Really winding me up, car insurance

MORPH3US

Hi folks

Having been driving for the past 3 years but never having my own car insurance because it was too expensive, I finally went for it last year and got my own at the age of 24.

Now a year later and its time to renew and my renewal didn't seem to take the price down too much. Fair enough, renewals are reknowned for being more expensive than new quotes so I get more quotes online and they still aren't too much cheaper!

So now I am really wound up about it. I am now over 25 and have 1 years no claims but its only gone down by about £100!

To make it worse, when I get quotes online, with 1 years no claims usually makes it MORE EXPENSIVE than with zero no claims - whats that all about?!?!?

M

Astaroth

I have never heard of an insurer that gives a larger introductory discount than 1 years NCD but the two are close. Going down £100 isnt that bad (depending on what the basic premium is) given that the average premiums for everyone has gone up due to inflation and above inflation increases in claims.

MORPH3US

Try it Astaroth with your own details.

I think it works on Tesco car insurance and probably most others!

First do it as you but with no NCD and then try it with 1 year NCD!

M

MORPH3US

Just tried with directline, exact same details:

With 1 years NCD = £423

With ZERO no claims = £394

Weird and ANNOYING!!!!

M

Astaroth

OK, you are correct, things have changed since my day

Spoke to one of our underwritters (though just to point out that I dont work for Tesco) and they say that the risk profile of a new customer with no NCD is generally lower than someone with 1 years due to things like wifes getting their first own cars etc where as a greater proportion of people with 1 years NCD have come down to it after claims.

Though I am sure there is some element of trying to give an overly cheap first quote too to secure business with someone and then let it return to natural progression after that.

Needless to say the discount for 0 years NCD (introductory discount) is only available to new customers so if you were on 2 years and had a claim so went back to 0 at renewal you wouldnt get any discount.

The other thing to remember with Direct Line which you mention is that you get the intro discount and if you then remain claim free you jump straight to 2 years NCD (as far as I am aware) so renewal will be cheaper as the 2 years NCD is greater than the intro discount

MORPH3US

So basically, sounds like there is nothing I can do.

I could say I have zero no claims to save up to about £50 this year but then next year I could still only say I have zero again or say I have one whereas if I say I have 1 years NCD this year, i'll lose out this year but next year that will go up to two which would be better than none.

Very confusing!!!

M

Astaroth

If you went with Direct Line, as in your example, got the intro NCD then next year you would have the 2 years no claims discount with them if you stayed.

Who are you with at the moment? Did they not give you an intro discount which converts to 2 years ncd at the end of year 1?

MORPH3US

But would Direct Line's 2 years no claims then be transferrable to other companies or is it like these "accelerated no claims" companies that gives you 1 years after 6 months but no one else recognises it.

I am with Churchill at the moment!

I have never heard of anyone that gives you 2 years NCD after 1 year, it sounds a bit daft to me!!

It also still seems dodgy to me that joe bloggs who has just started getting his own insurance so has zero no claims (therefore is probably inexperienced on the roads) can get a cheaper quote because of some introductory discount than someone who has been a careful driver for a year and has 1 years NCD?!? And all because some housewives who have just started to get their own insurance?!?! Pure craziness!!

M

mrcow

Have you tried Bell Direct?

My brother is the same age as you with small no claims and they saved him lots. Worth giving them a call for a quote.

For some reason, I have it in my head that the first years NCD is only worth about 10%. Is this right?

MORPH3US

From what I know, 1st year NCD = 35%

M

Astaroth

Well given that Direct Line and Churchill are owned by RBS then they may have the same policy... check how many years NCD it says on the renewal or phone them to find out - whilst they have the same parent company they do have their own rules and regulations.

NCD tends not to be as linea as it used to be - traditionally it was:
1 - 30%
2 - 40%
3 - 50%
4 - 60%
5 - 65% (or 70% for the over X year olds)
But these days it is much more flexible and some change the amount of discount given based on age as well as purely the number of years.