Car Insurance renewal - Penalised for being honest

Beverley_Hillbillies

As a private hire driver I spend at lot of time driving, downside of that being I'm more likely to be involved with incidents / accidents. 

The T&Cs of my current policy, I MUST inform the insurer of any incidents or accidents whether that results in a claim or not.

Over the last 2yrs, I have informed my insurer of incidents, total 6.

None of the 6 incidents has been registered against me, "At fault"-  NO

Each incident 3rd party error.

When notifying my insurer on each separate occasion, it's been recorded as "notification" only

My current insurer hasn't incurred any financial loss, as no claims from either party have been submitted.

However, I'm now at renewal, my current insurer refuses to insure based on I've exceeded the criteria.

I've no idea what the criteria was, but more importantly, why am I now penalised for being honest whilst complying with the T&Cs of the policy, i.e. I must notify them on each occasion regarding an incident / accident.  

I'm now struggling to get private hire insurance due to the amount of notifications listed, the reality is, not one notification is my fault, and all I've done is comply with the T&Cs of the policy.

It seems so unfair.

Maybe being honest doesn't really pay 

dunstonh

However, I'm now at renewal, my current insurer refuses to insure based on I've exceeded the criteria.

I've no idea what the criteria was, but more importantly, why am I now penalised for being honest whilst complying with the T&Cs of the policy, i.e. I must notify them on each occasion regarding an incident / accident.  

That is true of all insurance.  You are not being penalised.  Insurers don't think like that.   They have a risk tolerance and will set limits on their tolerance or that of their reassures.

Maybe being honest doesn't really pay 

You should see the costs involved when caught telling lies

Beverley_Hillbillies

Thanks, still seems unfair

In my case, no looses incurred by my insurer, yet, my premiums increased for being honest.

DullGreyGuy

The problem is that statistically those that have multiple "non-fault" claims are much more likely to have a fault claim compared to someone who's had no incidents. Remember that "fault" in insurance is about if there is a net outlay at the end of the claim and so hit and runs etc are fault. 

As has been said, not informing insurers of incidents risks your policy being voided and claims avoided, a former customer was repaying a six figure sum for doing similar with money taken out of their salary and a charge on their home. As it was predominately injury settlement they cannot even make themselves bankrupt to avoid it.