Car Insurance Renewal Declined after 1 Claim

Butt Scratcher on 29/06/2022 - 12:18

In my 10 years of driving, i have never made an insurance claim up until recently.

The accident may seem odd, but I was side swiped and literally 10-15 minutes later I rear ended someone by accident (was still a bit rattled).

Long story short, the first accident my insurer sided with me but I was obviously at fault for the second claim.

2 months later they refuse to renew my policy, which in itself isn't a big deal but now I will have to disclose with other insurers because of this question:

"In the last 3 years, have you or anyone to be insured under this policy had an insurance policy declined or cancelled, a renewal declined, special terms imposed, or had a claim refused?"

Seems a bit harsh, has anyone else had similar experiences? I'm planning to just get third party insurance now.

I was with virgin/auto general and had comprehensive.

Automotive Car Insurance Insurance

Comments

    • CodeXD on 29/06/2022 - 12:24
      +10

      If they ask you still have to disclose it

      • MS Paint on 29/06/2022 - 12:29
        -3

        Of course. I worded it poorly.

        • mbck on 29/06/2022 - 14:09
          +4

          You don't have to disclose it.

          What?

          • iDroid on 29/06/2022 - 14:49
            +4

            @mbck: Well technically you don't have to disclose it, but on that same note they also don't have to honour any insurance claim if you do fail to disclose it.

            • RetroGameNerd on 30/06/2022 - 17:52

              @iDroid: Most (if not all) insurers have a "duty to take reasonable care to not make a misrepresentation", which can completely (and definitely would in this case) invalidate policies if it's found that an insured misrepresented.
              So while you don't have to disclose it, it would be extremely unwise.

    • akyeeeahdude on 29/06/2022 - 19:19
      +2

      MS Paint is correct in terms of there being a claims database that insurance companies can refer (Veda maintain it) to but not all insurers use it and I'm even aware of some that do but the Claims staff members often won't lodge the claim their insurer/employer is paying.

      Disclosure is important (duty of disclosure - see Insurance Contracts Act) and MSPaint's advice that you don't have to disclose it is incorrect. I can share that I am aware of an insurer who is (or at least was) checking the Veda database for when customers would complete a quote and if they didn't disclose the claim/s on their Veda file, as part of the quote process, a significant loading would be applied to their price. It's a bit of a sensitive matter as this check wasn't disclosed to the customer upon commencing the quote - I found it after requesting a copy of my Veda insurance claims file as he also records any insurance quotation claims history checks.

  • Euphemistic on 29/06/2022 - 12:24
    +5

    It’s not unusual for budget/online insurers to just reject you based on previous claims. That’s one of the ways they stay cheap(er)

    • AndyC1 on 29/06/2022 - 12:57
      +5

      Auto general group are the worst. Get off them what the reason is.

      Give AAMI a call as they are allot better IMHO than auto general.

      • Yummy on 29/06/2022 - 15:22
        +2

        Give NRMA a call as they are allot better IMHO than AAMI.

        • orangetrain on 29/06/2022 - 20:02
          +1

          Go back to giving AAMI a call after seeing NRMA's quotes..

          • Yummy on 29/06/2022 - 20:19
            +1

            @orangetrain: Then go back call NRMA when you experienced unhelpful customer service and difficulty in claims with unlucky-you-with-AAMI.
            Pay few bucks more, headache free.

            Former member here.

            • orangetrain on 30/06/2022 - 08:34

              @Yummy: For me, it's almost half a grand more with NRMA. I haven't had issues with AAMI

            • ColtNoir on 30/06/2022 - 09:30
              +3

              @Yummy: My family was with NRMA for the past 20 years paying through the nose.

              The first accident they had it was like getting blood out of a stone. They’re not what they used to be.

              I’ve had nothing but good dealing with aami.

              • kerfuffle on 30/06/2022 - 09:33

                @ColtNoir: Interesting; I'm with NRMA and have had 4 (or 5 if found not at fault with the latest one where my car got written off) accidents and didn't feel it was like getting blood out of a stone. Would insure my new car with them.

      • Jugganautx on 29/06/2022 - 16:19

        i cant believe you just suggested one of, if not the worst insurer anyone can give their money to. 1.5 hr hold times just to speak to someone thata not from bangladesh call centres. Good luck if you ever need to claim with theem

        • AndyC1 on 29/06/2022 - 16:23
          +1

          At least I made a suggestion.

          I have not had any non Australian answer the phone (proper Ozzy accent and not a fake one from Bangalore). Worst hold time I have had was 20 minutes, average about 2 minutes.

        • md333 on 30/06/2022 - 13:17
          +1

          I had a claim with AAMI a couple of years ago. No problems at all. Didn't even need to phone them, all done online.

  • Baysew on 29/06/2022 - 12:25
    +13

    Car Insurance Renewal Declined after 1 Claim
    I was with virgin

    Insurance company name checks out.

    • iDroid on 29/06/2022 - 14:50
      +9

      Yes they only insure virgins. Once you get smashed up they're no longer interested.

  • Yuddenator123 on 29/06/2022 - 12:29
    +1

    That's a bit rough that they declined your renewal after 1 year? As someone who works in the Insurance industry and has experience in Motor that's very peculiar.
    Have you had a frequency of claiming in the past?
    Were these your first times claiming?

    Seem very odd for the insurer to be declining, and doesn't see to be massive claims $ either?
    As insurers what else are they expecting, the coverage is literally for accidents and claims is their product, which is disappointing to hear

    • Butt Scratcher on 29/06/2022 - 12:43

      I feel it is way too harsh to lump me in with people who have had insurance policy declined/cancelled.

      Yes, it was my first year with this insurer. Previously I had 2 years comprehensive with AAMI until they jacked up my premium excessively for no reason.

      As I said, never made a claim. Not even one where I was not at fault.

      Seem very odd for the insurer to be declining, and doesn't see to be massive claims $ either?

      That's what pissed me off the most. The other car I did about 500-600 in damages (was sent the bill). On my car, it was probably about 5k-7k in damages. I paid 2.4k in excess (did not think I would ever have to use it considering my history) that's in addition to the 1.2k I paid for the policy.

      • Yuddenator123 on 29/06/2022 - 12:45
        +1

        Yeah that's BS!
        What reason did they give you for declining and how long of a notice did they provide you?

        Probably a silver lining, Virgin / Auto General definately not one of the better insurance firms.
        Better to change to someone else who can give you better service and actually provide what they offer - paying for claims in the event of an accident!!!

      • AndyC1 on 29/06/2022 - 13:03
        +2

        Something is not right. Why did you have to pay 2.4K in excess?

        • kerfuffle on 29/06/2022 - 13:06
          +2

          Maybe they picked the highest excess to lower their premium

        • Butt Scratcher on 29/06/2022 - 13:08

          Picked the highest excess. I was quite honestly surprised i could slide it that far, because previously with aami i couldnt slide it that far

          • kerfuffle on 29/06/2022 - 13:09
            +2

            @Butt Scratcher: Bold move to pick the highest excess …

            • Butt Scratcher on 29/06/2022 - 13:21

              @kerfuffle: The justification in my mind at the time was if I went for another 10 years without a claim, I should be a lot better off.

              The people repairing my car apparently had to call up the insurance to confirm that amount too

              • kerfuffle on 29/06/2022 - 13:25

                @Butt Scratcher: Bold move to assume you won't make a claim for ten years …

                I've been in four not-at-fault accidents (and the fifth one allegedly not-at-fault; insurance still trying to figure that out) between 2015-2022 in my old car alone and I've been driving for about 18 years now. You can't predict what will or will not happen. I certainly didn't expect my car to be written off two months ago.

                • Butt Scratcher on 29/06/2022 - 13:35

                  @kerfuffle: If I assumed that I wouldn't be making a claim in the next 10 years, I wouldn't even buy insurance…

                  • kerfuffle on 29/06/2022 - 13:38

                    @Butt Scratcher: I have comprehensive insurance not because I don't think I'll make a claim, but in case someone hits me and is at fault and stuffs me around (which has happened before). My insurance can do that for me.

                    Or if I accidentally hit a Mercedes or something

            • md333 on 30/06/2022 - 13:14

              @kerfuffle: As I see it I wouldn't bother insuring a $2400 car, so $2400 excess is quite acceptable.

      • SF3 on 29/06/2022 - 20:18

        it was probably about 5k-7k in damages

        What car is it? It could in a higher risk category to insure.

  • silenthillrocks on 29/06/2022 - 12:35
    +2

    Did they give any justification for refusing to renew it?

    • Butt Scratcher on 29/06/2022 - 12:45

      Nope, none. Ill see if I can get an answer from them

  • Fredfloresjr on 29/06/2022 - 12:35
    +1

    You de-Virgin…d them. So yeah.

  • kerfuffle on 29/06/2022 - 12:39

    I don't get how you were at fault for being rear ended? Unless you didn't have flashing indicators on or something.

    • Yuddenator123 on 29/06/2022 - 12:41
      +1

      OP rear-ended someone else

      • kerfuffle on 29/06/2022 - 12:42
        +1

        Oops, I can't read. Thank you!

  • Typical16-bitEnjoyer on 29/06/2022 - 12:43
    +2

    Obviously cheap insurances "resellers" like Virgin will offload customers that are costing them money…

  • DingoBlue on 29/06/2022 - 14:23
    +1

    Normally any sizable claim or payout would be handshake, goodbye, end of relationship. They don't really care about your feelings or future endeavors. At best your renewal would go up substantially, even if you pay extra for "no claim bonus protection".

  • GordonD on 29/06/2022 - 14:33
    +1

    To be honest, I'd be more than a little bit suspicious of someone who hadn't made a claim in 10 years who then had two crashes in 10-15 minutes, especially when the second of them was their fault. I'd wonder if the second one was done deliberately to cover up something that making a claim for the first one would reveal.

    • Butt Scratcher on 29/06/2022 - 14:38
      +2

      Feel free to come up with theories, that's why I pointed it out as possibly being odd

      The side swipe was from mid section to back and the frontal collision was at the front, completely separate sections.

      Frontal collision from the outside they basically only replaced the bar. Side swipe the passenger door and panel behind it was replaced

      Also bear in mind they are treated as separate incidents, so it is not as if I turned 2 claims into 1. I personally am not seeing it.

  • WreckTangle on 29/06/2022 - 14:41
    +1

    Must have been quite a day

    • Butt Scratcher on 29/06/2022 - 14:52
      +3

      It was. After the second incident I realised how rattled I was.

      Stopped at a 7-11 for 45min - 1hour to calm down a bit.

  • USER DC on 29/06/2022 - 15:10
    +2

    exactly why i dont spend a single cent on these money pitholes

    • [Deactivated] on 29/06/2022 - 17:28

      isn't insurance mandatory?

      • Yuddenator123 on 29/06/2022 - 17:29
        +1

        nope

        • kerfuffle on 29/06/2022 - 17:31

          Third party that covers damages is not compulsory, yep. Third party that covers injuries and medical stuff is compulsory.

      • USER DC on 29/06/2022 - 17:35

        The compulsory insurance is already included in the car registration costs (at least in SA) that one ofcourse cannot be escaped, (given you are needing to drive a car lawfully)

    • Euphemistic on 29/06/2022 - 17:41

      None? Where’s your post whinging about being hit and they don’t have insurance.

      I hope
      1. Your are a VERY good driver
      2. You can afford to replace your car if it’s written off by someone else,

    • qwerty-4321 on 30/06/2022 - 11:01

      What happens when you're at fault in a nasty accident and the other party's insurance sues you for every dollar you're worth?

  • Arcticsoldier on 29/06/2022 - 17:45
    -4

    First accident didn't cause enough damage for a write-off? You made the choice to drive after being in an accident then hit someone else 15mins later with the excuse "didn't know how rattled I was". I think the insurance company rightfully decline to insurer you again.

  • DarkOz on 29/06/2022 - 18:40

    I am interested to know how much was the premium for last year and how much was the claim. The figures might explain the decision not to renew.

  • yzha3917 on 30/06/2022 - 08:53
    +6

    Yep been there.

    You can try AFA to overturn insurance decision.
    You can discuss this matter with Financial Rights Legal Centre with no cost.
    I tried but no success.

    Try RACV in Victoria or equivalent if you are in other states.

    If you have concession card (I did, during Covid period), you can apply for Essentials by AAI for car insurance. They don’t ask, but the total insurance amount is limited.

    Note, this is renewal refusal affects a few things, not just car insurances.
    For instance, I could not get pet insurance nor house insurance from other providers. You will need to stick with RACV or equivalents. But they do not provide every type of insurance.

    But this refusal does not affect your credit score in any way, private health insurance is not affected neither.

    Different insurance providers have different policies. My understanding is AAIM is actually the most lenient one, only checking 3 years history. Some providers ask for 5 years and others ask for lifetime.

    I learnt most of above info on this forum actually.
    I wanna say thank you to OZbargainers on this forum. They are really helpful and considerate.

    But some of them are harsh and smart-ass. Full of hindsight and self-righteousness. Don’t be affected by them. Don’t argue with them, it’s pointless.

    You will be fine.

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