Will cost of car insurance go up if I accept compensation?

QA FEW months ago, my car was struck while parked in a shopping centre car park. The driver left a note on my window and asked me to ring a number.

When I rang, it turned out to be a car hire company. The car hire company told me to get quotes for the repairs and so on — however, it wanted to know so many personal details, I thought it was a scam and so I decided to let it go.

Weeks later, insurers for the car hire company tracked me down through my own insurer and asked again for me to get quotes for the repairs. I have been told the damage will be classed as a ‘cosmetic write-off ’. If I agree to the car hire company covering the cost of repairs, I am quite sure I will only receive a small amount of compensation for this cosmetic write-off. Even though this claim has arisen through no fault of my own (as I wasn’t even in the car), and is not going through my own insurance, could accepting any compensation push up the cost of my car insurance going forward?

I wasn’t even going to pursue the damage and am concerned about allowing such a small repair bill to go through the insurance process — particularly if it pushes up my own bill. Anne, north Dublin

MY UNDERSTANDING here, from the information you have provided, is that the damage is relatively small, and that you do not want to have the vehicle written off. I therefore believe the best way to move this forward is to ask a local garage or repair company to provide you with a quote to repair the vehicle.

You should then forward this quote to the rental company and request confirmation from it that you may proceed with repairs.

If the amount quoted for the repairs is fair and accurate, it is likely it will agree for the repairs to be carried out.

To address your query as to whether or not this will affect your insurance premium going forward, in my experience, your premium should not be affected. However, you should note that, as is the industry norm, you will be asked by most insurers when taking out any policy if you have had previous accidents or claims, regardless of which party was to blame. You should always disclose the fact you had a non-fault incident which the third-party insurer paid out for — and explain the circumstances as you have set out above. This should not affect your premium.

Costly new address

QI MOVED to an estate in Dublin recently — after commuting from Meath for a number of years. The move coincided with the time that my motor insurance was up for renewal. The renewal quote had already been posted to my old address. But when I rang my insurer to renew my quote, and advised of my new address, the insurer revised the quote and increased it by almost 40pc. Can my insurer do this? My new estate appears to be as safe as my old address. My insurer won’t lower the revised quote. Can I complain to anyone about this? Tom, Dublin

THIS is a very frustrating and recurring issue for motorists — but it is not uncommon. Each insurer rates areas differently — there is probably someone in the reverse of your position, who is currently moving from Dublin to Meath and is being charged an additional premium by their insurer for the change of address. Each of the insurers apply higher or lower rates based on location — even down to the street address.

Your change of address is happening at the time of renewal, so now you are in a position to simply move insurer to one that offers a better rate for Dublin than it does for Meath. You don’t need to show any loyalty to your current insurer — so shop around, as you should be able to find a premium closer to your previous renewal.

Third-party v comp

QI SEE the Central Bank has new motor insurance rules which mean I must get a quote for all types of cover — including thirdparty and comprehensive — when my insurance renewal comes up. I’m a young driver so I pay through the nose for comprehensive car insurance. If I could save a bit of money, I’d certainly consider thirdparty cover. But could I be at a big disadvantage if I’m in an accident and have third-party cover over comprehensive? Tadhg, Co Kerry

THIS is a very common question. Each policyholder must choose for themselves what suits their particular situation, and whether to pay the higher comprehensive price — or to take the lower price for third-party-only cover.

When making this decision, you must first ensure that you fully understand the difference between the three quotes you are being offered.

Third-party insurance is the minimum legal requirement to drive a car in this country. It will only pay out on the damage done to a third party in the event of an accident. Third-party, fire and theft cover also pays out on the damage done to a third party in the event of an accident — and, in addition, it pays out on a claim if there has been fire damage to your car, or if your car has been stolen. Comprehensive cover will pay out for all of the above — as well as for any damage to your own car as a result of an accident.

The second part of your decision will be based on personal affordability. The more you are covered for, the more you will have to pay in premiums.

When making this choice, you could also consider some other factors, such as any excess (the first part of a claim you pay yourself ) on a comprehensive policy — and whether or not the excess warrants the difference in premium.

You should also consider the effect a comprehensive claim will have on your renewal going forward.

Dual pricing grievance

QI GOT my motor insurance renewal quote yesterday. It was for €600 — including a 10pc discount for online renewal. I went on to the insurer’s website and searched for a quote for the exact same cover — but as a new customer, rather than an existing one. The quote came in at €400 — €200 less than the quote given to me as an existing customer. Why the €200 differential? Can I insist that my insurer offers me the lower price? Margaret, Co Kerry

IT IS always important for motorists to shop around for the best price and cover. Forget the renewal premium from current insurers — if they don’t want your business, move it elsewhere. I am going to guess based on the details provided that you are using a direct insurer. My advice is to contact your local broker. It should not only get you a better deal this year but, going forward, will do the work for you at renewal time so you don’t find yourself in this position again.