Bonus Accelerators!

JonBoy_SCFC

dacouch wrote: »

I don't work for an Insurer.

There can be other reasons why a twelve month policy can be more prudent, it would be nearer 30%.

agreed with that - i don't disagree that 12 month can be a better, i disagree with you making it appear a bigger issue than it is.

Do you honestly believe the companies you listed make up 30% of the new sales for car insurance?!?:rotfl::rotfl::rotfl:those companies are the cheapest 30% of the time ????:rotfl::rotfl:

i just been to AXA's site http://www.axa.co.uk/ and there's no link to AXA motor insurance - it's a link to Swiftcover, who do accept bonus accelerator. So in a way, AXA who you listed actually do accept bonus accelerator;)

dacouch

I'm not talking about the percentage of companies that accept bonus accelorator ncd.

If your the expert on Insurance, see if you can work out the situations when a 10 month policy will not work out cheaper. (There are more than one).

JonBoy_SCFC

obviosuly if you make a claim it doesn't work out cheaper because the increased premium you pay in the "next policy" after the claim - this happens 2 months earlier, so you're being charged for 2 months at a higher rate than you would be on the 12 month

i was not claiming to be an expert, i'm not. but i'm entitled to ask the question when i suspect someone is exaggerating the issue

dacouch

That is one of the chances and bearing in mind around 30% of young drivers have an accident in their first year it will affect quite a few of them.

There is another one that will affect just under 1/6th of them and it makes quite a difference to their premiums

JonBoy_SCFC

if you cancel then you've paid a higher amount pro-rata. do i get a prize for this little quiz of yours?

Like i was saying earlier, i don't disagree that 12 month is often a better option than the bonus accelerator, but i think the concern of the NCB not being accepted is nowhere near the concern you make it out to be:money::money::money:

dacouch

The people who often do not benefit are the people who take out a ten month policy within the 8 weeks or so after their birthday. When the policy is due for renewal ten months later they do not benefit from their renewal date being just after their birthday and the resultant lower premium. This also affects their future renewals as each renewal will not tie in with their birthday (Unless they have a major change in their insurance). This can affect them by hundreds of pounds at their renewal and have a fairly big impact on their future renewals.

If you a percentage of the above to a percentage of the others you guessed correctly who had claims it will come to roughly a third (Give or take). So thats a fairly significant percentage of young drivers who would not neccessarily benefit from having a ten month policy.

The bonus accelorator policies can be a good thing for the right customer, however it never ceases to amaze me how I see customers who are quoted these over a twelve month policy when its not the best thing for them.

A lot of the Insurers push these as it increases renewal retention and their staff either do not understand which customers they are best for or chose to ignore it so they can achieve their targets.

JonBoy_SCFC

fair point, although people who have their birthday after the 8 week (approx 80% of them) benefit sooner from a new rate for their age as well as their NCB don't they?

i'll say it again, i have no objection to your recommendation of 12 month over bonus accelerator. i do object though to the way you exaggerate the issue of the NCB not being accepted by potential new insurer - this issue is very very small:money::money:

dacouch

Like I said their are a lot of people who benefit from accelorator policies but a significant amount who don't.

I use the ncd as a simple way of recommending people get a quote for a twelve month policy and compare it with ten months rather than have to explain the other possible pit falls. Its a much easier way of putting it over that they will understand and think about

There are a lot of people like you, who do not understand the people the accelarator policies are not suitable for and just sell them to everyone.

The accelorator policy was brought in originally (by Admiral if my memory servces me right) as a way of locking customers in / increasing renewal retention. Its the benefits to the Insurers why a lot of companies get their staff to quote these plus the fact when you quote someone £1000 for ten months against another insurers quote of £1200 for twelve months a large percentage of customer will go for it as its "Cheaper"

JonBoy_SCFC

i understand all of that thanks, it's not difficult

i was just pointing out that the vast majority of companies will accept the bonus accelerator ncb. it appears you are accepting that now, and just trying to make out that i'm disagreeing with you on other things (which i haven't done anywhere in this thread)

mike81

Thanks for your thoughts - I Googled 'Bonus Accelerator' and Endsleigh are doing a 6 month one for students. They do say it is only valid with them, but getting 2 years no claims bonus after 18 months is real tempting. If it's a 6 month cover, I guess i wouldn't see it on the price compare sites?