Norwich Union helps motorists to keep their cover

Norwich Union is launching a drive to help its customers and other motorists to better understand important changes to their motor insurance policies, and ensure that any changes in their personal circumstances are shared with their insurer to keep their motor cover up to date.

Whether purchasing insurance direct or through a broker, motorists need to let their insurer or agent know when their situation changes. Failure to do so could result in voiding the insurance policy. Examples of changes that motorists need to communicate are:Change of address: many motorists forget that a change of address can affect their motor premium. This is especially true if the car will be parked on the street at the new address. If, for example, the car was previously kept in a garage, but is now parked on the street, failure to let the insurer or broker know of this change could result in loss of cover should the car be broken into whilst parked at home.
Change of circumstance: driving convictions and penalties, changes in the motorist’s health or occupation are all examples of changes that can affect a driver’s premium. For example, if the driver has retired, and won’t be making a 100 mile round-trip commute each day during rush hour, there is a good chance he/she could see a reduction in their premium. Failure to notify the insurer/broker of these changes, especially driving convictions (including pending prosecutions) can result in loss of cover.
Sale/purchase of car: motorists need to make sure to cancel insurance on any vehicle they sell – this does not happen ‘automatically’. Likewise, it is important for motorists purchasing a new car to arrange for cover beginning the day they drive the vehicle off the forecourt. "Driving other cars" cover, where available, does not cover any vehicle the motorist actually buys or is buying under a hire purchase agreement. This is particularly an issue when buying a previously taxed vehicle privately or at auctions, when it is tempting to drive the vehicle home without making insurance arrangements.
Registration number: make certain the registration number of the vehicle you are insuring is correct – this is a critical link to all of the car’s details and will serve to identify your car as insured by police.
Insurers provide vehicle information of the insured to the Motor Insurers Database (MID). By keeping this database up to date, insurers are able to work with the police in helping to identify those motorists driving without insurance. There are more than one million uninsured drivers in the UK - about 1 in 20 UK drivers. Accidents involving them cost responsible insured motorists an estimated additional £30 each year on their insurance premiums – a burden to the industry worth around £550 million per year.

Changes to Norwich Union Motor Policy

Norwich Union is alerting its customers through a variety of channels about changes it is making to its insurance policy. It is important that drivers understand what their insurance policy covers them for. Letters and customer booklets have already been distributed to customers, and changes are also highlighted on Norwich Union’s website. Key changes that customers should be aware of include:

Driving Other Cars: Norwich Union has reviewed the cover that it provides to customers driving a vehicle not owned by or hired to the insured. Driving other cars cover (where available) is now only provided for policyholders with Comprehensive cover and who are aged 25 or over. In the future this cover may be removed entirely from policies as the insurance industry continues to work with the government to reduce the problem of uninsured motorists. Many policyholders believe the Driving other Cars cover is wider than it actually is, leading to them unintentionally driving without insurance and of course in some cases be prosecuted for doing so. It is widely believed that removal of this cover will remove the confusion that surrounds this cover.

Courtesy Car: customers should double-check their policy to check the level of cover requested – some are assuming they have a courtesy car, when they haven’t requested one on their policy.

Jim Noakes, Director of Distribution and Service Development at Norwich Union, says: "It is tremendously important for motorists, police and insurers that the Motor Insurers Database is kept up to date. Motorists can play an important role in reducing the cost of uninsured drivers by making sure their details are fully up to date with their insurer or broker – thereby helping them reduce the burden that uninsured motorists place on their own premium every year.

"Additionally, motorists need to make certain that their insurance cover is the right level for them. By better understanding their policy, they will be able to make sure they won’t get caught without adequate cover."