Car Insurance Query, Re: loss of licence

GTFalcon 351 · 17-01-2005, 07:13 PM

Hi,
Ive been informed by a friend that he has been refused a payout for damage to his car by his insurance company because he did not inform them that he had his licence suspended for a period of time a few years ago

I have also lost my licence and have had it re-issued recently and am wondering whether i need to inform my insurance company as i would have thought that my traffic infringement details should be guarded by a privacy policy

Cheers

Racecraft · 17-01-2005, 07:16 PM

nope, you must divulge any and all traffic convictions to your insurance company

jaytyn · 17-01-2005, 07:17 PM

You will need to disclose to the insurer any details that may affect their decision to offer you insurance, and as to what rate your premium would be based on that risk.

You should read your policy guidelines and terms and conditions to fully understand your obligations under that policy.

But to answer your question, yes, you should tell your insurer about any previous claims, incidents, loss of license or infringements etc etc

dansedgli · 17-01-2005, 07:27 PM

I had a mate who had full comp on his EF XR6, it got stolen and was recovered missing the bodykit, dash, wheels and heaps of other stuff was damaged and they wouldnt pay out because he didnt inform them of a speeding fine he got 2 years earlier.

EA2BA · 17-01-2005, 07:55 PM

basically anything in the last 5 years must be divulged according to most policies (from memory)

pepsimax · 17-01-2005, 09:33 PM

and it normally states that you are only covered if you are a licensed driver,,and what was this moron doing driving with out a friggen license,how bloody stupid is he.he deserves everything he gets

pauljh74 · 17-01-2005, 10:45 PM

I take it the damage occured after his licence suspension has finished. But in the case where the guy's car was stolen, the driver's driving infringement history has zero significance in that case. I would look further into it for that situation.

The "logic" behind the rule is that if a driver has lost their licence due to infringements, then they are a higher risk of crashing than a driver who hasn't lost theirs, and an adjustment to the premium to reflect this is needed. But since that wouldn't be a factor in theft, they shouldn't have a reason to deny a payout as you could argue it had no bearing on the theft. It's just their excuse to weasle out of paying. Unless that speeding fine was major, one speeding fine should have no bearing on the risk level of that driver. I'd say the case with the EF would be worth pursuing further.

A mate of mine crashed his R32 Skyline GTS-T into a power pole after losing it through a corner. They claimed a tyre was unroadworthy and refused to pay out - even though that tyre wasn't the tyre being loaded up on in the corner and most likely didn't cause the accident. My friend thought that was it - but has taken the matter up again after a few years after getting further advice from someone and is likely to be successful.

To address the first post, it would be wiser to inform the insurance company of a major event such as loss of suspension of licence and possibly cop an unfavourable change to your premium/excess than to keep quiet and possibly get refused a full payout in the event of total loss of the car though accident/theft.

T_Terror · 17-01-2005, 11:05 PM

Some insurance companies really are bastards and will go to lengths to avoid paying out in a claim.

Im using Recovery Lawyers to claim when i got hit by someone and had no insurance myself. Its taking a while but is a good alternative when dealing with bullshit insurance companies.

GTFalcon 351 · 18-01-2005, 12:18 AM

Quote:

Originally Posted by pepsimax

and it normally states that you are only covered if you are a licensed driver,,and what was this moron doing driving with out a friggen license,how bloody stupid is he.he deserves everything he gets

Sorry dude i should have explained it better,

the accident occured after his licence was re-issued but he never informed his insurance company that it had ever been suspended

chippa6 · 18-01-2005, 01:30 AM

It pays to tell the insurance company everything - especially re- loss of licence speeding fines etc. - Most of the time when you apply for insurance they will ask you a whole heap of questions about these things.
I got a online quote for my old 4WD through one lot and when i'd paid the car dealer the money and rang to give the quote number and get it insured at the caryard they asked me re loss of licence in last 5 years. -I had, and they subsequently refused to insure me on the spot. - frantically rang around, found NRMA and never looked back.

Cheers

LTDHO · 18-01-2005, 08:29 AM

"Duty of Disclosure"
Means you have to tell the insurance company everything, not choose to forget to mention an infringement.

An insurance campany can deny any claim and cancel a police if you have not been honest and up front.

I would be surprised if a theft claim was denied due to speeding infringement. I would have taken it further.

Read your Policy book (or PDS) from cover to cover. Anyone with insurance should. Otherwise you are assuming, very dangerous!

shane3 · 18-01-2005, 10:54 AM

Quote:

Originally Posted by pauljh74

The "logic" behind the rule is that if a driver has lost their licence due to infringements, then they are than a driver who hasn't lost theirs, and an adjustment to the premium to reflect this is needed.

My last 3 speeding fines have been for 3km/h, 3km/h, and 8km/h over the speed limit!!! surley I have a higher risk of crashing due to my speeding!!!, a total of 6 pionts and $350

pauljh74 · 18-01-2005, 01:57 PM

Quote:

Originally Posted by shane3

My last 3 speeding fines have been for 3km/h, 3km/h, and 8km/h over the speed limit!!! surley I have a higher risk of crashing due to my speeding!!!, a total of 6 pionts and $350

That's the insurance company's excuse for shafting people for more $$$

Pearly · 18-01-2005, 07:05 PM

What happens if you have insurance, and then your license is suspended, after you already have a policy? Do you still have to tell them?

LTDHO · 18-01-2005, 07:37 PM

Quote:

Originally Posted by shane3

My last 3 speeding fines have been for 3km/h, 3km/h, and 8km/h over the speed limit!!! surley I have a higher risk of crashing due to my speeding!!!, a total of 6 pionts and $350

Yes you are and you have proven this. A majority of motor acident occure when a law is being broken and frequently it is speeding.

Quote:

Originally Posted by pauljh74

That's the insurance company's excuse for shafting people for more $$$

Shafting???? How do you work that out?
Do you have any idea what insurance is and what it is based on?

One word 'Risk'.

Kryton · 18-01-2005, 08:01 PM

you should tell your insurance agency but also be prepared to have your policy VOIDED immedialty when you do tell them.
no point having the policy if they arent going to pay out later in time because of this.
and Pearly you have a policy and during the period of that policy you have had your license suspended from driving offenses. why do you think you wouldnt have to tell them? of course you do coz now youve just earned youself the title of 'High Risk Driver'. if your not voided immediatley (i would be suprised) you will have huge premiums now.

shane3 · 18-01-2005, 08:25 PM

Originally Posted by shane3
My last 3 speeding fines have been for 3km/h, 3km/h, and 8km/h over the speed limit!!! surley I have a higher risk of crashing due to my speeding!!!, a total of 6 pionts and $350

Quote:

Originally Posted by LTDHO

Yes you are and you have proven this. A majority of motor acident occure when a law is being broken and frequently it is speeding.

Originally Posted by pauljh74
That's the insurance company's excuse for shafting people for more $$$

Shafting???? How do you work that out?
Do you have any idea what insurance is and what it is based on?

One word 'Risk'.

I take it that you drive like Miss Daisy then ??????????
You take a risk every time you step out your front door as no one knows whats going to happen.