The Car Hub

It’s getting so damn hard to maintain an optimistic outlook on life these days. The insurance industry which we have always looked to to safeguard our chattels is now turning the screw.
As a driver the idea has always been that if you drive safely and make no claims you will be rewarded by your car insurer with an increase in your annual no claims bonus which would then see your insurance premium for the next year reduced, nice and clear isn’t it?. Not any more.
You might think that after you’ve paid car insurance premiums for many years that a claim against your insurer for a few hundred pounds, against the thousands of pounds paid in over the years, would be an ok move to get back some of the folding stuff. Wrong move.
The whole insurance industry now appears positively “anti” any claims made against it. While insuring your house, your life, your holiday travel etc etc. Is optional it is not so if you plan to drive a car, motorbike, van or anything else on the roads, you’re over a barrel.
No matter what kind of insurance you have if you make a claim , even if you’re not negligent, your insurer records it and the first you may know something has changed is when your next renewal premium arrives, it’s much higher.
That’s just the start, what is not mentioned on any insurance policy is the insurers exact response to claims; just as in the case of criminal offences the “3 strike rule” is applied and it’s possible your current insurer will not re-insure you if you have 3 claims in 3 years. Insurers who apply this rule include M&S Money and Virgin Money but it does not end there.
For home insurance there are companies out there who will only allow 2 claims in 3 years which can make it extremely difficult to renew insurance after claims as you, the insured, are required to state whether you have ever been refused insurance cover.
Legal and General are one such company who apply the last mentioned rule (2 claims in 3 years) but if you have home insurance with eSure you’re only allowed 1 claim in 3 years after which you will have to look elsewhere for house cover.
We should state clearly here that there are variations between insurance companies in applying the “3 strikes” rule and also in their application in relation to both home and car insurance policies. It may sound boring but – read the small print carefully.
 There is a likely way to forestall this nastiness with your insurer. It is possible for you to negotiate with your insurer the amount of voluntary excess you agree to pay towards a possible claim, with this sum agreed your insurer may then take a more understanding view if you do have to fill in that dreaded claim form.
We live in HOPE.
Bill Williams
www.thecarhub.net