In this series on finding car insurance we would like to take the potential client through the process of acquiring a car insurance quote – from the very start to signing on the dotted line. We would like to do so in an insightful but easy to understand manner, not only to provide an easy solution – but also to shed some light on why we provide the advice we would like to offer.
Car Insurance and making disclosures
The vehicle owner will only be able to find car insurance if he discloses a few secrets about himself. A car insurance contract is an agreement between a vehicle owner and an insurance provider that the insurer will provide cover in return for a [monthly] premium from the vehicle owner. This premium is calculated and quoted by the insurer after taking into consideration all the risks of insurance claims.
Calculating the risk of an insurance claim
The car insurer will take into account all the material facts to calculate the premium payable. Most of these facts are only known by the vehicle owner – and it is required that they be disclosed by the vehicle owner.
We would distinguish between the information only known by the vehicle owner, and the facts known by the insurer.
Material facts only known by the vehicle owner when applying for car insurance
These facts would include the following:
- Name and surname
- Home address
- Identity number
- Years driving experience
- Accident record and info on traffic violations
- Driver impairments etc
- Make and model of vehicle
- Colour of the vehicle
- Kilometres on the clock/odometer
- Whether vehicle has been in an accident
- Whether vehicle is to be insured at market value
- Vehicle security features
- Whether vehicle is for personal or business usage
- Who the regular drivers will be
- Estimated distance to be travelled
- Where vehicle is to be kept / garage etc
Material facts to be established by the car insurer
Not all the material facts are known only by the vehicle owner. The car insurer will have specific risk models to enable the insurer to calculate risks. The car insurer will have available information on the following:
- Vehicle accident statistics
- Vehicle crime statistics
- Geographical information and statistics pertaining to this specific area
- Vehicle market and replacement values
- Cost of vehicle repairs
- Cost of processing insurance claims
- Details on effectiveness of vehicle security systems and tracking companies etc..
Full and Complete Disclosure as requirement for Car Insurer
If you would like to find car insurance – You will need to disclose all the material facts to the car insurance company. Failure to do so might not only lead to a finding of car insurance fraud, but will also result in your claim being dismissed and the contract declared null and void.
The car insurance contract is an agreement based on good faith – and requires obligations from both parties. There should be no secrets when it comes to the obligation of full disclosure. Once you are ready to disclose all that is required – we can continue with the next step towards finding car insurance!!