance after Previous Policy was VOIDED

deckz
Posts: 29 Forumite

Hi forum members,
I had an insurance policy voided 2 months ago, the full story can be found here (not necessary to read):
https://forums.moneysavingexpert.com/discussion/6462364/insurance-voided-after-accident/p1
I have a lot of questions to ask, I would be very appreciative and thankful if you could provide some thorough assistance in this matter.
I am almost ready to buy a new car and apply for insurance again.
Since the subject has slightly changed, please let me know if I should make a new post for this.
There are a few things I want to get right.
Here are a few reminders of the situation I am in.
My plan when buying the new vehicle:
I would like to ask 5 questions in regard to new insurance. I am currently using CompareTheMarket and GoCompare.
Quite a lot of info, but I would greatly appreciate it if anyone could thoroughly assist me with these questions.
Many thanks.
I had an insurance policy voided 2 months ago, the full story can be found here (not necessary to read):
https://forums.moneysavingexpert.com/discussion/6462364/insurance-voided-after-accident/p1
I have a lot of questions to ask, I would be very appreciative and thankful if you could provide some thorough assistance in this matter.
I am almost ready to buy a new car and apply for insurance again.
Since the subject has slightly changed, please let me know if I should make a new post for this.
There are a few things I want to get right.
Here are a few reminders of the situation I am in.
- Was involved in an accident.
- Insurance policy was voided (I am aware I must state this when applying for new insurance).
- I chose not to pay for the repairs as I could pay for a new car at that cost.
I will be transparent due to a question I will be asking related to this below.
The cost of repair is estimated at £48,000, this is just an estimate as they would need to strip the car further to complete the assessment. Stripping further would require my authorisation since they cannot put the car back together unless it's being fully repaired should I choose NOT to go ahead with the repairs. - I found a buyer who was willing to buy the car in its current state.
My plan when buying the new vehicle:
- I will again most likely use my company to buy the new car.
- The V5C this time will be correctly under my name and address as I plan to take out a personal insurance again.
I would like to ask 5 questions in regard to new insurance. I am currently using CompareTheMarket and GoCompare.
- Since the old policy was voided, do I still keep my old No Claims Discount as if I have never taken out the voided policy?
- I know I must state that I was involved in an accident. However, on GoCompare, there are 8 choices in regard to accidents. I think these two are the most relevant ones, which one is more appropriate?:
A. Incident - no claim made
B. Accident - not settled
Answering B, would open up another question: "What was the total cost of the claim?".
Since the £48,000 is just a preliminary estimate from the repair shop, and furthermore, I have NOT gone ahead with the repairs - would it be more appropriate for me to answer A? - Similarly, on CompareTheMarket, there is a question that asks me "What type of damage was suffered?" I get to choose from:
A. Damage - Amount Known
B. No Damage
C. Unknown
D. Write-Off
I'm sure the answer should either be A or C.
Again, answering A would open up another question: "Do you know the cost of the claim?"
Since the £48,000 is just a preliminary estimate from the repair shop, and furthermore, I have not gone ahead with the repairs - would it be more appropriate for me to answer C? - I have noticed when these Comparison Sites ask me about involvement in accidents and claims, they ask "within the last 5 years".
However, when I asked about voided policies, they simply asked "Have you ever had a policy voided?" without a timeframe.
Because of the wording here, I want to ask if a voided policy would stick with me forever? - If I were to take a business / fleet insurance out with my company (with V5C also in the business' name) and list myself as a driver instead, would that bypass some of the questions asked in points 2, 3 and 4?
Quite a lot of info, but I would greatly appreciate it if anyone could thoroughly assist me with these questions.
Many thanks.
0
Comments
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What you need is the actual amount that was paid out by the insurer (for the recovery etc), not the amount it would have cost had they completed the repair. If you don't know that and can't find out then it is unknown.
For no claims, you will need to contact them to provide you with proof of no-claims. Assuming you protected your no-claims it should be the same as before the policy started.
On the voided / cancelled question, it will depend on the wording of the question, if it has a date limitation on it then you abide by that, if there is not date limitation then yes you have to declare it forever. Different insurers will have different timeframes.
If you go down the commercial route you have to answer the questions about the driver truthfully. That may include declaring their driving history such as accidents and cancelled policies.1 -
- Since the old policy was voided, do I still keep my old No Claims Discount as if I have never taken out the voided policy?
- I know I must state that I was involved in an accident. However, on GoCompare, there are 8 choices in regard to accidents. I think these two are the most relevant ones, which one is more appropriate?:
A. Incident - no claim made
B. Accident - not settled
Answering B, would open up another question: "What was the total cost of the claim?".
Since the £48,000 is just a preliminary estimate from the repair shop, and furthermore, I have NOT gone ahead with the repairs - would it be more appropriate for me to answer A? - Similarly, on CompareTheMarket, there is a question that asks me "What type of damage was suffered?" I get to choose from:
A. Damage - Amount Known
B. No Damage
C. Unknown
D. Write-Off
I'm sure the answer should either be A or C.
Again, answering A would open up another question: "Do you know the cost of the claim?"
Since the £48,000 is just a preliminary estimate from the repair shop, and furthermore, I have not gone ahead with the repairs - would it be more appropriate for me to answer C? - I have noticed when these Comparison Sites ask me about involvement in accidents and claims, they ask "within the last 5 years".
However, when I asked about voided policies, they simply asked "Have you ever had a policy voided?" without a timeframe.
Because of the wording here, I want to ask if a voided policy would stick with me forever? - If I were to take a business / fleet insurance out with my company (with V5C also in the business' name) and list myself as a driver instead, would that bypass some of the questions asked in points 2, 3 and 4?
2. B would be more appropriate, you'd need to check with your insurers if they incurred any claims cost before deciding to void the policy. They may have paid for recovery or storage or may have outsourced the claim to a TPA who'll charge a flat fee for claims handling
3. I'd go with C as it was never repaired so absolute value not known
4. Yes, the majority of insurers ask about void policies for life. Most also want to know about any void policies (at least within the sphere of personal lines general insurance) so it will also be declarable on your home insurance etc
5. Depends... some small business insurance is very much like personal lines and so whilst the company wont have to declare anything as the policyholder you would have to declare it as a listed driver. Other business insurance, particularly for larger businesses, its different because its not practical or realistic for the company to provide the driving license details of the 30,000 employees who potentially could be given use of a pool car.1 - Since the old policy was voided, do I still keep my old No Claims Discount as if I have never taken out the voided policy?
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Really Appreciate the help guys, has helped me a lot!400ixl said:What you need is the actual amount that was paid out by the insurer (for the recovery etc), not the amount it would have cost had they completed the repair. If you don't know that and can't find out then it is unknown.
For no claims, you will need to contact them to provide you with proof of no-claims. Assuming you protected your no-claims it should be the same as before the policy started.
On the voided / cancelled question, it will depend on the wording of the question, if it has a date limitation on it then you abide by that, if there is not date limitation then yes you have to declare it forever. Different insurers will have different timeframes.
If you go down the commercial route you have to answer the questions about the driver truthfully. That may include declaring their driving history such as accidents and cancelled policies.
Apologies, I am not too well versed in insurance, how would I know if my NCD is protected?
0 -
DullGreyGuy said:
- Since the old policy was voided, do I still keep my old No Claims Discount as if I have never taken out the voided policy?
- I know I must state that I was involved in an accident. However, on GoCompare, there are 8 choices in regard to accidents. I think these two are the most relevant ones, which one is more appropriate?:
A. Incident - no claim made
B. Accident - not settled
Answering B, would open up another question: "What was the total cost of the claim?".
Since the £48,000 is just a preliminary estimate from the repair shop, and furthermore, I have NOT gone ahead with the repairs - would it be more appropriate for me to answer A? - Similarly, on CompareTheMarket, there is a question that asks me "What type of damage was suffered?" I get to choose from:
A. Damage - Amount Known
B. No Damage
C. Unknown
D. Write-Off
I'm sure the answer should either be A or C.
Again, answering A would open up another question: "Do you know the cost of the claim?"
Since the £48,000 is just a preliminary estimate from the repair shop, and furthermore, I have not gone ahead with the repairs - would it be more appropriate for me to answer C? - I have noticed when these Comparison Sites ask me about involvement in accidents and claims, they ask "within the last 5 years".
However, when I asked about voided policies, they simply asked "Have you ever had a policy voided?" without a timeframe.
Because of the wording here, I want to ask if a voided policy would stick with me forever? - If I were to take a business / fleet insurance out with my company (with V5C also in the business' name) and list myself as a driver instead, would that bypass some of the questions asked in points 2, 3 and 4?
2. B would be more appropriate, you'd need to check with your insurers if they incurred any claims cost before deciding to void the policy. They may have paid for recovery or storage or may have outsourced the claim to a TPA who'll charge a flat fee for claims handling
3. I'd go with C as it was never repaired so absolute value not known
4. Yes, the majority of insurers ask about void policies for life. Most also want to know about any void policies (at least within the sphere of personal lines general insurance) so it will also be declarable on your home insurance etc
5. Depends... some small business insurance is very much like personal lines and so whilst the company wont have to declare anything as the policyholder you would have to declare it as a listed driver. Other business insurance, particularly for larger businesses, its different because its not practical or realistic for the company to provide the driving license details of the 30,000 employees who potentially could be given use of a pool car.
1. It was voided, unfortunately. I asked an insurer over the phone in regards to NCD, he confidently said my NCD would not be affected.
2. Okay, for GoCompare, I will select "B (Accident - not settled)" and will attempt to get the information from the insurance, they are really hard to get a hold of. If I am unable to get the information, what shall I put down?
There is an extra question which is "Did the claim occur on your most recent policy?", even though the claim didn't go through, I'd guess I still have to select "Yes"?
3. Similarly on CompareTheMarket, after selecting "C (Unknown)", There are two further yes-no questions.
First is "Was this claim made against your insurance policy?", I assume that should be a yes?
And "Was the no-claims discount affected?", this should be a no?
4. I feel slightly hard done by. I know I was complacent, but to have something imposed on me for life over a genuine mistake is hard to swallow.
5. I think I will go with personal insurance in the end, it seems the most straightforward option and it's difficult to find fleet insurance for one car.
6. Back to insurance comparison questions, I keep my car in a locked underground parking for my block of flats which requires a fob to enter, which one is more appropriate?
GoCompare:
Locked Garage, Residential Car Park, Secure Car Park, Carport, Unsecure Car Park, Unlocked Car Park
CompareTheMarket:
Locked Garage, Unlocked Garage, Locked Compound, Public Car Park, Private Property
0 - Since the old policy was voided, do I still keep my old No Claims Discount as if I have never taken out the voided policy?
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4) I somewhat agree but changing it would be a pain... for criminal records you have the rehabilitation of offenders which sets timeframes after which your past is left behind for most things and only the most serious offences are never spent. You could argue something similar should apply but it'd be highly complex to set up and create just another thing someone can appeal was unfair (as a guilty convict can appeal their sentence).
6) What is more important is how it translates when you click through to buy from a particular insurer/broker. For the two sites mentioned I'd say Residential Car Park and Private Property but there is an argument for the Secure/Locked options.
When you click through you may find the only options are the traditional 3 of Garage, Drive or Road and the above dozen or so have to be converted into one of the three. You ultimately buy based on the final declaration not what you put into the aggregator1 -
I would have thought going to a traditional local broker would be a better option as the comparison sites make a lot of assumptions and are really for those that have a squeaky clean history.
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molerat said:I would have thought going to a traditional local broker would be a better option as the comparison sites make a lot of assumptions and are really for those that have a squeaky clean history.
There is certainly no harm in speaking to a traditional broker but the reason why there are far fewer than there used to be is that speaking to people on the phone then calling around underwriters and trying to plead a case adds a fair amount of operational cost. What you potential save in risk premium when the 10th underwriter agrees to only give a 5% loading for the previous void policy could easily be offset by the increased Ops cost. You only pay brokers if you buy from them so no harm in asking.1
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