Demerit points without conviction and insurance rating

EMP
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Demerit points without conviction and insurance rating

Postby EMP » Mon Mar 16, 2009 8:35 pm

My Karen St red light charge was proved and dismissed, so I've accrued demerit points without a conviction or a fine. If I get a quote from an insurance company in the next 2 years (since it's taken a year since the offence to go to court) and they ask me "any demerit points" do I have to tell them about these, which would probably reduce the rating they would give me? Does it matter that there was no conviction and no fine?

Can the insurers actually check someone's demerit points with VicRoads anyway, or is it only if they take you to court that they can find this out?

On an unrelated note, I noticed that some insurers, if you tell them about not-at-fault accidents, will still give you rating 1, but will quote a higher premium than if you do not tell them about those accidents! :o Are they legally allowed to do this? It seems pretty dodgy to me - like they're trying to sneak in an extra premium for something that isn't your fault without you noticing.

Hardy
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Postby Hardy » Mon Mar 16, 2009 8:53 pm

Essentially your obligation is to give honest full and frank answers to any question asked by an insurer. They might ask you whether you have committed any offences over the past 5 years. The question may or may not refer to demerit points. Whatever the question is, give your best answer, and if you do not know the answer, then don't give an answer.

So if the question is "Any demerit points" (highly unlikely question!) then the answer is "yes" because these points will stay with you for the rest of your life.

The insurers will check your driving record after you make a claim and then they will determine whether or not you lied in your application for insurance.

If you have accidents that you do not tell them about, you put your insurance cover at risk. They simply won't pay out if they think you have mislead them.

I noticed that some insurers, if you tell them about not-at-fault accidents, will still give you rating 1, but will quote a higher premium than if you do not tell them about those accidents!


So people who have never had an accident are charged a higher premium than those who have had accidents? That is nonsense.

Comrade Ash
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Postby Comrade Ash » Mon Mar 16, 2009 9:03 pm

I wasn't aware that any insurers enquired as to demerit points, only licence suspensions, claims and/or accidents.

EMP
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Postby EMP » Tue Mar 17, 2009 12:27 am

Thanks. The exact question isn't "any demerit points", of course, but I have been asked something like "have you had any licence suspensions, disqualifications, cancellations or incurred any demerit points in the last 5 years"?


Hardy wrote:
I noticed that some insurers, if you tell them about not-at-fault accidents, will still give you rating 1, but will quote a higher premium than if you do not tell them about those accidents!


So people who have never had an accident are charged a higher premium than those who have had accidents? That is nonsense.


No, of course not. What I was saying is that people with some not-at-fault accidents are charged a higher premium than people with no accidents, even though both are given the same rating (which in my case is rating 1).

That seems quite unfair and misleading to me, because until I saw this, I believed that your risk to the insurer is quantified by your rating. Most people would naturally assume that if they're given rating 1 then they're getting the lowest premium available (from that insurer for that car, excess, etc.) when in actual fact there's another factor involved.

Hardy
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Postby Hardy » Thu Mar 26, 2009 5:43 am

Insurance companies can charge you whatever they like. That is why people shop around.


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