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Like most people, I suspect that we change our car insurances on renewal to grab the lowest premium rather than simply 'stay put' out of loyalty.
I changed on this year's renewal as the existing company raised my premium by 34% without good reason. I moved to LV insurance with a saving of some £100+ on the premium. When I spoke to an LV advisor ( on completing the deal ) I asked where to send the NCD proof. I was advised that only one in three applications actually have this done, therefore the NCD information is supplied and accepted on trust, as was in my case.
Discussing this with friends, we highlighted the situation where, for example, I was in an accident which resulted in a large third party claim. WE assumed, at this point, that the insurance company would ask for NCD or make other enquiries to validate it. I am assuming that there is not a central database where that sort of information is readily available, to be checked as the policy is issued.
We assumed that if the NCD information turned out to be false or incorrect, the insurance company would make the policy null and void and a such, the claim would not be entertained. AS such, my liability to the other party would become personal.
The point we raised was that if this happened, is the insurance company totally devoid of liability, or would they hold some liability on the basis of 'economic underwriting'. Of course the NCD information supplied might just have been a personal error with any malice intended.
Our thinking was that as everything is 'fast tracked' nowadays, do insurance companies rely on the rule that any mis-information supplied will always make a policy null and void. So, is that a safe assumption?
I changed on this year's renewal as the existing company raised my premium by 34% without good reason. I moved to LV insurance with a saving of some £100+ on the premium. When I spoke to an LV advisor ( on completing the deal ) I asked where to send the NCD proof. I was advised that only one in three applications actually have this done, therefore the NCD information is supplied and accepted on trust, as was in my case.
Discussing this with friends, we highlighted the situation where, for example, I was in an accident which resulted in a large third party claim. WE assumed, at this point, that the insurance company would ask for NCD or make other enquiries to validate it. I am assuming that there is not a central database where that sort of information is readily available, to be checked as the policy is issued.
We assumed that if the NCD information turned out to be false or incorrect, the insurance company would make the policy null and void and a such, the claim would not be entertained. AS such, my liability to the other party would become personal.
The point we raised was that if this happened, is the insurance company totally devoid of liability, or would they hold some liability on the basis of 'economic underwriting'. Of course the NCD information supplied might just have been a personal error with any malice intended.
Our thinking was that as everything is 'fast tracked' nowadays, do insurance companies rely on the rule that any mis-information supplied will always make a policy null and void. So, is that a safe assumption?
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