# Key Post: Sources for Car Insurance after small claim



## Marion (25 Oct 2002)

I had a small claim on my car insurance last year of 3,000Euro, my first accident. My insurance has therefore tripled in my renewal quote. Is there anywhere I can get competitive quotes or does everybody require 5 years claim free driving? Thanks for your suggestions


----------



## Red (25 Oct 2002)

*Quote*

Cyra

Did u loose all your no claims bonus? How much did you have? Who are you insured with/ Is it direct or through a broker?


----------



## cyra (25 Oct 2002)

*car insurance*

I lost all my no claims bonus, I had >6 years. I switched insurance companies the previous year to One Direct and forgot to check about the protected no claims bonus as such it is all gone. I have called around and it is looking like nobody will quote and I will have to stay with One Direct.


----------



## Red (26 Oct 2002)

*Insurance*

Cyra

If it any consolation to you, this is not the first time that this has happened. There are numerous cases where people switch insurers, for a lower premium, but it is not on a like for like basis. If you were insured through a broker, at least you could have blamed him/her because in all probibility your previous insurer would have had it on their policy. As it stands you have no recourse. 

The minimum bonus protection that anyone should have on their car is Step-Back. It costs a few extra euro but imho it is well worth it. If you had this on your policy your Insurer would probably have stepped you back to 2/3 years No Claims Bonus because the amount of the claim was small. There is no point paying for it this year as you have nothing to step-back from!

If you claim was for €500 the same rule would have applied. You would have lost all your bonus because you did not have the step-back protection.


----------



## rainyday (26 Oct 2002)

*Re: Insurance*



> As it stands you have no recourse.



Hi Red - Would you have any recourse if you'd gone through a broker (other than having somebody to shout at)?


----------



## Another Person (26 Oct 2002)

*.*

Stating the obvious here. It might have been cheaper to pay out the €3000 yourself (without claiming)

My insurance has come in at over €800. This is for an over thirty, with 7-8 years accident free motoring. The car is a fiesta with a 1.25 engine. Why does it go up each year?

I remember when I first got a car (1.3 Astra) and had zero years no claims, 7-8 years younger than I am now, my insurance was less than £300 (sterling - yes this was in England). When I moved to Ireland, my insurance shot up three fold, to over a grand!


----------



## Wings Of Chicken 1 (27 Oct 2002)

*Car Insurance claims*

*....It might have been cheaper to pay out the €3000 yourself....*

It may still be possible to do so. *cyra* should contact the Insurer and ask. Most of the traditional Insurers will consider this favourably, but I'm not sure if the 'direct' writers will allow it.

*rainyday*, on the question of recourse, I suspect *Red* had in mind the notion that a Broker would have explained to main features of any new Policy, and if he had not done so, then there would have been a potential case for breach of professional duty.

Whatever the outcome for *cyra*, this serves as a useful example to all of the potential dangers of dealing with 'direct' Insurers.
Wings


----------



## rainyday (27 Oct 2002)

*Re: Car Insurance claims*



> there would have been a potential case for breach of professional duty



Thanks Wings - Does this kind of thing happen often?


----------



## Wings Of Chicken 1 (28 Oct 2002)

*Re: Car Insurance claims*

Can’t give you statistics *rainyday*, but it does indeed happen. Ask any Broker about the rising cost of his Professional Indemnity Insurance (the rises in Motor Insurance costs are small in comparison).

In fairness, the majority of Brokers and their counter staff are wel-versed in what information to take from a client and what information to provide. But errors and failures do happen, and the consumer who suffers is more and more likely to make a claim….

Wings


----------



## Jim (29 Oct 2002)

*Car Insurance*

A question for Wings..

if you pay back the claim, it is not really an advantage as when looking for other quotes as the insurer will ask you have you made a claim. I think that yes, you have made a claim even though you repaid it. Am I not correct here?


----------



## Karen Mc (30 Oct 2002)

*PI*



> Can’t give you statistics rainyday, but it does indeed happen. Ask any
> Broker about the rising cost of his Professional Indemnity Insurance (the
> rises in Motor Insurance costs are small in comparison).




A "related" story from Money Marketing

PI in the sky as IFA's premiums rocket by 650%
Chris Duncan

A Brighton IFA has been hit with a 650 per cent rise in its professional indemnity insurance despite having minimal exposure to potential endowment or split-cap misselling claims.

SR Financial Management submitted a PI renewal form to insurer St Paul several weeks ago, expecting to receive a quote roughly comparable to the £5,040 it paid for £1m worth of cover with the same company last year. But it was stunned at the end of September to find that St Paul was demanding £38,235 to renew its insurance, with a policy excess 15 times higher than the £1,000 it was previously subject to. 

SR director of development Tony Travis says he rang the underwriter to query the premium and was informed SR was only offered reinsurance because it is low-risk, with little or no exposure to split-caps, structured products and drawdown. He says: "St Paul said we were lucky to get insured at all but it is nothing short of extortion. Some IFAs cannot pay these premiums and will throw their hands up and quit the industry. I find it totally mind-blowing."

St Paul marketing manager Peter Elliott says: "The misselling issues just are not going away. The pre-miums of many pay for the losses of a few."


----------



## Wings Of Chicken 1 (30 Oct 2002)

*Re: Car Insurance*

*Jim*,

A good question. 

Let’s look at some scenarios. 

1. Your car suffers a small scratch from a trolley in the supermarket car park. You might fix it yourself for an outlay of €10.00.

2. Your car suffers a small bump – say indicator glass broken – from a trolley in the supermarket car park. You might have it fixed by the local mechanic for €100.00 with a spare part.

3. Your car suffers a more serious bump – say wing damage – from another car in the supermarket car park. Repairs might cost €1000.00. 

Each of these constitutes a ‘claim’ or an incident giving rise to a potential claim. Only the quantum varies. Whatever the value, if you pay back the claim, then you should have your Bonus reinstated. 

Some Insurers have taken the position literally. If you made a claim, then you lost your Bonus. But that approach caused problems where different motorists insured with the same Insurer both suffered damage per 2 above. The guy who had the problem fixed himself retained his Bonus, the guy who claimed and then re-paid the €100.00 lost his Bonus. Inequitable of course.

Don’t forget, there is no obligation to notify your Insurer of a claim unless the incident involves a third party.

Wings


----------



## Jim (30 Oct 2002)

*Re: Car Insurance*

"Don’t forget, there is no obligation to notify your Insurer of a claim unless the incident involves a third party."

Hi Wings

This is an interesting statement.

What happens in the situation where you are looking for insurance from another company and they ask you about recent claims? Do you have to disclose them if no third party was involved?

I ask because I made a claim against a protected no-claims bonus for an amount of €1000. As a result I find it difficult to get quotes and am essentially stuck with the same insurer. If I pay back the claim, can I then say that I haven't made a claim in the last 5 years? (BTW I would have just paid for the repairs myself if the broker had properly explained the implications)

Thanks

Jim


----------



## Wings Of Chicken 1 (31 Oct 2002)

*Re: Car Insurance*

*jim*,

The point here is that you don't have to notify your Insurer of an 'own damage' incident if you don't wish to make a claim for it.

You do have to disclose whatever information is asked in the Proposal Form. This would include 'incidents' if that is how the question is worded. The question would normally ask for circumstances and costs. If 'own damage' with nil cost to the previous Insurer, you reply accordingly. New Insurer should regard this as 'no claim' - but would naturally be concerned if you declared say a dozen scrapes in a year, even if you repaired the damge yourself.

In response to your final question, you can say what you like - as long as it is truthful!  Tell a new Insurer the facts.

Wings


----------



## Cyra (5 Nov 2002)

*Reinstatement of No Claims Bonus*

Amazingly I contacted 'One Direct' who referred me to 'Claims' in Hibernian and yes I can repay the claim and they will fully reinstate my 'no claims' bonus. I am amazed that this is possible. Thanks for the suggestion.


----------



## Wings Of Chicken 1 (8 Nov 2002)

*Re: Reinstatement of No Claims Bonus*

Great result for you *cyra*.

Wings


----------

