Motor

Q. I was completely innocent in the road accident which smashed up my car. How come I now have to lose my no claim discount?

A. Sorry if it's stating the obvious but you've got a no CLAIM bonus. It is not a no-blame bonus. If you make a claim of any kind on your policy your insurers are entitled to reduce the amount of discount you get. If you can get the guilty party (or their insurers) to reimburse your insurance company for all they have paid you, you may be able to get your bonus reinstated. The important thing to remember is, if you claim on your policy your bonus could be reduced. Blame is not taken into account.

· Some tiles have blown off my neighbour's house and smashed up my car. Surely it must be the neighbour's responsibility to pay up for the damage?

This is more a legal question than an insurance one!
If you want to get your neighbour to pay for the damage you will have to prove that he/she was actually responsible for what happened. It is not enough that they owned the tile. As this is a legal question you should consult a legal adviser to see how successful you are likely to be if you sue them. Readers outside the UK may find their legal situation is different, but the advice stays the same - talk to your legal adviser. If you don't want the hassle of trying to get the money off your neighbour and you have comprehensive motor insurance you might like to claim on your own policy - but read the answer to the question about no claim bonuses before you do!!

· Why should I pay exorbitant rates, just because I cancelled my motor policy after a couple of months?

Most insurance policies are designed to run for 12 months. The premium you pay is for the full year. If you cancel in the middle, strictly speaking you are breaking your agreement to insure. If you do cancel, there are still a lot of costs that have to be paid for (like policy documents, administration, commission for the person who sold it etc etc). These costs have to be paid no matter how long the policy runs so often the amount of any refund is quite small. The best advice is shop around carefully before you buy - then stick with it for the full 12 months.

· I paid hundreds of pounds more for my car than the insurance company is offering now it has been written off. Why is this?

The insurance company will pay you the value of your car at the time of the accident. All cars deteriorate from the moment they leave the showroom. If you are unhappy with the value being offered for your car, after it has been written off, send the insurers any proof you have - like adverts for similar vehicles or the appropriate pages of price guides. If you think it's worth it, you could get an independent engineer to look at the wreckage and give you an estimate of its pre-accident value. You will have to pay the engineer's fees but if this means you get a bigger insurance payout it might be worth it.



Household

· Why should I bother insuring my house for the rebuilding cost? It's higher, so if I had a fire I'd just move to another house.

That's easy to say but not always as easy to do. It is extremely rare to find a house is burned to the ground. Normally it is damaged and there is, at least part of the structure still standing. If this happens to you, the local authority could step in and force you to spend money on keeping the structure standing or having it demolished. Either way it will cost your money and if you don't have enough insurance it will mean you could end up paying these bills yourself, just at a time when you need all the money you can get to rebuild your home.

· I have a friend living a few miles away whose house is practically identical to mine. How come that my rebuilding costs are so much higher than hers?

People often get confused by this. The rebuilding cost of your home reflects all sorts of factors, including how it's built, the cost of labour in your area, the materials that would be needed to re-instate the building. There is no point in comparing one building with another because not all the factors will be the same - even if the hoses are similar - just make sure that your sum insured accurately represents the cost of rebuilding your home and you'll be ok.

· Heavy rain has crept through my flat roof. Why won't the company pay to repair the roof? - They keep saying its wear and tear.

A. Your insurance covers you against a long list of disasters listed in your policy, like fires, floods, burst pipes and so on. If the rain came through your roof because of a storm you should be able to claim. But if it leaked because the roof was wearing out (which your insurers seem to be suggesting) that's not what your insurance is for.

· I told the insurance company I would rather have cash than replacement furniture after my fire. Why is the cash they have offered a lower amount than the replacement cost?

Your policy will contain a clause saying that, when they deal with your claim, they can repair, replace or pay for any item. When they replace an item they negotiate a special discount with the supplier. If you turn down their offer to replace an item and ask for cash instead, they will usually agree to this, but they will then pay you the price they would have paid for the replacement (ie including any discount).

· My three piece suite will never look the same with just one chair replaced. Why won't they replace the whole suite?

The simple answer is because the whole suite hasn't been damaged - just one chair and your insurance is not designed to pay for undamaged items! This question arises quite often and most insurers have clarified the position by putting an explanation in their policies. If you can't see anything in your policy, give your insurers a ring and ask them whether they have clarified their position on 'pairs and sets'.



Holiday

· Why have we had to pay several "excesses" when the claim concerned only one incident?

Many holiday policies have excesses that only apply to certain sections of the policy - like baggage claims or medical fees. With these claims, the excess applies to each person individually and if there are three people claiming I'm afraid three excesses apply. The only way to avoid getting caught by a condition like this is to check the wording of the holiday policy before you buy it.

· It wasn't my fault that my angina flared up again during our holiday. Why won't the insurance company pay for my hospital visit?

Firstly, ask them. All insurers will give a reason if they won't pay a claim. It's interesting you refer to your angina flaring up 'again'. If you've suffered from something like this in the past the insurance application form you completed when you took out the insurance will have asked you give details of any illnesses you were already suffering from. If you didn't tell them about your pre-existing condition they have every right to refuse to pay for any further treatment

· At the last minute, my wife felt she could not face the flight to Spain. Now the insurance company won't pay out for cancellation charges. Why is this?

You can't insure against your wife deciding not to go on holiday. If she can't travel because she is ill has to look after a sick close relative or has been called for Jury Service they will refund your cancellation fees but a simple change of mind is not insurable.



Life

· After a couple of years, I felt I could no longer afford my life insurance premiums. Why won't the insurance company give me my money back - after all I have not made any claims on the policy?

Life policies are long term contracts and are intended to run the full term. If you cancel before it reaches the full term the insurers may not refund all you paid in. There are alternatives open to you. Check out Life insurance - Surrender Values

General

· It's easy enough to insure your car or house. What about the more unlikely things in life like unusual pets, musician's fingers etc etc. Where do you go for those kinds of cover?

Most of these policies are sold by specialist insurance brokers. Often a broker can either arrange the cover you need or put you in touch with someone who can. Often it's simply a question of asking! But remember, if the policy you want is very unusual and needs individual underwriting or special policy wordings they may prove expensive. But it's worth it if it's your Show Champion Dog needs cover or you're Elton John and want to insure your piano playing hands.


· Every time you buy a new refrigerator or car these days, the sales person tries to sell you an 'extended warranty'. What do these things do? Are they just another form of insurance?

They are insurance contracts but the best way to look at them is as an extension to the manufacturers guarantee. Often there is a period when the manufacturer gives you a guarantee. They promise that if anything goes wrong they will repair or replace the item. After that period expires these insurances 'cut-in' and promise that if your fridge (or whatever) breaks down they will either pay for it to be repaired or send someone to do the work for you. If you are offered one of these extended warranties make sure you know what you're buying.


· My husband and I are splitting up. What should we do about our joint life policies?

Sort it out now!! A joint policy usually means you must get both parties to sign consent forms before any changes are made or the policy proceeds are paid out. Often in situations like this the couples lose touch with each other and then find it almost impossible to sort out who is entitled to the policy proceeds. Presumably if you are going through a divorce you have a solicitor involved. If you do, you should both take their advice on the best way of sorting out this problem.


· I have seen several advertisements offering a " free legal advice helpline" What exactly does this mean?

It is possible to buy a policy which pays the cost of legal expenses if you need to take legal action or defend yourself against someone else suing you. In some cases the policy includes a dedicated help line where a legal expert can give you instant advice. There are also some motor insurance policies that offer a similar service either as a free, extra service or as an option you can buy if you wish. For more information on legal expenses click on Legal Expenses Insurance.


· Why can't someone set out, in plain English, a list of the people I can complain to about insurance and other finance-related matters?

You will find that your insurance company will have written on your policy document exactly how you can make a complaint, if you need to and who to contact. Before you contact an outside body, why not take the matter higher within the insurance company concerned. Most companies have a Customer Services Section at their Head Office who may be able to help you. If not, try contacting (by letter) the Chief Executive of the company.

· What is meant by an "insurance intermediary". If I have a complaint against an intermediary, who do I go to?

An "insurance intermediary" is anyone who sells insurance. It could be an organisation who are in business just to sell insurance products or they may be selling insurance as a side-line. Insurance can be sold by solicitors, accountants and other professionals as part of their service to their clients. Alternatively it could be people like car sales outlets, high street retailers, banks, building societies or even vets surgeries. The key point is that if an organisation is selling insurance they are bound by ABI's General Insurance Selling Code. If you are unhappy about the way an insurance has been sold to you contact the insurance company who underwrites it to complain.