A couple of years ago, my sister—who was a named driver on my policy—accidentally backed into someone’s car while parking. She exchanged contact information with the car owner, who told her it was fine and not to worry about it. She never followed up, and now that car is sold. However, the owner has recently made a claim against us.
We’re now looking to switch insurance companies because our current insurer is raising our premium significantly. My question is about how to handle this when applying for a new policy. Since the claim is against my sister and the car we used is no longer in service, the standard questions don’t quite fit our situation.
How should I answer questions about past claims when applying for a new policy? I’m aware that being honest is crucial since insurance companies can cancel or void policies for dishonesty, but the options provided don’t seem to cover my exact situation.
It’s definitely a tricky situation, but honesty is key when applying for new insurance. When filling out the application, you should disclose the claim, even though it’s technically against your sister as a named driver and not you directly. If there’s a section to provide additional details or explanations, that’s a good place to clarify the circumstances—that the car is no longer in use, and the incident involved a named driver rather than yourself. If the application doesn’t offer a spot for details, it’s a good idea to contact the insurance company directly to explain the situation. This way, you ensure transparency and avoid any future issues with your coverage.
When applying for a new insurance policy, honesty is essential, even if the standard questions don’t perfectly fit your situation. When asked about past claims, describe the incident involving your sister accurately: mention the accident, that the car owner said it was fine, and that the claim has now resurfaced despite the car being sold. Emphasize that the vehicle is no longer in service and that you’re dealing with a claim that has just come to light. Providing a detailed and honest account will help ensure transparency and prevent issues with your new policy. If the application doesn’t offer a suitable option, consider contacting the insurance company directly to explain your situation.
