Car Insurance - Declaring Theft for Renewal when not Claiming

[BlueAngel1]

My car was stolen recently and my insurance company say I have a three year limit to make a claim.

 

The theft will inevitably lead to an increase in the cost of insurance so I was thinking of buying a new car first, insuring it and then making a claim.

 

Am I right in thinking that I would only need to reveal the theft if I had already made a claim at the time of insuring the new car?

 

When insurance companies want to know any claims/incidents from the past five years do they want to know the date of the incident or the date of the claim?

 

Given I have documentation from my current insurers that I have three years no claims would the new insurer become aware that I had subsequently claimed off my old insurers and then know that it should be stepped back by two years. I understand I would be obliged to tell them about the claim when next renewing but would I also be obliged to tell them that I had claimed after joining the new insurer and thus that I should lose two years no claims?

 

Also if I delayed claiming for three years would I avoid a premium increase for the next three years and would I only have to pay the increase for the last two years of the five year period?

Or by that time I could have made it to 5 years no claims - would it then be possible to protect my no claims to avoid losing it - even though the theft took place before I had 5 years protected.

 

Hope this makes sense.

 

The car was only worth about £2K – I’m wondering if it is worth claimingat all, given insurance companies recoup their payouts by upping theirpremiums.

 

Are premium increases based on the amount paid out or would a car theftlead to the same increase regardless of the value of the car?

[Northernpug]

The fact that you have had a car stolen is a material fact that you should advise insurers of when asking for a quote whether you have made a claim or not.

 

From what you say, it appears that you have already notified insurers of the loss so it will probably be recorded as a claim anyway. What they are saying is, now you have reported it, you have up to 3 years to submit a claim for the amount of your loss.

 

Failure to declare your loss could invalidate any new policy you take out rendering you uninsured in the event of any future loss.

[BlueAngel1]

Wwould I have to tell a new insurer when the claim was paid out - so that they could deduct two years no claims?

[Northernpug]

Where there is no dispute over liability its the date that you notify the loss that affects your NCB, not the date a payment is made.

 

If you have had a loss which means that you are no longer entitled to the NCB, then you shouldn't try and deceive insurers into thinking that you are entitled to something that you aren't.

 

I can understand that you are trying to avoid paying an increased premium following your loss but I can't think of any legitimate way you can do it given the circumstances. If new insurers find out that you have claimed NCB when you were not entitled to it, at best they will ask for the additional premium but more likely they will void the policy. It could render you uninsured which would make you personally liable for any future loss and possibly render you open to prosecution for driving a vehicle whilst being uninsured.

[BlueAngel1]

According to my own insurers though I still have 3 years NCB.

I will not lose 2 years until I make a claim or until there is a payout.

 

That suggests I could legitimately buy and reinsure based on 3 years NCB.

 

The question really is if I then did claim and obtain a payout would I be obliged to inform the new insurers that I needed to have two years NCB removed?

[Northernpug]

Is the proof of NCB dated before or after you reported the loss?

 

Something doesn't seem right here as I don't know where the "3 years to make a claim" comes from. Its not something I've heard of before (and I worked in the insurance industry for 25 years). Usually you have to report a loss as soon as reasonably possible in order for it to be considered as a claim.

 

Do you have anything in writing confirming you have 3 years to make a claim? Have the insurers actually recorded the loss?

 

If they are still allowing the NCB then it would appear that they haven't acknowledged any loss and unless you have something in writing from them, it would be dubious if they would entertain a claim a year or so later.

 

The fact is you have had a theft of an insured vehicle. As a result of the theft, your NCB entitlement is affected and any renewal should be based on the NCB you are now entitled to.

[BlueAngel1]

The NCB proof is dated after I reported the loss.

I have the 3 year limit confirmation in an email.

I've reported the theft and have correspondence from the insurer proving this.

The fact is you have had a theft of an insured vehicle. As a result of the theft, your NCB entitlement is affected and any renewal should be based on the NCB you are now entitled to.

But according to the insurer themselves my NCB is intact until I make a claim.

Another odd thing was the theft occurred a few days before the completion of the third year.

So you would imagine it should only be two years NCB that I have.

Depending on who I talked to at the insurer they said referred to it as being either two years or three years NCB

However now I have it in writing that it is three.

Sounds like incompetence?

Now I have it in writing presumably they can't take it away?

[Conniff]

I think I would tell them 'claim pending'.

[oddjobbob]

Just declare EVERYTHING yo yuor new insurance company.

 

Otherwise you will indeed be able to renew for maybe £100 less than if you didn't.

 

But they wont pay you if you need them to.

[unclebulgaria67]

As soon as you register a claim with most Insurers, the claim is pending with a fault status attached, which will automatically reduce the NCD by 2 years. It is only if the Insurers then make a full recovery, that the NCD will be reinstated. Sometimes if you make a claim during the renewal period, the Insurers will issue wrong NCD years proof, as the policy will go into renewal mode about 5 weeks ahead of renewal. The renewal is then sent with the wrong NCD showing. If you phoned new Insurers for a quote for a new policy, they should be switched on enough to realise the situation and deduct the 2 years from the NCD proof available.

 

Don't delay making a claim for a theft, as your policy will state that you have to report the claim to Insurers within a certain number of days.

[Northernpug]

Does sound a bit like incompetence! Technically you have made a claim and the NCB should be adjusted accordingly but if the insurers are saying otherwise and you have it in writing then they will have to abide by it.

 

Different insurers apply different rules to NCB. Used to be the case that if you had a claim you lost it all and you started again but these days sometimes it just gets stepped back and it can depend on how many claims you have in a given period.

 

If they realise they have made a mistake, they may try and reduce the NCB and get you to pay an additional premium but get over that bridge if it comes to it.

 

With regards to getting alternative quotes, there is no reason why you can't supply the proof of NCB you have got provided you declare the loss as well. As long as the new insurers are in possession of all the facts, they can't hold it against you. How an insurer would respond when the claim is actually settled with regards to NCB would vary according to the insurers own policy of dealing with such matters.

 

I am aware that there is a "statute of limitations" of 3 years to claim in certain circumstances but usually that is over ridden by the terms and conditions of the policy when making a claim with you own insurers. But it appears you have complied with the policy terms and conditions by notifying them of the loss and they have now given you 3 years to claim for your loss.

[dw190]

As soon as you register a claim with most Insurers, the claim is pending with a fault status attached, which will automatically reduce the NCD by 2 years. It is only if the Insurers then make a full recovery, that the NCD will be reinstated. Sometimes if you make a claim during the renewal period, the Insurers will issue wrong NCD years proof, as the policy will go into renewal mode about 5 weeks ahead of renewal. The renewal is then sent with the wrong NCD showing. If you phoned new Insurers for a quote for a new policy, they should be switched on enough to realise the situation and deduct the 2 years from the NCD proof available.

 

Don't delay making a claim for a theft, as your policy will state that you have to report the claim to Insurers within a certain number of days.

 

I had to make a claim two years ago. Was quite happy when I asked what difference it would make at renewal and was told my NCD would be reduced from 75% to 70% and would revert back to 75% at he next renewal date. All in all one years loss of NCD and no effect on the second car.

[sgtbush]

sounds to me that you would be decieving your new insurance company buy not declairing it