How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Jo C. Your Own Question
Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 70212
Experience:  Over 5 years in practice
12826847
Type Your Law Question Here...
Jo C. is online now

My car insurance renewal was due 14th August 2015. On the

Customer Question

My car insurance renewal was due 14th August 2015. On the 11th August I had a minor scrap, which was my fault in a car park. This I omitted to the Insurance company and consequently had my new premium raised from the original quote of £410.00 to £503.30.
plus I now have no claims bonus. A letter arrived dated 26th August that claims I now need to pay an additional premium of £436.89.
I don't understand if our car (I am a named driver )was insured as fully comprehensive that I should have to pay this additional premium.
Submitted: 1 year ago.
Category: Law
Expert:  Jo C. replied 1 year ago.
Hi.
Thank you for your question. My name is ***** ***** I will try to help with this.
I'm not sure why the premium shouldn't be increased if there was a collision?
What are you thinking?
Customer: replied 1 year ago.
I am thinking that the additional premium is unreasonable. Does insurance not cover collisions?
Customer: replied 1 year ago.
My premium has been increased that I accept but why an additional premium?
Expert:  Jo C. replied 1 year ago.
Yes, they are liable on your behalf.
If you have collisions though then your premiums increase because the risk increases. That is what happens with insurance. It is a risk assessment.
I'm afraid that is the basis of the industry. An insurance company is liable on your behalf for any damages arising from collision. If you are a good insurance option your premium is low. If not it is high. If you were a fairly good option but there is a collision then the premiums increase to address the risk.
I'm afraid the increase is perfectly reasonable.
I'm very sorry but that is your position.
Can I clarify anything for you?
jo
Customer: replied 1 year ago.
It is not the increase in premium that worries me it is the additional premium.
Customer: replied 1 year ago.
Why is there an additional premium? I could have paid the other driver's costs and not lost my no claims bonus.
Expert:  Jo C. replied 1 year ago.
Well, only they will know their justification for that.
I would imagine they are saying there is some form of relevant non disclosure. That is usually their justification.
Expert:  Jo C. replied 1 year ago.
On your second point, it is usually a good idea to do that because of the increase in premiums.
Customer: replied 1 year ago.
Can I challenge their 'additional premium' as the car was insured 'fully comprehensive'. Also I have since searched the internet for other insurance quotes, since the claim, and have found premiums at half the price.
Customer: replied 1 year ago.
Today is my last day for 28 day to cancel.
Customer: replied 1 year ago.
Will you answer my last question?
Expert:  Jo C. replied 1 year ago.
Comprehensive insurance doesn't mean they cannot increase the premium. It means they are liable for all eventualities including damage to your own car.
It may well be a bad price. That is not a challenge. It is a competitive market. That is why price comparison sites exist and should be used before agreeing the price. If you have agreed the price now then there is no challenge arising from the fact that it is a bad price. You can complain and they might reduce the price but if they refuse there is no legal challenge.
Customer: replied 1 year ago.
It is not so much about the increase in premium that really annoys me it is the 'additional premium' over two weeks later.
Expert:  Jo C. replied 1 year ago.
Yes, usually that would refer to some allegation of relevant non disclosure.
But you can ask them for their justification.
Customer: replied 1 year ago.
Are they within their legal right to ask for an 'additional premium' and can I contest this.
Expert:  Jo C. replied 1 year ago.
Well, as I have said really. Yes, they can do that for certain specific reasons.
If those reasons apply then it cannot be challenge.
Jo C. and 2 other Law Specialists are ready to help you
Customer: replied 1 year ago.
thank you for your help
Expert:  Jo C. replied 1 year ago.
No problem. All the best.