Van Insurance, False Information and Validity of the Policy

One huge problem currently faced by motorists is the cost of motoring. With fuel prices hitting the roof, maintain a vehicle has become an uphill task. In particular, the credit crunch interjected to further hike the prices of all essentials, including car or van insurance.

Preference for four wheels

In a bid to find a way round the problem of soaring motoring expenses, some motorists have chosen to switch to cycling, especially in major cities like London. Bicycles have numerous advantages. Apart from saving one the trouble of fuel and its soaring cost, bikes are easier to maintain and attract cheaper insurance premiums and constitute no hazard to the environment. But bikes have their own shortcomings. At the moment they are easy targets to thieves who could tears down locks and make away with them at will. Tory leader David Cameroon recently had a bad experience with bike thieves. Yet bikes present a far cheaper option for motorists. Nonetheless, many would still prefer their car or van.

To keep a van or car on the road there is the corresponding need to ensure that every documentation is valid. Licence and insurance cover are a must, amongst other things. But the big issue is that a rising number of motorists are seeking the simpler way out by not purchasing the cover. Even van drivers, whose vehicles are used to keep business afloat as delivery or tradesmen, are sometimes found wanting.

Uninsured motorists and call for tougher action

The problem of uninsured drivers is estimated to cost the country a huge sum of money each year. Recent studies put the cost at £500 million annually, which insurance firms say adds up to £30 to the premiums of each law abiding motorist.

The fact that criminal records and penalty fines have not deterred motorists from dodging insurance is leading to increasing demand for stiffer penalties. This week saw the Association of British Insurance adding its voice to it, arguing that penalty fines do not cover the cost of cover lost to evasion.

“The penalties do not reflect the seriousness of the crime and do not act as sufficient deterrent and this has been the case for some time,” explained spokesman for the body, Malcolm Tarling, as he made a case for a stiffer penalty.

Inaccurate information and your policy

Van insurance has equally seen several other devices being employed by drivers to evade paying the required premiums for policies. There are those that, in a bid to bring down the price, fail to give insurers accurate information in respect of their circumstance. This could range from withholding information about who the actual insured driver is to the condition of their driving licence. In one instance a driver recently had his policy invalidated because he was alleged to have failed to disclose to the insurer that he had penalty points on his licence. Even as he tried desperately to explain that he did inform the insurer about it while taking out the cover, they could not recall this. Although this is a matter that could be resolved by checking records, the truth is that insurers are playing very safe because fraudulent characters had in the past made them pay hugely. Avoiding a repeat of such ugly experience is not entirely out of place.

Perhaps what van drivers could do to help make their premiums cost a bit less is not to fail to disclose vital information to insurers. They need to reveal their circumstance, including past convictions. More importantly, to enjoy cheaper, more suitable premiums they need to compare deals.