Comprehensive Car Insurer Increased Premium after Filing Claim (Not at Fault)

LFaulty on 08/08/2019 - 12:17

Location: NSW
So I have my car comprehensively insured with a major car insurer. My wife and my-self are listed on the policy. A driver age restriction of 35+ is applied. My son (19, on Provisional P2 license) is not listed on the policy as he does not drive the car often enough, public transport is his main method of getting around.

Backstory:
Last week, I let my son drive my vehicle to university. He usually catches the train (2+ HR one way trip), but the trains were running delayed this day. So to avoid missing an assessment/test, I let him drive to uni. On the way to university, he brakes to avoid an on-coming car which has crossed double un-broken lines and came into his lane in an attempt to overtake a slow moving rubbish sweeper truck. Son stops in time and avoids any collision with the on-coming vehicle. However the driver behind my son, did not brake in time and rear-ended my son. Details were exchanged, and cars towed away, such was the damage sustained. Car will be a write-off most likely because the frame has been bent (doors down the left are jammed shut).

Dealing with Insurance (problematic part): so the evening of the accident (1 week ago), my son and I call the insurer to lodge a claim. They take son's details, the details of the rear-end driver. Today the insurance company call and inform me that the car is at the assessment center and they will be adjusting my policy by adding my son to the policy, which incurs a $600 premium increase (payable today). If this is not done, they will not process the claim.

I am confused why adding him to the policy is justified, after the not-at-fault accident? If this were any other unlisted driver other than my son, they would not charge an additional premium. The rep who called offered no explanation other that "we won't process the claim unless you add him to the policy" and he disconnected the call. I soon after received an email from the insurer showing the new updated policy, with the added premium.

Can someone shed some light into this - why is adding him to the policy is required to process the claim? I know no one can give 100% advice, just looking for general advice. Is there any regulatory body I can approach if their Internal Dispute Resolution process is of no help?

If I have missed any details, please let me know. Thanks.

Automotive Car Insurance Insurance

Comments

  • Davo1111 on 08/08/2019 - 12:28
    +5

    download the PDS and read it cover to cover.

    See if definitions for unlisted drivers include those in the same household.

    Read excess policy in regards to unlisted drivers and if excess is still required.

    Increased Premium

    It's not an increased premium, it sounds like an excess charge.

  • [Deactivated] on 08/08/2019 - 12:45

    It can increase as they have had to make a claim or representation on your behalf, which costs money.

  • Tech5 on 08/08/2019 - 12:47
    +18

    You are not being charged an increased premium. You are being charged an "Unlisted driver excess".

    You took the risk by not adding a P plater onto your policy, which would have increased the premium. You basically said to the insurance, my son will not drive it, so decrease my premium. Well he drove it and was in an accident. That is a risk you took to save you money.

    You can take my word as 100% gospel. All insurance companies do this

    • knobbs on 08/08/2019 - 12:51

      I see your point and 100% agree but I think OP was questing if they are not at fault why should it matter?

      If OP son was at fault 100% black n white needs to pay unlisted driver charge.

      • HighAndDry on 08/08/2019 - 13:08
        +1

        You pay the excess upfront whether or not you're at fault. If the insurer gets the excess from the at-fault party (or in other circumstances), you're refunded that excess sometimes.

        • knobbs on 08/08/2019 - 13:17
          +1

          So OP may have some chance of getting that excess back if the insurance manages to get all the money (including OP excess) from other driver/insurance?

          • Typical16-bitEnjoyer on 08/08/2019 - 14:04

            @knobbs: Depends on the insurer. Quite a few charge unlisted driver and/or underage excess regardless who is at fault.

        • Ughhh on 08/08/2019 - 13:24
          +2

          You pay the excess upfront whether or not you're at fault

          It depends on which insurance. Allianz does this, but AAMI and SGIC don't.
          Not all insurance are the same.

        • anzacpaul on 09/08/2019 - 16:15

          This is not true of all insurers, though definitely some.

          I was rear ended, gave details on a Tuesday, Thursday car was listed as write off and money in my bank Friday morning. No talk of paying excess or anything like that.

      • Montyjpm on 09/08/2019 - 10:27

        At fault or not, we would not have to get to this point if OP son did not turn the key and left OP's driveway to start with.

  • mbck on 08/08/2019 - 12:47

    Non listed driver incurs extra excess charge

  • Faulty on 08/08/2019 - 12:48
    +2

    Thanks for your input guys. This is starting to make sense. I'll go with what they're doing in that case.

    • Davo1111 on 08/08/2019 - 12:55
      +2

      ….. read the pds …..

      • [Deactivated] on 08/08/2019 - 16:09

        Only if they made the PDS less wordy and more illustrations.

        • Baysew on 08/08/2019 - 17:25
          +2

          Another job for MS Paint.

          • [Deactivated] on 08/08/2019 - 17:28
            +1

            @Baysew: I'd read the shit out of that.

  • HighAndDry on 08/08/2019 - 13:05
    +1

    My son (19, on Provisional P2 license) is not listed on the policy as he does not drive the car often enough, public transport is his main method of getting around.

    Uh-huh…

    Last week, I let my son drive my vehicle to university.

    You didn't notify the insurer of someone who'd drive the vehicle (and who you reasonably could foresee would drive the vehicle). That person drove the vehicle and got into an accident (fault/not-at-fault irrelevant - you and your wife didn't get into any not-at-fault accidents either).

    • Montyjpm on 09/08/2019 - 10:35
      +1

      This is the reason why I always buy the insurance to cover (at least for the cooling period" before I drive away when I bought a car.

      • HighAndDry on 09/08/2019 - 11:13
        +1

        Yeah, I've literally sat in a car yard buying insurance on my phone before driving the car away.

        • anzacpaul on 09/08/2019 - 16:16
          +1

          In S.A at least, you can now transfer rego online. I bought a car, sat in the blokes driveway and transferred rego and bought insurance before I pulled out the driveway (had already done insurance quotes and saved to email)

  • Chochkee on 08/08/2019 - 13:29
    -2

    Shouldn't have told your insurer about the accident. And dealt with the other drivers insurance instead, as if you didn't have comprehensive.

    Best thing you can do is still do that, and then cancel your insurance and get a refund of the remainder of your insurance. It's not a claim on your insurance, unless you want the money quicker. But if the car is written off then you are basically paying $600 to get the car value back out of it, or getting the vehicle fixed.

  • Randxyz123 on 08/08/2019 - 15:11

    Try going directly through the insurance of the other driver (if they are insured ?)

    You’re much better off having a policy that covers unlisted drivers with a higher excess…

  • brendanm on 08/08/2019 - 16:15

    Claim on the other parties insurance.

  • whooah1979 on 08/08/2019 - 20:12

    Drivers not listed on the policy and living at the same address often have to pay an additional fee when filing a claim.

  • Love a bargain on 09/08/2019 - 14:04

    Think some insurers won't cover a family member (defined as someone living at the same address) unless they're a listed driver - this was probably introduced in response to people insuring not listing their kids as regular driver despite the cars are effectively the kids' cars, and then claim that the kid was only driving the car as a one off when they have an accident/ need to make a claim.

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