I know this is totally illegal, but where would I stand IF…

Firstly, I have had an accident in my parents car, whilst a named driver on their insurance, do I sill have to declare it my seeking my own insurance, as the parents have already lost their NCB and it seems like we are being ‘punished’ twice.

Secondly, where would I stand if I did not declare the 3 points I have on my licence for speeding when applying for insurance?

If I was pulled up my the police they would want to see my licence details and insurance certificate, therefore not my policy details to see that I have not declared, but if I had to claim on my insurance for an accident would they have access to my licence details to find out that I had points of which were not declared.

Any advice welcomed.

The attempts of a poor student…

1. Yes, you would have to declare this as most companys will as you if you "have had any accidents, claims or losses" this is to try and rate the policy according to your risk as an insured driver.

2. Yes, as above, it's to rate your risk as a driver

worst case, in a claim situation your company could invalidate your insurance and refuse to pay out for your claim ( they would however have to settle any 3rd party claim however)

Is it worth it?

I am not sure it is a good idea to be untruthful as your Policy Cover would be invalidated due to non-disclosure. In any event I don't think that the incident and speeding would make mega difference to your own insurance costs, also shop around, there are companies who will specialise in people with poor driving histories (I have heard of worse!) and also students. Whatever, I wouldn't recommend saving a couple of quid for something that will not be valid and ultimately will cost you more serious points on your licence and a fine which will make it even harder to get insurance in future !!

As it is your parents policy, it would be them that carry the risk of who is named on the policy. If you claim whilst a named driver, it is their NCD that is affected and them who would need to declare the claim. If you were to take a policy out in your own name, I would still mention it just to cover your arse, but most companies wont take it into account.

In regards to the speeding conviction, you have a duty of disclosure to tell the company about anything that could affect the policy, this includes motoring convictions in the last 5 years. Although an SP30 is only a minor conviction, its still something that can affect the premium and sometimes also the XS's. If it came to a claim, the insurer COULD repudiate based on non-disclosure, but usually they'll ask you to pay the additional premium for adding the conviction to the policy before they pursue the claim.

When you claim they have access to a database (the name of which escapes me now but i'm sure one of the other gurus here will tell you) which includes your licence details, plus they sometimes ask you to send your licence so you'd be instantly rumbled.

As stated below, always be upfront and open with your insurer as if they find you've been telling porkys, you'll always come of second best.

I may be wrong here as I haven't been involved with Motor Insurance for a long time but I did think that it wasn't just claims information that was required and it was more to do with a drivers history and any accidents and incidents had to be divulged. i.e. if you had half a dozen accidents in one year and claimed under a policy in someone elses name or a company then would this fact not affect an insurers view of you as a risk ? Would it be right that this driver be charged/rated the same as someone with a truly claim/incident free record ? However, if not then answer the questions truthfully and you should be OK. My admitidly biased view is that people should pay based on the truth as failure to do this pushes up everybody elses premiums including mine, as do the 1000s of uninsured drivers in this country .... but that is another story !! grrrrrr !!

Rant over

Ultimately the answer is in the scripts that are read out and usually ignored when taking out a motor insurance policy that is you have a responsibility to disclose 'material facts' and failure to do so could invalidate your policy.

The fact that your parents have lost their NCB is irrelevant, your parents insurer has just paid out XXXX amount of pounds for a claim therefore they are entitled to levy an additional premium and also to reduce the NCB, i wouldnt describe it as a 'punishment' as such.

An insurer will ask you personally if you have had any claims/accidents, they are using this to assess the potential risk you pose. Its worth bearing in mind that information can be shared among insurance companies to prevent fraud and your previous claim may be listed on the Motor Insurance Anti-Fraud and Theft Register.

Purposeful non-disclosure is more than likely to leave you out of pocket and possibly subject to an investigation for fraud. As for the three points this is unlikely to make a huge difference (in fact with my insurance they have made no difference) so you should disclose this

If you are looking to save money then the best advice is to simply shop around!

An insurance company do not need an open invitation to throw out a claim therefore it is in your best interests to be as honest as possible.

I would suggest if you want paid by the insurance company or for them to pay a third party's claim should something go wrong you are honest in all dealings with them!

Insurance companies can and do log underwriting fraud on various databases which may and often does effect any attempts to obtain credit (including loans and mortgages) in the future!

I know this is totally illegal, but where would I stand IF…

 

Firstly, I have had an accident in my parents car, whilst a named driver on their insurance, do I sill have to declare it my seeking my own insurance, as the parents have already lost their NCB and it seems like we are being ‘punished’ twice.

 

Secondly, where would I stand if I did not declare the 3 points I have on my licence for speeding when applying for insurance?

 

If I was pulled up my the police they would want to see my licence details and insurance certificate, therefore not my policy details to see that I have not declared, but if I had to claim on my insurance for an accident would they have access to my licence details to find out that I had points of which were not declared.

 

Any advice welcomed.

 

The attempts of a poor student…

All of the responses here give you some very good advice.

Under the maxim of utmost good faith, you must divulge to the insurer any information that may affect your insurance. Most claims now are registered on CUE (Claims Underwriting Exchange) and non-disclosed previous accidents will often be found out this way. Even if it is not it is when it comes down to a claim that your insurers prove their worth. For a (presumably) young driver, with a non-disclosed conviction and previous accident should an accident happen then history will almost certainly be found out, by way of DVLA licence histories and various accident databases. Consequences are numerous and may be as little as an additional premium (if they would have insured you had they known of the non-disc); or agreeing only to pay a percentage of the claim (the rest being paid by you); or even total repudiation, in which case they would pay the cost of the claim - which can be staggering amounts - and then seek recompense from you.

Best to be honest - and drive carefully!!