Your insurance renewal is declined!!

peckhs · Dec 17, 2009

hi, checking on behalf of my friend
his current insurance company, AXA has declined his renewal.
reason being he has had 4 accident claims in the last 2 years. total amount paid out and reserved is about $18.7k...
he still has outstanding loan with a finance company.
the issue now is he can't get a new insurance, can't renew his road tax...
is his only option to settle with the bank and retake a new loan??
anybody can help??
tks

ucypmas · Dec 17, 2009

Re: Your insurance renewal is declined!!

How will settling with the bank and having a new loan help him get a new insurance? It won't.

The only chance is for your friend to call as many other insurance companies as possible and see if any of them are willing to insure him at any price. If he is

Slater · Dec 17, 2009

Re: Your insurance renewal is declined!!

even if an insurance company were to take him in his premium will be off the charts!

astrid · Dec 17, 2009

Re: Your insurance renewal is declined!!

Assuming you've tried all other insurance companies and all will not take you in.

Then worst-case resort will be for him to 'sell' his car to his wife.
Have wife take up insurance on the car.

Family impact: Car is now second-owner (00 to 01).
But they get to keep the car, and he continues to drive it!

Nowadays, no more 'Named Driver' thingy already.

astrid · Dec 17, 2009

Re: Your insurance renewal is declined!!

BTW, that's what I did when I got my son a new car recently.

iScoupe · Dec 17, 2009

Re: Your insurance renewal is declined!!

2 accident in 3yrs is standard guideline to decline.... ur friend 4 accident in 2yrs.... try sell car if not appeal for super high premium.

got a client 3 accident in 1yr, declined, transfer car to spouse, need pay outstanding loan LL.

ucypmas · Dec 17, 2009

Re: Your insurance renewal is declined!!

I bought insurance for my car recently with me as proposer and my wife as additional named driver for the car. Even paid a bit more (a few dollars) for this. Surely there is a purpose of having this on the form.

For example if someone takes your car and runs it into somebody else will there be any implications on the proposer (the insurance holder) if the person is not part of the people named to drive the car? Well I don't know.... cos there should be.

Also IScoupe - do you need to transfer the car to spouse before insurance can be issued? I think the wife can just go and take up the insurance without having ownership of the car? From what I have found out recently...

LTA don't care who owns the car they just want to see an insurance cert before they allow road tax to be renewed (or any transfer to take place)
Insurance co don't care who owns the car they just want to know details of the person taking up the insurance and type/age/cc of car

Probably your friend should not be the named driver as the premium will probably be sky high if he is...

astrid · Dec 17, 2009

Re: Your insurance renewal is declined!!

I registered two new cars recently, one in Sep09 for my son (under my name) and another in Nov09 - my own purchase.

Both times, under AIG, no need for named driver.

I enquired about it in Sep09 (since the last time my wife bought hers was a couple of years ago, it was a requirement then), but AIG advised that there is no need for such a thing any more now ..... even if I had insisted for it.

When I got my new car in Nov09, I clarified once more and was told again, that named driver is a thing of the past, no longer required anymore.

ucypmas · Dec 17, 2009

Re: Your insurance renewal is declined!!

Hi Astrid,

Thanks for the clarification. I suppose your info is quite current you should be right.

iScoupe · Dec 17, 2009