Millions facing cover bombshell

By Will McManus

16th October 2009

Up to eight million people could find their car insurance invalid if they fail to declare a previous conviction with their provider.

Insurers said this week that undisclosed convictions – from causing a disturbance to not complying with building regulations – could mean you won’t be covered.

The issue was highlighted by the case of Michelle Barber, who was left with a £241,000 bill after her house in Barnsley, S Yorks, burned down. Provider Aviva voided her policy as she didn’t let it know she had been fined for failing to tell the taxman her benefits had been overpaid.

A spokesman for Aviva told us: “Exactly the same principle applies to motor insurance. We want to know about convictions, but it won’t necessarily preclude your ability to get cover.

“Before you can get a quote, we make a series of assumptions – one is that you have no convictions.” But Chris Stacey, advice manager for offenders’ body Unlock, said it’s not always clear what you have to disclose.

“There are eight million people with convictions in the UK,” he explained. “Motor insurers always ask about driving offences, but don’t make it clear whether they need to know other ones.

“Most people now get their insurance through comparison sites, and think they’re covered if they answer all the questions. But these sites ask very limited questions and churn out dozens of insurers, each of which could require different info.”

A spokesman for the Association of British Insurers said: “The golden rule is to disclose any material facts, particularly convictions. You won’t be penalised unless it’s relevant to the risk they’re taking on.”

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