Reader question:

I’m going to move to a new car insurance company, but with the one I have now I have a history of at fault claims. Do I need to reveal this information to my new car insurance company?

Molly

Yes.

There might be serious consequences that you have to face when you go looking for a new car insurance company after a bad history, but unfortunately you just have to deal with them. It is possible that if you tell all of your claims history up front to your new car insurance company then you will have to pay higher car insurance premiums, or worse, they won’t even let you get a car insurance policy with them at all, but it’s even worse if you don’t tell the truth. Car insurance companies are allowed to cancel your policy at any time if they find out you gave them bad information, so even if you get a short period of cheap car insurance, once you’re found out you’re kicked out and that information will be on your report for other companies to see. This is also the case even if you just forget to mention something. If you do forget something, call as soon as possible to correct it before they find it themselves.

Here are the things that you have to tell them about:

• any previous claims, at fault or no
• any traffic violations

It isn’t a rare event that people don’t give the whole truth on their car insurance form; in fact, 20% of policy holders leave at least one thing out. Usually, it’s because they forgot. Occasionally, it’s because they don’t know what they need to tell because the agent doesn’t guide them right. Whatever the case, you can get in trouble for it.

Cheers,

Fashun Guadarrama.