Archive for February 2019

Insurance is essential for peace of mind, and many people choose to pay for policies to cover their life or the contents of their home. Some types of insurance are compulsory, including buildings insurance, business liability cover, and motor vehicle insurance.


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You may pay these premiums for years without making a claim only to find that when you do actually need to call on one of them, you encounter a problem due to the insurance company claiming that you did not disclose all relevant information either when the policy was first taken out or while it was in force.

Here is a detailed look at how such an issue plays out in the world of car insurance.

First contact with an insurer

Taking out a new car insurance policy can be a fairly time-consuming process and one that entails providing various pieces of information and answering a lot of questions. The responses you provide are known in the insurance business as material facts, and by sharing them with an insurer, it is assumed that they are completely truthful. This is important because it is all an insurer has to use when deciding if they wish to offer you coverage, and if so, how much you will need to pay.


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You may forget to let them know you changed cars, moved home, or got points on your license. You might be tempted to under-estimate things like your estimated yearly mileage, claim your vehicle is garaged at night although in reality you hardly ever actually bother, or to omit the fact that your vehicle will be used for business purposes, but the consequences if your lie is uncovered could be devastating. Motor trade insurance policies work in similar ways, but with competitive polices available from good insurers such as, there’s no need to evade the truth to try to save a few pennies.

The potential consequences of non-disclosure

Some examples include:

– Being charged the wrong premium
– A claim being denied, leaving you liable for all costs and vulnerable to increased premiums from a future insurance company.
– Only part of the claim being paid

Ultimately, it is never worth purposefully withholding information. If in doubt it’s better to over-inform than to fail to disclose pertinent information.

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