Notifying Ins co. of points

[jam1et]

A friend of mine has just recieved 3 points for speeding. The police said he did not have to declare it to his insurance company until he renews his policy. Is this correct? I always though you had to inform the insurance company right away of any endorsements. I realise that 3 points may not make any difference to the premium anyway, but I'm worried that it may invalidate his insurance if he doesnt declare these points. Whats the score, were the police correct?

[JohnL]

I'd go for declaring straight away. It probably won't make any difference to the premium, but if he doesn't they may use that as an excuse to weasel out of paying up if the crunch comes.

[M@H]

I'd declare it too... they can't change your premium as its an annual contract, however as they state you should "inform us of any changes to your circumstances", they should really be told.

Cheers,
Matt.

[mcflurry]

M@H said:

they can't change your premium as its an annual contract

And who is gonna stop them?

(Seriously Direct Line didn't change mine when I declared 3 points)

[M@H]

mcflurry said:

M@H said: they can't change your premium as its an annual contract And who is gonna stop them?

They offer you 12 months cover, you pay the premium and they give you an insurance document... . All aspects of a "contract" are in place (Offer, consideration, acceptance from memory). Just becuase you tell them of something like this, they can't revoke the contract unless they have a specific clause in it allowing them to do so.

As far as I am aware they have a clause that says if you don't inform them of changes in your circumstances they have the right to cancel the insurance policy, but I've never heard of a clause that states if you get 3 points they have the right to cancel the contract, that would be nuts

Cheers
Matt.


>> Edited by M@H on Wednesday 24th March 11:58

[jwo]

i told mine straight away - made no difference to policy!

Norwich Union think only having 3pts is an achievement!! I say careless!!

[griffter]

M@H said:

mcflurry said: M@H said: they can't change your premium as its an annual contract And who is gonna stop them? They offer you 12 months cover, you pay the premium and they give you an insurance document... . All aspects of a "contract" are in place (Offer, consideration, acceptance from memory). Just becuase you tell them of something like this, they can't revoke the contract unless they have a specific clause in it allowing them to do so. As far as I am aware they have a clause that says if you don't inform them of changes in your circumstances they have the right to cancel the insurance policy, but I've never heard of a clause that states if you get 3 points they have the right to cancel the contract, that would be nuts Cheers Matt. >> Edited by M@H on Wednesday 24th March 11:58

Yeah, but they'll increase the premium anyway. Otherwise I'd buy a 1.1 Fiesta and insure it on day one. Then the next day I'd p/x it for a Griff, and 'swap the insurance over'. Same with postcodes. You change the terms of the contract, the premiumn changes. What annoys me is that you don't get a partial refund on your birthday...

I once got charged an extra £275 for being a 'student' after being 'unemployed' ie after having passed my A-levels!

[Davel]

Most insurers no longer treat a speeding conviction as a major issue any more, nor do they usually up your premium.

But if you do try to make a claim and you haven't told them of the conviction, you might just give them the get-out that they need.

Don't risk it - tell them...

[wik]

It should state on the policy. My old admiral one did.
I didnt have to declare any until renewall.

[swilly]

If your mate has an accident in similar circumstances to that which he was awarded the 3 points, the insurance company may refuse to pay out all, or a portion due to the fact the risk your mate represents, and which the policy was based on had changed.

OTOH if he has an unrelated accident then they should pay out.

I say this having begun a previous insurance policy with no points, no accidents and no claims only to have a no-fault incident 9 months later that resulted in my Chimaera being written off to the tune of £18K.

In the 9 months between policy start and incident I accumulated 6 points and 2x £60 associated fines, a 21 day ban and £300 associated fine all for speeding

I informed the insurance company of the state of my licence, and they paid out without questions.

[M@H]

swilly said:

In the 9 months between policy start and incident I accumulated 6 points and 2x £60 associated fines, a 21 day ban and £300 associated fine all for speeding

..good effort !!

[loaf]

jam1et said:

A friend of mine has just recieved 3 points for speeding. The police said he did not have to declare it to his insurance company until he renews his policy. Is this correct? I always though you had to inform the insurance company right away of any endorsements. I realise that 3 points may not make any difference to the premium anyway, but I'm worried that it may invalidate his insurance if he doesnt declare these points. Whats the score, were the police correct?

All depends on the wording of the contract. If it says in the policy wording 'you must disclose immediately any material changes to the risk' or words to that effect he must tell them straightaway. If nothing like that appears in the wording then he's not obliged to disclose until renewal.

[kevinday]

griffter said:

Yeah, but they'll increase the premium anyway. Otherwise I'd buy a 1.1 Fiesta and insure it on day one. Then the next day I'd p/x it for a Griff, and 'swap the insurance over'. Same with postcodes. You change the terms of the contract, the premiumn changes. What annoys me is that you don't get a partial refund on your birthday... I once got charged an extra £275 for being a 'student' after being 'unemployed' ie after having passed my A-levels!

In contract terms changing the car is a change of 'condition', i.e. a major factor in the policy, hence the company will be able to change the premium, in effect they cancel the existing policy and create a new one.

The addition of penalty points to your licence may be seen as a change to a 'warranty' of the policy, but many insurance companies do not even make it that during the life of a policy. With a change of 'warranty' the company may be able to repudiate the contract (i.e. cancel the policy) if you fail to tell them and it is required to do so as one of the terms of the policy.