Elephant.co.uk reports their strangest car insurance claims

NCD News: Elephant Car Insurance - 19.08.08

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Elephant.co.uk reports their strangest car insurance claims: Can a squirrel throwing nuts crack your windshield? These things might sound like something out of a Monty Python scene, but in fact they are real claims submitted to elephant.co.uk. In a press release, the insurer listed other "weird" claims it had received, such as a claim for a parked car that had been kicked by a camel, a windshield melted by a Harrier fighter jet which flew too close overhead, and a motorist who mistakenly filled a petrol tank with shampoo instead of fuel.

Although the stories may seem funny, elephant Managing Director Brian Martin said that they should serve as a caution to drivers to be "aware of their surroundings at all times". Some claims can be avoided simply by being aware both of what you are doing and what is going on around you at all times. He also noted that the company's claims handlers were skilled at handling all sorts of claims, even the most unusual.

The stories, while funny, tie to the very nature and structure of any insurance policy you get. As we've written before, insurance is never designed to cover "everything". Rather, regardless of the particular level of coverage you purchase, it is always designed to essentially cover unavoidable incidents and accidents. Coverage also implies that before any accident occurs, the policyholder's actions were reasonably prudent.

Among the incidents related by elephant, the car kicked by the camel or windshield cracked by a squirrel are examples of incidents that are unavoidable. The petrol tank filled up by shampoo is not (elephant didn't note whether there was a payout on that or not).

One of the less-humorous trends among these weird stories is the slow growth of a "compensation culture" in Britain. In a society where "fun" is often equated with high-risk behaviour, there is an underlying idea that "if something bad happens to me because of my recklessness, either the insurer or the courts will take care of me". This is not true. Most insurance policies have clauses that will invalidate any claim that is obviously caused by personal recklessness ‚Äì alcohol and drugs are often specifically mentioned as deal-breakers. And while the telly is filled with solicitors nowadays who assert they can "force insurers to pay", you should know that fighting in any court is no simple matter. Remember too, that insurers, by the terms of your agreement, have access to all relevant information concerning any claim (both public and private), and the larger and/or more unusual your claim, the more information they will ask for. If the evidence emerges during the claims process that suggests you were reckless in some way, the chances of a payout are reduced.

Payouts go smoothest when a particular claim clearly shows policyholder prudence before the event. For instance: a home that that had contents stolen despite an alarm, or a car that was struck by another despite the driver obeying all road rules and driving within the speed limit. On the other hand the media have run many "darkly humorous" stories of drivers being denied claims because their cars were stolen after they were left running with the keys inside while the driver dashed into a store to buy a pack of cigarettes. That's because many insurers consider such action reckless and will not cover the car for theft in such instances.

While elephant's stories may therefore seem humorous, then, there is again an underlying message to all actual or potential policyholders: stay aware of your own actions and your surroundings, both for your personal safety and if you want to make any claim later.

Editors note: I've sat in the court rooms and been in the negotiations for car insurance claims. Insurers have been doing this for hundreds of years, their small print is finely tuned and their lawyers are highly skilled/paid ‚Äì your solicitor will have been doing personal injury compensation claims for ten years at the most (usually much less). Stay out of trouble. If you got a great discount on your premium by saying you have a garage to keep your car in at night, then you better keep the thing in the garage at night! †