ChatterBank2 mins ago
declaring driving ban and costs
hi i was wondering if someone could help i am going to receive a short term disqualification from driving, for the offence of driving with no insurance. i will have to declare this to the insurance company. i have already found out that this will cost me as much as �500 more to insure myself. my question is, will i have to pay �500 more every year when renewing my policy and/or changing insurer, or does this charge only apply when the policy has been taken out for the first time after the conviction? if it helps, i will be convicted in august 2008 but my policy is not due for renewal until may 2009 thanks
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No best answer has yet been selected by ritual11. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.Insurers manage risk. The risk is that you might make a claim. They can't know if you will so they use your historical record to predict what might happen. They do this in a sophisticated way.
Immediately you tell them something that impacts your risk rating, they load the premium at the next opportunity - in your case by say �500.
After a year in the clear, you have started to 'redeem' yourself - you've had a year with no problems. So you are less of a risk and the premium is likely to be less extra loaded. And so on after the 2nd year of no further difficulty. But it will take more than a year for the 'taper' to be removed.
They do afterall ask a standard question about any accidents or convictions in the last 5 years - that gives you an idea how long they want to know about such events.
Immediately you tell them something that impacts your risk rating, they load the premium at the next opportunity - in your case by say �500.
After a year in the clear, you have started to 'redeem' yourself - you've had a year with no problems. So you are less of a risk and the premium is likely to be less extra loaded. And so on after the 2nd year of no further difficulty. But it will take more than a year for the 'taper' to be removed.
They do afterall ask a standard question about any accidents or convictions in the last 5 years - that gives you an idea how long they want to know about such events.
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