Home insurance struggle after bankruptcy
Q I’M struggling to get home insurance as a result of being previously bankrupt. I emerged from bankruptcy two years ago, but some companies refuse to quote. What has bankruptcy got to do with insurance? Jim, Co Monaghan BANKRUPTCY is not uncommon — particularly since the recession. There were 473 bankruptcy adjudications in 2017 in Ireland, according to the Insolvency Service of Ireland — so you are not alone here.
However, your experience with insurers is not an anomaly — many of the mainstream home insurers will not provide cover to someone who has been declared bankrupt, as unfair as this may seem.
The good news is you will be able to get cover — you just need to know where to look. I must stress at this juncture that it is vitally important that you realise there is a legal requirement to inform your insurers about your bankruptcy. A lot of people in similar situations do not realise this and only find out when it is too late — that is, when they need to make a claim and their insurer refuses to pay out because the individual never disclosed their bankruptcy.
At this point, I would advise you to engage the expertise of a broker who can approach specialist insurers who can arrange cover for your home.
Cover for deer collision
Q I HIT a deer when driving home from work yesterday. It caused major damage to my car. A neighbour told me that my car insurance won’t cover the damage because insurers don’t cover damage caused by wild animals. Is that right? Joe, Co Kerry I’M not sure where this insurance myth originated but it always amazes me how many people have heard it. The good news is it is just a myth and you should absolutely be covered under your car insurance policy — as long as you have comprehensive cover, you will be covered for the damage caused, less any policy excess. (Excess is the first part of a claim you must cover yourself ).
However, even if an insurance policy covers the damage, the inconvenience of having to get the vehicle fixed and submit a claim and so on is still a headache. So it’s worth remembering to slow down in areas where deer are known to gather because their adherence to the safe cross code isn’t always what it should be.
Unaccompanied driver woes
Q MY daughter is a learner permitholder. She had an accident recently — fortunately, no one else was involved but there was about €3,500 of damage to her own car, which she made a claim for. The insurance company sent her a claim form and it requested confirmation of the details of the full licence holder who was accompanying her at the time of the incident. Her boyfriend was in the car with her at the time of the accident and he had told her he was a full licence holder, but it turns out he is also a learner permit holder. Now she has been told that the insurers will not pay for the damage. Can the insurers refuse to pay as she was genuinely under the impression he had a full licence? Noel, Co Galway IT does seem that your daughter was trying to do the right thing and have a full licence holder present with her whilst driving. However, these situations are becoming more common, with some insurers now taking a hard-line approach and refusing to pay claims where the driver is a learner permit holder and the claim occurs without having a full licence holder in the vehicle at the time.
Unfortunately, the fact her boyfriend does not have a full licence will most likely mean she will not have her claim paid by her insurer.
Damage by joyriders
Q I WAS recently rear-ended by some joyriders. They drove into the back of my car twice before speeding off. There were a couple of witnesses, but no-one got the car reg and there was no CCTV in the area either. It’s going to cost more than €2,000 to repair the damage on my car. As we can’t trace the liable parties, will I have to foot the bill myself ? Lisa, Dublin city I’M not sure if your car has comprehensive cover or just cover for third-party, fire and theft so I will try to answer based on both circumstances. If you have comprehensive cover on your own car, you can claim for the damage and it will be covered — less any policy excess.
Depending on the type of policy, this could impact your no-claims bonus. If you do have comprehensive insurance and your bonus is affected by this claim, when it comes to your policy renewal date, I would advise that you go to an insurance broker, explain your situation and then ask it to liaise with an insurer on your behalf. A broker will be well used to communicating with insurers and will be able to explain the circumstances of your claim, with the hope of reaching an agreement with an insurer who will still afford you the benefit of a no claims bonus.
If your cover is third-party, fire and theft only, then unfortunately, there is very little you can do but pay for the damage yourself. In certain circumstances, you may have recourse to make a claim to the Motor Insurance Bureau of Ireland (MIBI) — however, this is usually only in instances of a personal injury claim, rather than damage to a vehicle. You can find more information about this on the MIBI’s website (mibi.ie)
Insurance for small van
Q I OWN a car and my boot is too small. As I have lots of sports gear, I want to buy a small van as well — for when I am going to my sports and hobbies. But as I have a car, I cannot get an insurance quote on a van because it’s not for business. Why is this? I’m 45, I’ve never had any penalty points and I’ve a full NCB. Is there any way around this? I was thinking of selling my car and just buying a Toyota Proace 1.6-litre van — again not for business use. The van has carbon dioxide emissions of 144g per km. But I’ve heard the motor tax would not be €390 because the van is for personal use — is that correct? John, Co Meath THIS is a common question we get asked and is a minefield of complications. As a van insurance broker, we have relationships with insurers specialising in this area which means that in certain cases, we can arrange van insurance for personal use — but it’s not straightforward, which is probably why you have found you have met obstacles straight off the bat.
Getting cover will generally depend on your occupation and your previous driving experience. A declaration to confirm the vehicle has been purchased for private use may also be required. From the information you’ve provided, it appears you would be deemed by insurers to be a ‘low-risk’ motorist so you should be able to get a policy at a price that is not prohibitively expensive.
In relation to the motor tax, as the van is for personal use, it must be taxed as a private vehicle. You cannot avail of the commercial vehicle tax rate without a proven valid commercial use for the vehicle.