it could also be a relevant marketing tool ..basically don't tell your insurance company diddly squat 
summarised version
"Deciding whether to make a claim on your insurance can be a bit of a mind field - What's covered? What's the excess? How will it affect No Claims Discounts? A quick call to your insurer should help - but beware. Even if you decide NOT to make a claim, your call could still be logged on your history, and count against you in the future.
As Simon Clayton discovered. He took out car insurance with Budget Insurance in June, but just weeks into his cover they cancelled his policy saying it was because he had failed to disclose two previous claims. The problem was he hadn't made any.
"I phoned up my previous insurer, Swift, and they told me one was for a windscreen repair and one was a notification from where I'd driven into a pothole," explains Simon.
The windscreen repair was provided free as part of his cover and didn't affect his No Claims. And the pothole had caused no damage and was just to get a reference number for his local council. But Swiftcover had logged the incidents on Simon's history AND told Budget all about them. Why?
David Hertzell from the Law Commission explains: "Insurer's are in the risk business, they are looking at you as a policy holder as a risk to them. So they want to know about claims that you've made, but they also want to know about other thing as well, including circumstances that may have happened but didn't result in a claim. And this is your record this will travel with you whichever insurance company you're with"
Budget did offer to reinstate Simons' policy - but they demanded £500 more, double their original quote, which Simon cannot afford. And what's more having a cancelled policy on his record meant he was unable to get affordable car insurance from anyone - leaving him without transport and his car parked constantly on his mum's drive.
And Simon's case isn't a one off. Insurers share this kind of information about us all the time."
here's the link for the full expose ..http://www.bbc.co.uk/blogs/watchdog/201 ... sions.html
