What to do if there is a break in cover:
If there is a break in cover, you must complete the follow questions with the customer:
Can you confirm that:
- Your car has not been involved in any incidents that have or may result in a loss whilst it’s been uninsured, is that correct?
- You have no pending police prosecutions, is that correct?
- Your car has been kept at the address you declared in this quote whilst it has been uninsured, is that correct?
- Your car has not been involved in any incidents that have or may result in a loss whilst it’s been uninsured, is that correct?
Alt acceptable question:
Can you confirm that while car reg XXX XXXX has not been insured, the car has not been involved in any accidents or incidents that could arise to claim and has not been stopped by police?
Do insurers accept a break in cover?
General information:
- Insurance companies usually accept a break in cover if it is under 30 days with a self-certified declaration (and hasn’t been SORN). However, each insurance company is different so anything over 14 days needs to be referred directly to the insurer. LV have agreed a BIC less than 30 days is fine as long as the customer has confirmed the break in cover details over the phone. BIC over 30 days requires a signed declaration.
- The break in cover letter is the customer confirming the above points (same as the quote journey).
- After 30 days break in cover, it can be difficult to get insurance if the car has not been sorn but refer case by case to the insurer.
LV:
LV have agreed a BIC less than 30 days is fine as long as the customer has confirmed the break in cover details over the phone. BIC over 30 days requires a signed declaration.
AXA:
- AXA will allow 90 days BIC.
- AXA need a letter from policyholder explaining BIC. If BIC is under three months and there are any named drivers under 25 this must be referred to AXA. If BIC is under three months and all drivers are over 25 and explanation is genuine (not just car off the road) this is OK but still need copy licences for all drivers and letter from policyholder.