Not declaring points on insurance
Discussion
If I fail to declare points when purchasing a new car insurance policy, what are the likely outcomes should I have to claim, should a 3rd party have to claim, and if no claims are brought?
I hear conflicting opinions between the policy being invalid, and the difference in premium between that paid and the full premium had the points been declared.
The second option is obviously preferable. Should I ding my shed badly I'll be happy to write it off, as its only £1k of car, so I'm only really insuring myself against hitting others. Obviously keeping the cash available to make up the difference between premiums should it be required, am I likely to get a fraud conviction for this? Many people seem to be at it, and I suppose the legality is as much of a query as the likelihood of prosecution, civil or criminal, and any possible/likely penalties.
I'm a student so a £1400 difference is HUUUUUUUUUGE!
sorry for posting in the wrong section(PLS move to SPL mod!!) .
New users cannot use the SPL section, and I wanted a new account for this post as my cars are easily traceable...
I hear conflicting opinions between the policy being invalid, and the difference in premium between that paid and the full premium had the points been declared.
The second option is obviously preferable. Should I ding my shed badly I'll be happy to write it off, as its only £1k of car, so I'm only really insuring myself against hitting others. Obviously keeping the cash available to make up the difference between premiums should it be required, am I likely to get a fraud conviction for this? Many people seem to be at it, and I suppose the legality is as much of a query as the likelihood of prosecution, civil or criminal, and any possible/likely penalties.
I'm a student so a £1400 difference is HUUUUUUUUUGE!
sorry for posting in the wrong section(PLS move to SPL mod!!) .
New users cannot use the SPL section, and I wanted a new account for this post as my cars are easily traceable...
Edited by splifficzech on Wednesday 21st December 23:23
Edited by splifficzech on Wednesday 21st December 23:27
Why not just not insure it at all, even further money saving.
If you are going to even consider such things its best not to post about it on the internet.
A few years ago a friend didn't declare his points and when he made a claim he was asked to pay the difference it would of been to insure him with the points.
However the world of insurance has changed.
I do feel for you and £1400 is a lot, my advice would be to get to a car that is much cheaper to insure, i.e. a classic on a classic policy.
If you are going to even consider such things its best not to post about it on the internet.
A few years ago a friend didn't declare his points and when he made a claim he was asked to pay the difference it would of been to insure him with the points.
However the world of insurance has changed.
I do feel for you and £1400 is a lot, my advice would be to get to a car that is much cheaper to insure, i.e. a classic on a classic policy.
sorry I don't feel your pain.....I had 9 points when I was 17... I paid the extra insurance and drove slowly and carefully despite have some serious performance cars at the time for my age.
if you cant afford it you need to downgrade your car to one that you can afford.
From a legal point I believe the insurance company isn't obligated to pay out to 3rd parties as they can declare your insurance non void (as it is) and its your responsibility to have VALID insurance on your car NOT theirs.
if you cant afford it you need to downgrade your car to one that you can afford.
From a legal point I believe the insurance company isn't obligated to pay out to 3rd parties as they can declare your insurance non void (as it is) and its your responsibility to have VALID insurance on your car NOT theirs.
Lie about anything to insurers and you'll be uninsured if they find out and you need to make a claim. This goes for undeclared modifications, personal details, address etc. Have you shopped around? I had to declare 6 points to my insurers a few years ago and they didn't put my quoted renewal up at all. Even my mum's been done for speeding twice in the last couple of years.
Insurance fraud? Spiffing! Get caught and have it proven you did it on purpose, and you have a potential criminal record and a whole heap of fun EVER getting insured on the road for the following 5-10 years. For some strange reason, insurers get nervous insuring those convicted of insurance fraud.
If you can't afford to drive legally, you can't afford to drive.
If you can't afford to drive legally, you can't afford to drive.
avhbi said:
So you got points for?....
No matter, you did wrong and this is your punishment. So take it like a man and pay up and learn from the admittedly crappy lesson.
^^^This, also:No matter, you did wrong and this is your punishment. So take it like a man and pay up and learn from the admittedly crappy lesson.
Get a cheap car 3rd party or use public transport/bike/taxi like everyone else who can't afford a car. Do NOT lie to insurers -your morals seem rather low if you have to ask this question I think, but then your name is a bit of a give away re attitudes too. Shape up!
Scelto said:
hornetrider said:
The type of points are key. Do tell.
You mean the insurers will take a different view in the event of a claim (which is what the question is about) according to how the points were earned?Seems unlikely...
Mere speeding, and they would have insured anyway, you may get away with just the difference in premium. Had they not insured, it would be voidance.
All this assumes they don't consider the mispresentation to be deliberate or reckless. So you convince them it was an oversight, not fraudulent.
If fraud is suspected, then they can void the policy, and keep the premium too. The chances of then getting you a criminal conviction for fraud, that is very unlikely, but possible.
Points are just too easy to check, so you WILL get found out if you have to claim.
Will all be placed in statute in the Consumer Insurance (Disclosure and Representations) Act sometime.
At it's worst it will be something like....Crash - your fault - serious injury. Inform insurer. Insurer voids policy. Third Party takes YOU to court for massive damages. They win. You are now liable for what could be millions. Insurer steps in. Phew. Insurer takes you to court for what they had to pay. Oh dear. This will take a long time, and you will seriously wonder if it was the worth the grand to go through this.
Unlikely, but absolutely possible.
Edited by Noger on Thursday 22 December 10:12
Great username too - Spliff! 
Man up and pay the extra! Annoys me that some people say they can't afford the extra insurance as they've got points etc, well it was your fault so man up and pay the fine! I bet you'll spend more on 'modding' and 'go faster' extras in that year than you would on insurance.
Man up!
Man up and pay the extra! Annoys me that some people say they can't afford the extra insurance as they've got points etc, well it was your fault so man up and pay the fine! I bet you'll spend more on 'modding' and 'go faster' extras in that year than you would on insurance.
Man up!
You also have to consider the long term implications. If you need to make a claim and they discover you didn't declare the points, you could be refused insurance in the future. All insurance companies talk to each other and you could pay a higher premium for a long time if they discover you deliberately hid the facts. (The fact that you know the difference between the premium costs suggests that you have been on a comparison web site. In my suspicious world, I beleive that insurance companies could access this data so could prove you knew about the points and deliberately didn't declare them).
My advice (FWIW) pay up now and it will be cheaper in the long run.
My advice (FWIW) pay up now and it will be cheaper in the long run.
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