Car Break In - Insurance Advice

[Marmora Man]

Our old Peugot 206 was broken into last night on Scutarti Road. Door damaged beyond repair, radio and sat nav (hidden in glove compartment) stolen.

Apart from the embuggerance factor and the loss of a useful local runaround car - I'm not sure about claiming on insurance. Our cars are on the same group insurance - if I claim I fear the premium increase will be far larger at least over rtwo years) than the likely cost of fitting another (recycled) door and replacing radio & satnav.

Does anyone have any experience - if I ask the insurance company that would inform them of the theft and, presumably, trigger the premium increase anyway.

[Loz]

Check your policy - there may be a clause that means you must inform them of such incidents even if you are not claiming.

[womanofdulwich]

but why would you?

[ClareC]

I wouldn't claim...... Your premium will increase for sure, and you will lose your no claim bonus.

I had someone hit my car and write it off, they apologised, admitted liability and I claimed from their insurance without using my own. I notified my own though and hey presto come renewal the premium was hiked up considerably!

[Loz]

womanofdulwich Wrote:

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> but why would you?

Because insurance contracts are governed by the doctrine of utmost good faith - meaning that you are obliged to make a full declaration of all material facts. Should you have an accident and insurers find you have not declared something then they may decline to pay out on that basis.

Warning: I am not a lawyer. Or an actuary, for that matter.

[womanofdulwich]

loz, you are a very honest person. :))

[Salsaboy]

You could inform the insurance company, in writing, of the 'event' but that you are not claiming. They'll probably put the premium anyway though.

[Loz]

womanofdulwich Wrote:

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> loz, you are a very honest person. :))

Not really. :)) But it is worth bearing in mind as to whether you will get away with not telling the insurance company. Coz if they do find out...

[ruffers]

Loz is right but in the real world I wouldn't tell them.

[trizza]

Loz Wrote:

-------------------------------------------------------

> womanofdulwich Wrote:

> --------------------------------------------------

> -----

> > but why would you?

>

> Because insurance contracts are governed by the

> doctrine of utmost good faith - meaning that you

> are obliged to make a full declaration of all

> material facts. Should you have an accident and

> insurers find you have not declared something then

> they may decline to pay out on that basis.

>

> Warning: I am not a lawyer. Or an actuary, for

> that matter.

Sorry to be legal, but we need to distinguish between a pre contractual and post contractual duty of good faith. Pre contractual would cover off your duty to disclose all material facts to your insurers, post contractual duties would include, for example, the duty not to make a dishonest claim.

As to pre contractual duties, these do not arise for MM at this stage as his policy is mid term. An issue may arise when he renews. Although MM would have a duty to disclose all material facts, the reality is that with consumer insurance this duty is generally limited to giving accurate and honest answers to questions posed to him by his insurer.

These questions would usually include "have you ever made a claim" - if MM does not make a claim on his policy in respect of his damaged car then he would be right to answer this "no". The position would be different if the question is "have you ever had a car broken into but not made a claim" - but car insurers never ask that question. Why? They are probably not that interested in events that do not cause a financial loss for them and other insurers. In addition, if policyholders had to declare every potentially insured event which they do not claim for (scratches, dings etc) then the insurers would be inundated!

As for post contractual duties, I think it is unlikely that this is the sort of thing MM owes a duty to tell them about unless, for example, the car is left in a dangerous state or is now more easy to steal (thereby giving rise to an increase in the risk). Even then, I doubt very much insurers would take a point.

If I were you MM I would disable the vehicle, then get it scrapped, cancel the insurance and reclaim your road tax. If they ask you why are cancelling you can always tell them at that stage (bearing in mind your post contractual duty of good faith - obviously...). I very much doubt they will care (even if they do ask and you tell them).

[Loz]

These questions would usually include "have you ever made a claim" - if MM does not make a claim on his policy in respect of his damaged car then he would be right to answer this "no". The position would be different if the question is "have you ever had a car broken into but not made a claim" - but car insurers never ask that question. Why? They are probably not that interested in events that do not cause a financial loss for them and other insurers.

The question one of them asks is: "Any accidents or losses, whether there was a claim or not and regardless of blame, in the last 5 years".

Insurers like to cover all bases...!

[SCSB79]

It's important that you inform your broker of all incidents of damage or loss, however small, and even if you do not make a claim for them. There have been cases where insurance companies have refused to meet claims because the driver failed to disclose previous incidents.

? You must tell your insurance company about the accident, even if you do not intend making a claim, as you will always need to report and incident. Your broker can advise you about whether you should make a claim or not.

http://www.biba.org.uk/CarInsuranceAdvice.aspx

I assume the second part could also be attributed to break-ins and not just accidents...

[Moos]

I have no useful advice but would like to congratulate MM on his use of the phrase 'embuggerance factor'.