My son who is on his green plates was with Budget. He had a small ding in a car park because woman was parked illegally. Her car valued at high end. Small paint scratch supposedly requiring $2,000 to repair. We did not know at the time that it would have been better for him to not claim through Budget but rather just pay for the job. Budget did not advise to not claim. He received a letter from them soon after saying they were not renewing his insurance yet said he still had a no claim bonus rating of 6. Each time I have tried to reinsure him all insurance companies deny him insurance when I tell them what happened. He is a safe driver and no points off his license. Got him comprehensive insurance on the phone recently - they did not ask if any previous claims. However when I read the contract it stipulates the insured person has made no previous claims. I am in the ethical dilemma of letting them now know and risking them dropping not only the comprehensive but his 3rd party. Any help much appreciated.
NSW Green P plate license insurance denied
- Thread starter linda jones
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You may not be able to do much about the lack of available insurance - the insurance industry is one that is permitted to actively discriminate against people based on things like age. And they also generally don't like to make exceptions for individual cases. If they did, there would be no end to how far that could go. It's always important to remember that an insurer is not your friend despite what their ads may say, and they are there to make a profit.
With respect to the insurance you have found, you are required to disclose the claim under the law. The Insurance Contracts Act has:
- A requirement that the parties act with the "utmost of good faith" towards each other; and
- A positive requirement to disclose to the insurer any matter which you know to be relevant (unless it diminishes their risk, is common knowledge, they already know it, should already know simply because they are an insurer, or they waive the duty of disclosure).
If you fail to do so, you could run the risk of them refusing a future claim and cancelling the contract.
With respect to the insurance you have found, you are required to disclose the claim under the law. The Insurance Contracts Act has:
- A requirement that the parties act with the "utmost of good faith" towards each other; and
- A positive requirement to disclose to the insurer any matter which you know to be relevant (unless it diminishes their risk, is common knowledge, they already know it, should already know simply because they are an insurer, or they waive the duty of disclosure).
If you fail to do so, you could run the risk of them refusing a future claim and cancelling the contract.
Thanks Rob. so what do we do given that third party insurance is compulsory if no insurance company will provide him with insurance?
There is where some people get confuse. There are two different type of third party insurance.
compulsory third party insurance (ctp) or 'greenslip', as it's most commonly known as in NSW, is something all vehicles are required to be covered by in all states within Australia.It provides the driver cover for any legal liability for injury and death as a result of an accident for which the insured is responsible.
You can also have third party Insurance and I event of an accident for which you are deemed liable the other person car damage is covered but not your car you have to pay to have you car fix yourself, but it additionally includes insurance for your own car if it is stolen or damaged by fire. You would also be able to make a claim if your car were damaged in an attempted thief.
The ctp is compulsory and you can't drive on the road and come included in your rego well in qld it does. The second one is optional but is always a good idea to have as you know not matter what the other person car is covered in a accident
compulsory third party insurance (ctp) or 'greenslip', as it's most commonly known as in NSW, is something all vehicles are required to be covered by in all states within Australia.It provides the driver cover for any legal liability for injury and death as a result of an accident for which the insured is responsible.
You can also have third party Insurance and I event of an accident for which you are deemed liable the other person car damage is covered but not your car you have to pay to have you car fix yourself, but it additionally includes insurance for your own car if it is stolen or damaged by fire. You would also be able to make a claim if your car were damaged in an attempted thief.
The ctp is compulsory and you can't drive on the road and come included in your rego well in qld it does. The second one is optional but is always a good idea to have as you know not matter what the other person car is covered in a accident
Thanks Homer Jay. Yes, I understand all that. My conundrum is what to do if an insurance company refuses to insure for 3rd party based on a tiny scrape of paint and us being too ignorant to just pay for the damage rather than claim it. The claiming of it was what triggered the insurance company to not renew his insurance
I haven't been in this situation for years (thankfully), but will be heading into it in a few more... I can only imagine there are insurance companies who will offer you an insurance policy at a premium that is probably outrageous. Alternatively, you could try approaching an insurance broker to see if they are able to assist you.
Another alternative is that you might be able to arrange insurance in your name with your son as the primary nominated driver.
Another alternative is that you might be able to arrange insurance in your name with your son as the primary nominated driver.
Thanks Rob, much appreciated. I just catch public transport. Never driven. Opal cards never give me grief. This whole car business is a steep learning curve through my son. Glad you know all the pitfalls and will be spared any of this. Thanks for your time and best wishes
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