Lesson learnt - insurance

[harvin1975]

So, back in Nov 2014 I had a slight knock with another car whilst reversing out of my drive. The other car was parked and whilst I reversed I knocked the side of their bumper slightly. Damage - nothing that couldn't be easily t-cut/buffed out. But a scratch nevertheless.
Decision was made by other party not to claim.
However, I provided my insurance details nevertheless and then informed my insurance company that they may get a call.

My insurance is usually around £150 per year with a £350 vol excess.
When renewing they asked if I've had any claims - I said no, but then said that there was a no-claim incident. This all got input in the computer and new quote is £260.
Phoned around and all other insurance companies have increased premium from £100-150 for a non-claim incident.

Currently they ask if any accident/incident/claims in last 5 years. So, assuming hike of between £100-150 per year this non-claim incident is going to cost me between £500-750 over the next 5 years!

Wish I'd never made that phone-call now. Lesson learnt for me!

 

[grumpyoldgit]

And they say honesty pays.

 

[automaniaman]

^ not in this case it didn't...

 

[bob6600]

We has exactly the same thing a few years back, uninsured driver hit our parked vehicle, one was an old car but rang the insurance who said it would be written off (bumper damage) so decided not to claim. Next year the vehicle had a marker for an incident and even though no claim was made, an incident had happened and we were more 'at risk' even though it was an uninsured drunken driver joyriding on a quadbike

 

[Lit91]

No surprise here, always knew that they operate for their own benefit only. Because motor insurance is compulsory, they have the ability to dictate anything they like in relation to insurance terms and premiums.

I'm not saying that I'm against compulsory insurance laws, but the situation would of been completely different if insurance was an option.

 

[harvin1975]

Even tried getting them to remove it.

Insurance Guy: "Sorry sir, we cannot remove this claim"
Me: "It's not a claim!"
Insurance Guy: "It's on the Claims and Incidents section"
Me: "OK - but it's not a claim and it's outrageous that this is going to cost me hundreds of pounds. I want this removed"
Insurance Guy: "I cannot remove this claim"
Me: "What claim?"
Insurance Guy: "The one you disclosed to us in November 2014"
Me: "I don't know what you're talking about - I've never had an accident. I think your records are wrong. Prove I had an accident!" (Worth a try!)
Insurance Guy: "We're not removing it!"

 

[harvin1975]

Google Image Result for http://blog.hellasdirect.gr/wp-content/uploads/2012/10/i-just-saved-a-bunch-of-money-on-my-car-insurance-by-390x306.png

 

[Deleted member 6183]

It's numbers game, individuals who have no claim accidents tend to have accidents.

Having said that, you could interpret that if it's a game then you should play the game.

I couldn't possibly comment on that.

 

[harvin1975]

It's numbers game, individuals who have no claim accidents tend to have accidents.

I clearly have a no claim accident - but don't tend to have accidents!

 

[st13phil]

So much for Utmost Good Faith

 

[Deleted member 6183]

I clearly have a no claim accident - but don't tend to have accidents!

It's a numbers game.

To coin a dreadful phrase 'the exception proves the rule'.

It's not personal, you don't know if your future holds lots of accidents, they think it might.

 

[tec]

I clearly have a no claim accident - but don't tend to have accidents!

But you have just had one.

 

[Dryce]

It's numbers game, individuals who have no claim accidents tend to have accidents.

Really. And the proof is .......

All this actually indicates is that the customer is potentially less likely to claim from their insurer in a situation where there is a minor loss.

Moreover they declared the situation - which makes them more truthful.

 

[Deleted member 6183]

Really. And the proof is .......

All this actually indicates is that the customer is potentially less likely to claim from their insurer in a situation where there is a minor loss.

Moreover they declared the situation - which makes them more truthful.

The proof is in the numbers that the actuaries run to give rise to this view.

All this indicates is that the customer has had an accident (fault/no fault, claim/no claim) and, therefore, is likely to have another.

I suppose that they don't take into consideration the fact that the customer has declared the situation which is, of course, within their mandate.

 

[Dryce]

The proof is in the numbers that the actuaries run to give rise to this view.

You're assuming that actuaries are crunching meaningful numbers and that there are reasonable assumptions incorporated into them.

This is a reasonable assumption.

However observation of the companies' actual behaviour and application of logic suggests less rigor and more ...... well more something else.

 

[markjay]

Mrs. MJ had a no-fault incident recently, no damage to our car. Notified the insurer (Aviva) just in case the other side did decide to claim. I asked if the premium will increase even if the other party did not claim - answer was 'No'. Renewal is not due for another year so I can't say if this is true or not.......

 

[Deleted member 6183]

You're assuming that actuaries are crunching meaningful numbers and that there are reasonable assumptions incorporated into them.

This is a reasonable assumption.

However observation of the companies' actual behaviour and application of logic suggests less rigor and more ...... well more something else.

Agreed, if you loop back to my first post on the subject you will gain some context, I was only trying to help the OP understand the decision and not support it.

No good deed...

 

[uumode]

So let me get this right Mr insurance company.

Someone hits my bumper and I decide not to claim as no damage but very minor scuff on their bumper.

A. Alert insurer of accident and I get penalised for a non claim accident, if they don't go through their insurance company (because of excess)

B. Alert insurer of accident, and they claim insurance for their minor scuff moving my status 'not at fault' and I won't be penalised.

 

[harvin1975]

But you have just had one.

I walked into a lamp-post when i was 5 years old. I've never done this since - would you say i've got a tendency to also walk into lamp-posts?

 

[harvin1975]

Mrs. MJ had a no-fault incident recently, no damage to our car. Notified the insurer (Aviva) just in case the other side did decide to claim. I asked if the premium will increase even if the other party did not claim - answer was 'No'. Renewal is not due for another year so I can't say if this is true or not.......

Exactly what happened to me. Easiest way is to take a look at a comparison site. There's a section for accidents/claims and they ask specifically whether a claim was made or not. I said no incident initially and got quotes, then added it and saw all the quotes jump.

Based on this, going forth if i ever get involved in an accident again, i will not say anything to my insurer unless i want to claim. Happy to give details to other party if there is damage, but i will wait for them to simply claim.

Edit: just re-read your post. They are right. Current year premium remained unchanged for me. It's the following year when up for renewal is when the penilisation occurs.