Insurance premiums

[rockmate]

Is it standard practice for motor insurers to demand back premiums if undisclosed speeding points are discovered? A friend originally unaware of the legal position disclosed to her insurer 3 points from almost 3 years ago. She has not had a claim in the 6 years she has been with them but they are demanding back premiums since the date of her conviction on the basis they would have charged a higher premium if they had known.

[angel-cake]

Don't really see how they can make her pay for a product that is now theoretically out of date. She should just change to another insurer if they are causing problems.

[Buenchico]

Your friend has 'obtained a pecuniary advantage by deception', which is a criminal offence and also gives rise to a civil debt in respect of the excess premium which was avoided due to not declaring the points.

If she does not pay the 'back premiums', the insurers could seek to recover the money through the civil courts. (Irrespective of whether she repays the money they could refer the matter for criminal prosecution, although this is very unlikely).

However, your friend's biggest problem, if she fails to repay the money, could simply be that the insurance company might refuse to insure her. If so, she'd have to answer 'Yes' to the question, from other potential insurers, which asks 'Have you ever been refused insurance'. That could make it very difficult for her to get insurance; she might find that her new premium is 2 to 3 times the current level. It would cost her far less simply to 'pay up' what she owes to her current insurers.

Chris