Motor insurance

Tver

A friend tells me that he has three speeding convictions and that he has not told his insurers as they will heavily increase his premium.

I have told him he is MAD, since if he is involved in an accident they will not pay out, since he had DELIBERATELY given them wrong information.

He says that the Data Protection Act prohibits the DVLA from passing on his personal data to insurers.

I am sure he is talking hokum, but one thing gives his claim some degree of plausibility: the fact that one never hears of insurers refusing to pay out on the grounds of withheld info. Why is that? Could it be that he is right?

And if he is NOT right, and the info is freely available insurance companies, why don't they automatically do an electronic check on each driver's licence, as soon as he/she registers with them as a customer?

maclean2

Hi - as a condition before dealing with a claim many insurers will ask to see your licence and/or ask you to sign an authority for DVLA to release details of all your driving convictions.

Your mate could end up in big time do do !

wazza

when i had an accident my company wanted to see my driving license. If god forbid he is involved in an accident not only will the insurance company refuse to pay out but he will be prosecuted for driving while uninsured by the police if they are involved

mrbadexample

In my experience, insurers will do anything they can to wriggle out of paying. I reckon he's on pretty thin ice here.

Bossyboots

Tver you are spot on as is mrbadexample.

For the sake of clarity, I can tell you that insurance DO refuse to pay out if you have not disclosed material facts. I know someone who has been through this and it was not a pleasant experience. Fortunately he did not injure anyone but it cost him a lot of money for vehicle repairs and he no longer drives because those who will take a risk with him want so much money it is not a viable proposition particularly as he is still paying back the loan he took out to cover the costs of the accident.

I should perhaps also say he was then done for driving without due care and having no insurance.

The insurance companies take a much dimmer view of you not disclosing convictions than they do of not disclosing accidents in my experience.

BobToo

The insurance companies don't check (although some do ask to see a licence) on registration because fraudulent policies are free money for them. The customer pays a premium but isn't insured. No risk and it's the customer who's cheated himself, would you turn down business like that?

MarkyMarkD

Absolutely right, Bob. There's no need for insurers to check anything at the underwriting stage as they don't care whether you are lying or not. If you are lying, they won't pay out.

It's important to note that this applies if you are convicted during the term of your insurance ... people often think they don't need to mention convictions until renewal. That is WRONG. To quote my wife's policy:

You must tell us soon as possible about any changes which affect your insurance and which occurred since this insurance started or was last renewed ... If you fail to inform us about relevant changes then your insurance may not cover you.