My daughter started her first insurance policy in her own name in July this year. She's 19 and has had a full license since January 2003. The policy is with Tesco and cost just over £800 fully comp for a 2002 Peugeot 106. Unfortunately today she hit a 5 door Clio and damaged both doors on the drivers side. As contact was the rear corner of the Peugeot it has only suffered a broken rear light unit.
The other driver was very understanding and is going to get an estimate for the repairs and let us know how much it is so we can decide if it needs to be an insurance claim.
In order to come to a decision, does anyone know how much Tescos are likely to load the renewal next year if a claim is made?
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>>does anyone know how much Tescos are likely to load the renewal next year if a claim is made?
No, but it probably won't be pretty. In order to work out what the quote is likely to be, ring Tescos and ask for a quote. Not as an existing policyholder, but as a new person giving the details changing your daughters record, age, age of car, car value, etc. etc. as if you were asking for the quote in a year's time - that will tell you the likely premium.
Then do the same again without the claim to work out the difference.
And then you need to add the following; with the gross premium extrapolated from the two quotes you obtained again.
Figure on the gross premiumreturning to normal after 2 years.
No accident
1 year renewal with £800 as gross, 30% bonus = £560
2 year renewal with £800 as gross, 40% bonus = £480
3 year renewal with £800 as gross, 50% bonus = £400
4 year renewal with £800 as gross, 60% bonus = £320
5 year renewal with £800 as gross, 60% bonus = £320
Total 5 years no accident = £2080
No accident
1 year renewal with £1000 as gross, 0% bonus = $1000
2 year renewal with £1000 as gross, 30% bonus = £700
3 year renewal with £800 as gross, 40% bonus = £480
4 year renewal with £800 as gross, 50% bonus = £400
5 year renewal with £800 as gross, 60% bonus = £320
Total 5 years no accident = £2900
Difference = £820
So the final cost of a claim using fantasy figures;
5 years no accident = £2080
Accident
25% loading on premium = £820
difference in bonus levels = £240
excess of £250 = £250
Total cost of claim = £1310
Cost of not making a claim
TP uninsured losses (temporary car, loss of wages, etc.) = £500
TP Repairs = £500
Own repairs = £100
Cost of paying yourself = £1100
These are, of course, fantasy figures and you should insert your own real ones.
Also take into account that if she was likely to upgrade her car in the next couple of years that could increase the impact.
Also bear in mind that a second claim would blow it out of all proportion.
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What loading of the a premium might you expect when you report the accident but say you won't be claiming. ISTR most applications ask about 'accidents' as well as claims. My policy says accidents should be reported as soon as possible.
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For a single event, usually nothing. I did say "usually".
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Here's something to throw a spanner in the works.
My "friend" who has crashed a number of times in 1 year (her first year) for some reason or other, had to switch insurers because I think she was insured with Vauxhall. Anyway, that's irrelevant.
The most notable crash was exiting out of Uni, onto a road, on which a Porsche Cayenne was traversing. She pretty much wrecked the front end of the car. How much was her premium with 2 claims and not even 1 years insurance? (She passed at Christmas)
Get ready
£1200
I'll be lucky to get that in my third year of driving with (hopefully) no claims.
That to me, is, quite frankly ridiculous.
/Rant over
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Adam
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