Insurance Demand after Ban and Accident

[AL...Ease]

One of my colleagues got a 14 day ban earlier this year after doing 105 on a motorway. He thought he wouldn't have to tell his insurance company until he renewed.

He had an accident last week, which was probably his fault, maybe 50/50. His insurance company asked if he had any convictions and he told them. Now they're asking for ~£800 for the increase in insurance policy price due to the ban (plus his excess).

I guess his insurance is probably >£2k/year as it is because he is young and drives a 320d.

Is that normal procedure, or are the insurance company taking him for a ride?

[eybic]

He is duty bound to tell them as soon as he gets any endorsements so yes it's normal practice.

[Rick101]

Hmm, I thought endorsements only needed advising at the commencement of a new contract i.e on renewal.

[eybic]

No, I'm sure the t's & c's will state you have to tell them if there are any changes.

[redddraggon]

eybic said:

He is duty bound to tell them as soon as he gets any endorsements so yes it's normal practice.

This is what Admiral say:

Tell us at RENEWAL about...
Any motoring convictions - that's right, if you or any of your named drivers receive any fixed penalties, motoring convictions or disqualifications during your policy term you will need to let us know when you renew. Make sure you tell us the DVLA conviction code. You don't need to tell us about parking fines or convictions which aren't related to motoring, but you do need to tell us if you attend a driver awareness course.

[AL...Ease]

Rick101 said:

Hmm, I thought endorsements only needed advising at the commencement of a new contract i.e on renewal.

That's what my insurance company told me; I got my first points a couple of years ago around a month into a renewal. I called my broker and he said to just let them know when I renew...

[eybic]

redddraggon said:

This is what Admiral say:

Tell us at RENEWAL about...
Any motoring convictions - that's right, if you or any of your named drivers receive any fixed penalties, motoring convictions or disqualifications during your policy term you will need to let us know when you renew. Make sure you tell us the DVLA conviction code. You don't need to tell us about parking fines or convictions which aren't related to motoring, but you do need to tell us if you attend a driver awareness course.

They also say:
Your driving licence status changes - whether it's you or your named driver, we'll need to know if there's a change to your licence in case you get pulled over by police and they need to check your details against the Motor Insurance Database. If you've changed your name but not told us it could land you in a sticky situation. You'd obviously need to let us know if you or any named drivers have had your licence revoked, suspended or if you've been banned from driving.

[MitchT]

redddraggon said:

... but you do need to tell us if you attend a driver awareness course.

So, if you attend a speed awareness course you don't need to tell them!

[redddraggon]

eybic said:

They also say:
Your driving licence status changes - whether it's you or your named driver, we'll need to know if there's a change to your licence in case you get pulled over by police and they need to check your details against the Motor Insurance Database. If you've changed your name but not told us it could land you in a sticky situation. You'd obviously need to let us know if you or any named drivers have had your licence revoked, suspended or if you've been banned from driving.

Yeh, you are right, I was thinking more of the simple 3 point type endorsements.

[eybic]

redddraggon said:

Yeh, you are right, I was thinking more of the simple 3 point type endorsements.

In all honesty, so was I but it seems with a ban he definitely should have told them.

[Durzel]

When I recently got a SP30 I told the insurance company once it had been confirmed, and they basically said "thanks, but you don't need to tell us until renewal". Better to ask and be told that it's not necessary to tell them (yet), than to assume otherwise.

[Steve Benson]

MitchT said:

redddraggon said:

... but you do need to tell us if you attend a driver awareness course.

So, if you attend a speed awareness course you don't need to tell them!

You do if they say you have to. They can state any condition of insurance they want, it's their contract and you decide if you want to enter into it or not.

It isn't the law to declare a SAC but individual companies can demand what they want.

[SS2.]

AL...Ease said:

One of my colleagues got a 14 day ban earlier this year after doing 105 on a motorway. He thought he wouldn't have to tell his insurance company until he renewed.

<..snip..>

Is that normal procedure, or are the insurance company taking him for a ride?

What he needed to declare to his insurers and when he needed to declare it would be detailed in his policy documents.

Those documents would also explain what actions his insurers were entitled to take if the policy holder failed to disclose in accordance with the insurers requirements.

[Boydie88]

anonymous said:

[redacted]

This. I'd be thankful the insurance co. didn't just cancel the policy.

[AL...Ease]

SS2. said:

What he needed to declare to his insurers and when he needed to declare it would be detailed in his policy documents.

Those documents would also explain what actions his insurers were entitled to take if the policy holder failed to disclose in accordance with the insurers requirements.

I've looked through, but can't see any stipulations in there other than "you must inform us in the event of an accident".

Thanks for the help all!

[SS2.]

Who is he insured with ?

[speedking31]

e.g. highway Insurance page 15.

Highway said:

CHANGES TO YOUR DETAILS
You must tell your insurance adviser as soon as possible if any of your details on your proposal form or statement of fact change including:
• Details of any motoring convictions, fixed penalty offences or licence endorsements for any person who may drive the vehicle.

[Trax]

AL...Ease said:

I've looked through, but can't see any stipulations in there other than "you must inform us in the event of an accident".

Thanks for the help all!

Only his policy booklet or T&C's can say if he has to tell the. Speeding offences usually not, but it may have something about bans. A complaint to the insurer will prompt them to give what their reasons are for beleaving he had to tell them, there is no fixed law that he should.

If they cannot say how they made him aware he had to, then he wont have to pay.

[elanfan]

If the policy has been renewed since the ban they are entitled to ask for the premium they would have charged. This being the case your friend is very lucky they didn't void the insurance, refuse to pay his damage and sue him for any third party costs. If it's mid term they have to suck it up until renewal.

[AL...Ease]

He's insured with Diamond (meant to be for women). I've just checked on their website and they have the full policy document which states:

1
Please tell us before
?
If you are going to take your car abroad and think you will exceed the 90 days cover in this period of insurance
(see Section 6 going abroad)
2
Please tell us immediately
?

If you or any driver named on your policy, have been disqualified from driving, yourentitlement to drive has been suspended or withdrawn (revoked) or your driving licence status has changed, for example if you pass your driving test and your licence changes from a provisional licence to a full licence
3
Please tell us when you renew your insuranceOf any motoring offences including fixed penalties, convictions, of driver awareness courses
you or any driver on your policy had during the year, or any pending prosecutions. You will need to tell us of the DVLA offence code if applicable.


So, yeah, he should have told them; Lesson learned!