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Thread: Car Insurance - renewal after an accident

  1. #1
    Join Date
    Jun 2007
    Posts
    3

    Default Car Insurance - renewal after an accident

    Hi there,
    I had an accident last year and was very shaken up by it even though it was only a minor bump. As a result I was 'bullied' into saying it was my fault on the phone to the insurance company, which afterwards I was told by friends and family you never admit! (The situation itself was uncertain) But we got a new car, and now my policy is coming up for renewal. The problem is, now with no no claims, and a record of having an accident, it seems my insurance is going to skyrocket to around 1000 for the year. I am considering selling the car, it is such an expense. I only really need it to visit my mum in Scotland, and I would get by with occasionally renting a car instead, but with this accident on my record and only having had my license for about 2 years (I'm 24), I think that renting a car might be difficult.

    Does anyone have any advice, or recommendations? I also have my long term boyfriend on the insurance as a named driver, he is also 24, but has no history of accidents etc. Would there be any benefit in having him as the main policyholder?

  2. #2
    Join Date
    Jul 2007
    Posts
    2

    Default

    If you are the legal owner of the car (the name on the log book), then you must be the policy holder for insurance.

    My daughter who is 18 purchased a car with her savings, and I allowed her neme to be put on the log book (thinking this was the right thing to do as she paid for the car), I then got insurance with Direct Line with me as the policy holder and my daughter as the named driver..........It cost me 480 third party.

    Within a week, Direct Line cancelled the policy saying as I was a policy holder on another car, I was only doing what I was doing so I could get cheap insurance, of which I agreed........They then said it was illegal.

    I said to them, I will contact the DVLA to get the name changed so I would be the legal owner of the car, and they said its too late, I had already said the car was my daughters. (There is a technical name for what I was doing)

    I then said about all the young drivers, who cant afford insurance, and that Im not surprised they drive without, its coz of insurance companies not helping the honest people who try and insure their kids.

    I got her insured in her own name with Diamonds for 940........Really hard as I am a single parent with 2 kids living with me

  3. #3
    Join Date
    Jul 2007
    Posts
    60

    Default

    I'm afraid you were "blagged" as there is nothing illegal about insuring a car that you are not the registered owner or keeper of, as long as you have an insurable, financial interest in the vehicle. How else do you explain the fact that the insurers will cover a temporary hire car or courtesy car for you when asked to do so?

    The real reason they cancelled it is because they probably realised they had quoted you too cheaply, not realising you already had your own car insurance. What you should do is insure the car in your name as a second car with her on it, but also transfer your NCB to her car, insuring your own without it. Trust me, it would be cheaper!

  4. #4
    Join Date
    Sep 2007
    Posts
    1

    Default

    my bf is buying a new car so the finance would be in his name, can he put his dad as the 1st driver on the insurance so its cheaper?

  5. #5
    Join Date
    Sep 2007
    Posts
    2

    Default

    hi there- just acouple of quick thing about it is that you did exactly the right thing by having it in her name- generally with most insurers you do need to be the registered owner and keeper to insure it- we do it as it helps young drivers out in the long term- if you put it in your name with your child on who is the main user it is called " fronting" as it needs to be based on the main risk,
    car insurance is expensive for the first few years whenever you start so in the long term it is best to get going
    Quote Originally Posted by Legionreturns View Post
    I'm afraid you were "blagged" as there is nothing illegal about insuring a car that you are not the registered owner or keeper of, as long as you have an insurable, financial interest in the vehicle. How else do you explain the fact that the insurers will cover a temporary hire car or courtesy car for you when asked to do so?

    The real reason they cancelled it is because they probably realised they had quoted you too cheaply, not realising you already had your own car insurance. What you should do is insure the car in your name as a second car with her on it, but also transfer your NCB to her car, insuring your own without it. Trust me, it would be cheaper!
    there are reasons we cover hire/courtesy cars, e.g. in for servicing but only when your vehicle is insured by the garage
    rac staff

  6. #6
    Join Date
    Oct 2007
    Location
    Middlesex
    Posts
    8,509

    Default

    Slightly off topic I know, but worth passing on. A friend of mine had max ncb for years, and decided to opt for ncb protection. He then wrote off a Micra belonging to his wife. His next insurance renewal was for exactly three times what he had been paying. He queried it and was told that as he had an accident, a 200% loading had been put on his initial premium. When he shopped around, this was a general reply.

  7. #7
    Join Date
    Mar 2007
    Location
    Maidenhead
    Posts
    340

    Default

    i thought the whole idea of the protection was so it didn't go up due to a accident but could still go up for "other reasons"

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