Direct Line NCD question...

Quentin

No, if you drive for 10 years, switching providers each year, your NCD builds up just as if you stayed with the same insurer throughout.

One year for each complete year on the same policy. You said you haven't completed a year on a policy, but always switched mid term, which is why you currently don't have any NCD

lisyloo

Well that's a bit of a ridiculous system

You are entitled to your opinion on the business model.
But you need to dela with it because that's the way it is.

That means I could be driving for 10 years with no claims at all but if I were to switch providers each year because I could get it cheaper elsewhere those 10 years would count for nothing?

No I don't think that's right.
If you change each year at normal renewal time then you carry forward your NCD.
So at end of year 1, you have 1 year NCD that you take to new insurer.
At end of year 2 you have 2 years NCD which you take to new insurer.
But what you did (if I udnerstand correctly) is you switched MID year and never earned any NCD.
If you switch at the end of the year, then it's fine.

Insurance works as a annual contract.
You mgiht consider that ridiculous but it's how the bulk of them work.
There are some more flexible policies but they normally aren't the cheapest and there is a premium to pay for that flexibillity.
It might not have suited your circumstances to deal on an annual basis, but by and large that's how the insurance industry works.

MissDVL

Quentin wrote: »

No, if you drive for 10 years, switching providers each year, your NCD builds up just as if you stayed with the same insurer throughout.

One year for each complete year on the same policy. You said you haven't completed a year on a policy, but always switched mid term, which is why you currently don't have any NCD

I meant if I switched mid term every year for 10 years.

lisyloo

I meant if I switched mid term every year for 10 years.

Yes if you switch mid term

1) you get no NCD
2) Admin fees can be up to £50 for cancelling
3) You will pay short term rates e.g. 50% for 4 months cover

The best way is to find the best price on an annual basis.
Quidco is also good. I got £75 cashback this year and £120 back last year.
No guarantee but it's always worked out well for me.
Follow Martins tips is the best way.

Unfortunately that's the way the industry works and you have to find the best way trhrough it which is generall with annual policies and not changing mid term.

Quentin

MissDVL wrote: »

I meant if I switched mid term every year for 10 years.

In that case you were correct. You wouldn't ever get any NCD.

So if you intend to do this, then ensure the savings you make by switching mid term each year make up for the loss of any NCD!

clear_blu

Quentin wrote: »

If you are the owner of the car, then your father cannot take out the insurance for it. In the event of a claim, they will invalidate the policy, and not pay out to you!

I see that your comment seems to have passed without notice. I agree with you the OP should be carefull that the insurance company are fully aware of the circumstances. This sounds to me like a case of 'fronting', I would be wary that the company may refute a future claim.

Quentin

You're right, the OP needs to address this. But there is no fronting going on. Just as bad, though, the declaration of ownership on the proposal form may be fundamentally innacurate.

jonnyd281

OP do you realise that if you are the main driver you are committing insurance fraud in the form of fronting and will probably not be covered if you have an accident (since you say you are the main driver but your dad has insured the car with you as a named driver). The results of this can be massive (driving without insurance for one), and having great difficult or being unable to get any insurance in the future?

MissDVL

I will have to get my dad to look into this. As far as I was aware and from what I have been told by Direct Line I have no problem being the main driver of the car as he also frequently uses it. The only reason the car is registered in my name is because he wouldn't have gotten credit for the finance.

Quentin

There is no problem regarding fronting - you are declared correctly as the main driver.

The problem you have is that the policy can't be in your Dad's name if the car is registered to you and you own the car.