Can I lose No claims discount after purchasing Car Insurance.

[Satcommlee]

Had a bump last night..

Existing Toyota 1st year free insurance runs until Mid November, and I have claimed off that and the car is in for repair.

But I renewed and paid for a second years insurance last week with a new company, which will start mid November..

For the second years policy they gave my 40% No Claims Discount and at the time of buying the insurance I had no claims.. but now I have had a claim before the second year insurance starts.

Do I need to tell them about this?

[stevenl]

I highly doubt the policy is issued under condition 'no claim before start date' and would not mention it. Check your policy to be sure though.

[DGS1244]

Depends who the insurer is and is there a broker involved, be careful.

[joebrown]

Depends who the insurer is and is there a broker involved, be careful.

The ethical, and often the legal basis of any insurance cover is that you should notify the insurer of any material fact that might affect their decision to insure you. The insurer is also duty bound to inform you of anything material that might affect your decision to pay a premium. This doctrine is known as 'Uberrima fideis' in Latin, and translates as 'utmost good faith'. This applies to all forms/types of insurance. If you do not tell your new insurer about the accident/claim on your existing policy you might prejudice any future claim you make on the new policy. Is it worth the risk not to tell?..... It's your decision.

[natway09]

Joe is right, better tell them as in the future have a big prang, they find out you withheld info, could come back & bite you in the arse

[hansgruber]

If it was just a bump, why not just pay cash to repair it and leave your insurance out of it.

Pays off in the long run.

Sent from my LG-D858

[Satcommlee]

If it was just a bump, why not just pay cash to repair it and leave your insurance out of it.

Pays off in the long run.

Sent from my LG-D858

It was a big bump...

Thanks for all the suggestions guys, having read the terms and conditions carefully there is no stated requirement to inform them.. but they do have the right to cancel insurance on 30 days notice.

So I think I will go with the majority here and let them know.. I'll post back what they say.

[Satcommlee]

Result:

At first they said they may have to increase the premium, but then came back and said the underwriters said it can stay as it is.. so no increase in premium.

DirectAsia Insurance - I will recommend them highly..