Multiple policies

[RobM]

If you have two insurance policies, and you claim on one of them, does it effect the other ? When you renew they always ask if you've had any claims. Does it not matter if its on another policy?

[johnny boy]

Rob,

Regardless of policy or vehicle, you must tell them of any claims you have made.

John

Edited by johnny boy on Tuesday 20th November 13:57

[.mark]

I have been in this situation. I was told by the insurer (and others while shopping around for the 2nd policy) that if you were claiming from a third party in a non-fault accident and all costs were recovered it made no difference to their price.
I don't know however, how they would stand if the other claim was your fault.
Did all that make sense!?!?!?!??!?!

[Bruce Fielding]

On a slightly different but related subject, I've always wondered about this. If you put a quid on a horse at two different bookmakers and it comes in like a goodun, you get paid out twice (after all, you risked losing twice!) So howcome you aren't allowed to have more than one insurance policy on one vehicle? And even if you do, you can't claim on both of them? After all, insurance is only sophisticated gambling, and if you don't lose, they win...

[smeagol]

Its to stop people insuring a car with several companies then torching it to make a profit.

Also the gamble with an insurance company is different from a horse race bookies. If the horse does win the bookies do not send out lawyers and various other professionals to get as much excuses as possible not to pay you for the full amount of your winnings

[Horse]

The real con is that the NCB is only applicable to one vehicle "its the car not the driver Sir", but any claims on other vehicles will affect your premium, as will misdemeanours by the driver.

[JSG]

I may be able to shed some light on this as I have been talking to numerous Insurance Companies today as my Cherokee insurance is up for renewal.

I have 3 policies, 1 for the wife's LR which has run for umpteen years with prot NCB (just as well with her recent record), 1 for my Jeep with 6 years NCB (5 years given last year when I opted out of the company car scheme) and a classic policy for the TVR with 6 years prot NCB.

Each policy accrues it's own NCB which can only be used on one policy, however some companies will offer to give 5 years introductory bonus if you have existing bonus that can't be transfered - I got this when I gave up the company car and when I got the TVR the year before.

Any convictions or claims need to be declared for all drivers on all policies (even if you have a claim on a company policy) but a claim on one will not affect the bonus on the others.

The company who insure the LR will give me a good price to add the Jeep to the policy (£430 per year) but say that the 2 NCBs will continue to run independantly. I'm not convinced about this but the best quote on the Jeep so far is £600.

The TVR costs less than that.....

[simonb]

It was once explained to me a bit like this ...

A motor insurance policy is a contract of indemnity against loss. If you munch your new Tamora and cause (only) £10,000 of damage, you can claim against your insurer for £10,000. Suppose for a moment you took out two insurance policies, you could claim £5,000 from each, or perhaps a different split, but never more than £10,000 in total. So there's no point having more than one policy because you'd be paying double the premium (or more) for the same indemnity.

If you don't tell anyone you've got two policies on said Tamora and decide you're entitled to the £10,000 twice ("I've paid two premiums, so I'll make two claims") then you could be in a spot of bother if they find out about each other. At best, they'll ask for their money back (an insurance policy is a contract of "utmost good faith" and you must disclose all material facts). At worst, there's the little matter of fraud - and it won't just be the local Bobby who may take a keen interest. Lose the car, lose the job, lose the wife ....

Off on another tangent, I've just insured the V8S through Sunninghill. It's by far the cheapest premium I've had in four years of ownership. How do they do that?

[RobM]

Spoke to my insurance company today. They say the claim on the policy wont effect the tvr policy, but they still need to know the claim details, damage, costs etc.