Insurance matters 2

Sir,

I write with respect to Mr. Paul Ward’s letter, “Insurance Tips”, in the January issue.

As a broker who advertises in Motor Sport, I am naturally pleased at Mr. Ward’s recommendation to use a reputable broker, but I am afraid that most of his statements will be extremely misleading to your readers in one case, dangerously so.

Most importantly, he suggests that a young driver include himself on his parent’s policy to achieve a premium reduction for his car. If the young driver is the main user of the car, then the premium will be calculated on him anyway so there will be no difference in cost, and the young driver will lose the chance of building up his No Claim Bonus. If, on the other hand, he does not make it clear that he is the main driver, this withholding of material information could void the policy in the event of a claim.

As to the father obtaining a 10% discount for two cars insured, this is certainly not general and varies from nil to 25% from company to company, and as to using the father’s No Claims Bonus, each Bonus is only available for one car.

While General Accident’s policy is certainly one of the best, it is also usually one of the most expensive, and to receive a ,c19 refund after trading down from a new Alfa 2000 to an elderly Sovereign is nothing to crow about: Of course you get a refund if you change to a lower-rated car.

Finally, the suggestion that a Student describe himself as “of independent means”, while it may not be a lie, is also not the whole truth and could also void the policy. Anyone following Mr. Ward’s various advices could easily find himself in extremely serious trouble, and I am rather surprised that you should print such a letter.

I suggest that your readers follow Mr. Ward’s advice to use a reputable broker, and not the dangerous ideas of a layman.

London WC1 G. FOSTER TAYLOR