Recalculation may also occur when using the previous vehicle owner's policy. What should you do in such a situation?
What is third-party liability insurance premium recalculation and what does it involve?
Premium recalculation involves recalculating the value of the insurance premium while taking into account changing parameters that may affect its amount. These include, among others, the driver's age, insurance history and no-claims discounts, as well as their place of residence.
It is therefore worth knowing that the law requires the vehicle owner to report any changes that could affect the amount of the premium for car insurance. However, whether the insurer recalculates the premium depends solely on the insurer.
Third-party liability insurance premium recalculation after buying a car
The first situation in which an insurer may recalculate the premium is when a car is acquired by a new owner. Under the law, when selling a vehicle, the previous owner is required to transfer its third-party liability insurance as well. It does not matter whether the policy provides several more days of cover or even several more months. Along with the four wheels, the new owner also acquires a valid motor insurance policy. In this situation, it is obvious that the parameters relating to the owner, which were previously taken into account when calculating the premium, may change drastically.
For example, a young and inexperienced driver buys a car from an experienced driver with an established insurance history. In reality, if they bought a policy calculated using their own details, they could pay even several hundred zlotys more for third-party liability insurance. This is precisely when the insurer may, but does not have to, recalculate the premium and request payment of the difference.
Premium recalculation when false information is provided
Another situation in which premium recalculation may occur is concealing the truth and providing false information when the premium is calculated. When assessing insurance risk and calculating a third-party liability premium, every insurer asks, among other things, whether other drivers will also use the car. The insurer also asks about the place of residence. All of this affects the final premium amount.
If it is reported that a young driver will also drive the car and will regularly travel on the streets of large cities, the car insurance premium will rise drastically. Then, in an effort to save a few pennies, we slightly distort reality by declaring that we are the vehicle's only drivers and, moreover, live in a small town where the risk of a collision is much lower. If the truth comes to light, the insurer may recalculate the premium and request an additional payment. This may happen, for example, when a young driver who was not declared on the insurance causes a collision.
What to do if your insurance premium is recalculated?
The options available to you after a premium recalculation depend primarily on the circumstances in which it occurred. If the risk assessment and calculation of the new premium were caused by a change of vehicle owner and the new premium is exorbitantly high, you have the right to cancel the insurance contract and find a company that offers you better terms.
For this purpose, you can use, for example, the Beesafe calculator. After entering just two details, you will receive an insurance offer. However, you should know that regardless of cancelling the third-party liability policy, you will have to pay the difference in the premium, but only for the period during which you used the cover—that is, from the moment you acquired the vehicle until you cancelled the contract.
The situation will be slightly different if the recalculation occurred partly through your own fault because you provided false information when buying the insurance. In that case, you will probably have to pay the difference in the premium.