Alyssa Lane
The impact of a conviction on insurance depends on whether the conviction is spent or unspent. A conviction is considered spent under the Rehabilitation of Offenders Act 1974 after a certain period, and insurers cannot take spent convictions into account when determining coverage and premiums. Unspent convictions, on the other hand, must be disclosed to insurers when asked, and they can result in higher premiums, reduced insurer options, or even policy invalidation. The length of time a conviction remains unspent varies based on the type of conviction and its seriousness. For example, penalty points for driving convictions typically remain on a licence for four years but can stay on a record for up to eleven years for more severe offences.
| Characteristics | Values |
|---|---|
| When to disclose a conviction | You must disclose unspent convictions at renewal or when buying a new policy. |
| Not disclosing a conviction | If you don't disclose unspent convictions, your insurance is invalid. |
| Conviction becoming spent | After a certain amount of time, a conviction becomes spent and doesn't count against you. |
| Declaring spent convictions | You don't have to declare spent convictions, even if you're asked. |
| Penalty points | Penalty points stay on your license for four years but can remain on your record for up to 11 years for serious offenses. |
| Insuring a car without a valid license | You can insure your car if you don't have a valid license, but you can't drive it. |
| Car insurance after a ban | You can apply for car insurance after a ban, but you must disclose driving convictions and points on your license, which may increase costs. |
| Renewal without MVR | Insurance companies sometimes renew policies without an MVR, leading to a significant price increase at the next renewal when an MVR is ordered. |
| Time lag | There can be a time lag between a conviction officially being on your record and when your insurance processes the renewal. |
| Broker assistance | Insurance brokers can help find the right insurance for your circumstances and know which providers are likely to offer cover. |
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What You'll Learn
'Spent' convictions and the Rehabilitation of Offenders Act 1974
The Rehabilitation of Offenders Act 1974 (ROA) allows eligible convictions or cautions to become 'spent' after a specified period of time, known as the 'rehabilitation period'. The length of the rehabilitation period depends on the type of offence and the sentence imposed by the court. For example, a prison sentence of over 4 years can be spent after 7 years, provided the offence is not listed in Schedule 18 of the Sentencing Act 2000 or 2020. Offences that are excluded from rehabilitation include those resulting in a prison sentence of more than 4 years and certain types of convictions, such as manslaughter.
Once a conviction is spent, it is no longer required to be disclosed to insurers or potential employers who are requesting a basic Disclosure and Barring Service (DBS) check. This means that individuals can generally answer "no" to questions about convictions, even if they have previously been convicted of a crime. However, there are certain jobs that are exempt from the ROA, such as those working with children or in the justice system, which may still require disclosure of spent convictions. These jobs typically involve a standard or enhanced DBS criminal record check.
It is important to note that the ROA does not delete convictions from an individual's record; they will remain there for life. Additionally, the ROA may not apply when travelling or working outside of England and Wales. The Act also does not prevent discrimination against ex-offenders in terms of employment and reintegration into society.
In terms of insurance, penalty points usually stay on a driving licence for 4 years but can remain on a record for up to 11 years for more serious offences. This can impact the cost of insurance, as there may be fewer insurers willing to provide cover and the rates may be higher. However, after the rehabilitation period, the conviction is spent and will not count against the individual anymore. It is important to disclose unspent convictions to insurers, as failure to do so can result in the insurance policy being invalid.
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Insurers' attitudes towards convictions
The Rehabilitation of Offenders Act 1974 states that once a conviction is "spent", it does not need to be disclosed to insurers, no matter what question is asked. A conviction is considered spent once the rehabilitation period is over. The length of this period depends on the sentence or disposal an individual is given in court. Offence codes AC10 to AC30, CD10 to CD30, and CU10 to CU80 must stay on a driving licence for four years from the date of the offence. Penalty points usually stay on a licence for four years but can remain for up to eleven years for more serious offences.
Insurers are advised to ask clear and concise questions during the application process and not to ask questions that misrepresent or imply an obligation to disclose convictions that should not be disclosed. However, research by the charity Unlock found that two-thirds of 42 high-street insurance companies failed to make it clear to people that they didn't need to disclose convictions that were "spent". Nearly one-fifth of the companies also took into account spent convictions when considering an application, despite being legally obligated to disregard them.
Individuals with criminal records often face challenges in obtaining quotes from mainstream insurance providers, and some with spent convictions may be confused by the questions asked by insurers, mistakenly believing that spent convictions need to be disclosed. In some cases, insurers may withdraw policies if individuals disclose convictions after initially providing a quote that included a "no convictions" statement in the assumptions.
It is important to note that individuals are only required to disclose the details of unspent convictions if specifically asked by an insurer. While most insurers will ask about unspent convictions when providing a quote, individuals should not volunteer this information unless prompted. Failure to answer questions accurately and completely could result in the invalidation of the policy and the non-payment of future claims.
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When to disclose convictions
The Rehabilitation of Offenders Act 1974 ROA states that once a conviction is "spent", it never has to be disclosed to insurers. This is the case no matter what question an insurer asks. A conviction is considered "spent" after a certain period, known as the "rehabilitation period". The rehabilitation period is based on the sentence or disposal an individual is given in court. Once this period ends, the conviction is usually removed from the person's criminal record and insurers are no longer allowed to take it into account.
If you receive a conviction during your policy term, you should disclose this information when you renew your insurance. Some insurers' terms and conditions may require you to disclose new convictions as soon as they happen, so it is important to review your policy wording. You must also truthfully and accurately report convictions for any other individuals covered by the insurance policy.
If you are taking out a new insurance policy, you must disclose any unspent convictions if asked. If you are not directly asked, it is important to check the terms and conditions of the cover. If you do not disclose unspent convictions, your insurer could cancel or void your policy and refuse to pay out for any claims.
If your insurer does not ask about your criminal convictions during the application process, you do not have to tell them about any spent convictions. However, you must disclose any unspent convictions.
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How convictions impact insurance costs
The impact of convictions on insurance costs depends on several factors, including the type of conviction, its severity, and the laws in your jurisdiction. Here is a detailed overview of how convictions can influence insurance costs:
Spent vs. Unspent Convictions
The biggest factor influencing insurance costs is whether a conviction is spent or unspent. Under the Rehabilitation of Offenders Act 1974, a conviction becomes spent after a certain period, which varies depending on the sentence. For example, if sentenced to less than six months in prison, the conviction becomes spent two years after the end of the sentence. Once a conviction is spent, it no longer needs to be disclosed to insurers, even if specifically asked.
Increased Insurance Costs
Unspent convictions will almost certainly impact insurance costs. Most insurers will inquire about any unspent criminal convictions from the last five years, and these will likely result in higher insurance premiums. The increase in costs is reflected in the policy renewal, typically for three years from the conviction date. However, some companies may not insure individuals with severe or numerous convictions.
Difficulty in Obtaining Insurance
In addition to higher costs, individuals with unspent convictions may face challenges in obtaining insurance. Mainstream insurers often refuse to cover those with unspent convictions, and specialist or non-standard policies may be required. These policies are not offered by mainstream insurers and can be more challenging to find. However, some specialist providers offer more affordable insurance for drivers with convictions.
Driving Convictions
For driving convictions, penalty points usually remain on a licence for four years but can stay on a record for up to eleven years for more serious offences. During this period, insurance costs will likely be higher, and the number of willing insurers may decrease. After the conviction period ends, insurance costs should decrease, and a clean licence can be regained.
Disclosure Requirements
It is crucial to disclose unspent convictions when renewing or purchasing a new policy. Failure to do so may result in the insurance being deemed invalid, leading to potential claim issues and further difficulties in obtaining insurance in the future. However, if not specifically asked about convictions, it is not necessary to disclose them unless stated in the policy's terms and conditions.
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Where to find specialist insurance brokers
When it comes to insurance, convictions can impact your ability to get covered and the cost of your premiums. It's important to be honest about any unspent convictions, as failing to disclose them can invalidate your insurance. While spent convictions under the Rehabilitation of Offenders Act 1974 (ROA) do not need to be disclosed, unspent ones must be declared when asked. These can lead to higher insurance costs and fewer insurers willing to cover you.
To find specialist insurance brokers, there are several options available:
- Online Platforms: Websites like BIBA (British Insurance Brokers' Association) offer a dedicated team of experts to help you find a suitable insurance broker. They can connect you with specialist brokers who have gone through an approval process, ensuring they are qualified to handle your specific needs.
- Agent Associations: Contacting agent associations can assist in finding local agents or brokers. Examples include the National Association of Insurance and Financial Advisors-California (NAIFA-California) and the Western Insurance Agents Association. These associations can provide information and support in locating professionals in your area.
- Company Websites: Many insurance companies provide interactive agent locators on their websites. These tools allow you to find the contact information, including addresses and phone numbers, of local agents or brokers associated with that company. This can be a convenient way to find representatives of specific insurance companies.
- Unlock's Resources: Unlock, an organisation mentioned in one of the sources, provides valuable resources for individuals with convictions. They publish a list of brokers who specialise in insurance for people with unspent convictions, as well as a list of motor insurers who do not inquire about non-motoring convictions. This can be a helpful starting point for those facing challenges due to their conviction status.
- Independent Agents and Brokers: Independent agents and brokers are not tied to specific insurance companies. They can act as insurance brokers, searching the marketplace for the best coverage based on their clients' needs. They have more flexibility in exploring different insurance companies and finding the most suitable options.
Remember to conduct thorough research when choosing an insurance broker. Compare prices, service quality, and the financial strength of different companies. Additionally, it is important to verify the license status of agents and brokers to ensure they are authorised to provide insurance services in your area.
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Frequently asked questions
A spent conviction is one that has been removed from your criminal record under the Rehabilitation of Offenders Act 1974. After a conviction becomes spent, it no longer needs to be disclosed to insurers or considered when applying for insurance.
An unspent conviction is one that hasn't reached its defined time limit and will appear on a basic criminal record check. Unspent convictions must be disclosed when applying for insurance, and they may result in higher premiums or difficulty obtaining coverage.
You must disclose your unspent conviction when asked by your insurer, typically at the time of renewal or when purchasing a new policy. If you deliberately fail to disclose an unspent conviction, your insurance may become invalid, and they can request a refund for any claims made.
The duration of an unspent conviction varies depending on the type of conviction and its seriousness. Penalty points on a driving licence, for example, typically remain for four years but can stay for up to eleven years for more severe offences.
