Does suspending car insurance affect NCD?

johndhuk

Hi,

On 22nd November 2007 I took out car insurance with Prudential (unbelievably cheap and recommended!).

I will very shortly be leaving the country for over a year. I put my car for sale on eBay and on 21st June called to suspend my car insurance (So 5 months remaining, 1 month of fees, 4 months refunded!).

I chose not to cancel in case I don't get my visa and want to resume the policy (with my current vehicle, or a new one!). As you still get the same refund if you suspend, but you always have the option of going back.

I am a safe driver, however early 20's and male means car insurance is a costly business. Before I got this car I had 1 year no-claims bonus, if I cancelled the policy I would expect to lose a second year f no claims I was accruing - however I am wondering what is the case if you suspend?

Is there a cut off... it seems incredibly unrealistic that someone could suspend cover for a month and lose a year of no-claims, yet if this is a loophole, what is to stop a young driver getting car insurance and shortly afterwards suspending until the end of the policy, where they get 1 year no-claims and most of their policy refunded!?

I am wondering whether I stand to gain an additional 1 year no-claims by suspending, or whether it will be gone?

Thanks for any advice!

Quentin

Suspension for a period during the year doesn't affect the ncb earned as long as the policy is held to renewal.

But once you sell your car, then you cannot keep it insured!

derrick

johndhuk wrote: »

Hi,

On 22nd November 2008 I took out car insurance with Prudential (unbelievably cheap and recommended!).!

I didn,t know they started insurance policies that far in advance

johndhuk

Quentin wrote: »

Suspension for a period during the year doesn't affect the ncb earned as long as the policy is held to renewal.

But once you sell your car, then you cannot keep it insured!

What do mean by held to renewal?

Do you mean I have to take a renewal with Prudential for the NCD to stand, or would it be transferable to a new company? Does it have to be used immediately or can there be a break?

Also, you say once you sell the car you cannot keep it insured... it was my understanding that by suspending the policy it is not insured. What if someone sold their car and there were a few days until they bought a new one, would they really have to cancel and then take out a whole new policy? I thought suspending was intended to prevent that from happening!?

Basically, once the car is sold, as I see it, I can keep the insurance suspended until November when I will get a 4 month refund and keep NCD, or I can cancel now, receive the same refund but not get a year NC. Am I wrong in this assumption?

Thanks for your help!

Quentin

If you cancel (rather than suspend) the policy before it is due to be renewed, then you don't get ncb for the part year the policy has run.

You don't need to renew - if the suspension remains in place until renewal is due, then you will get a renewal notice showing an extra year of NCB, and you can cancel at the end of the policy year. You will be able to use this with a new company. Most companies accept NCB up to 2 years old.