From 2 cars to 1

Bloke_in_the_cool_shirt

Hi,

Wonder if anyone can help with a question about No Claims Discount.

The wife and I have migrated from 2 cars down to 1 a situation which I imagine will last for a couple of years but probably not beyond. I'll be the main driver and have 5+ years NSD. The wife will be a named driver. She has also built up 4 years NSD and we'd prefer not to lose them.

I believe that NSD decrease or vanish if you aren't insured personally for x amount of time, is that right? Is there any way to preserve hers?

I know some companies do NSD for named drivers but the few i've looked at seem to be granting x% discount when the named driver goes on to take out their own insurance later.

I'm sure i'm not the first person to look at this sort of stuff so any pointers greatfully received.

Cheers

Shimrod

The length of time your no claims discount 'lives' for depends on which insurance company you choose to re-insure with. Some will not consider any gap of more than 6 months but many will allow up to 2 years.
You have a few options:
1) Go with one of the companies (e.g. co-op, direct line) that let's both drivers earn a no-claims discount - the caveat on this is that when you insure two cars again, for the first year at least you will have to insure with the same company
2) Insure the car in alternate names each year with the other as the named driver which will keep both no claims discount active. Only really works if you drive the car more or less equally otherwise it could be considered 'fronting'
3) Get some insurance quotes now for your wife using the assumption that she has no NCD. You might be surprised (depending on car) on how cheap you can get the insurance with the introductory discounts.
We changed to 1 car about 5 years ago, and we found option 3 worked out best for us - less hassle and the difference in car insurance prices was only around 10%

Bloke_in_the_cool_shirt

Thanks for the tips Shimrod, i'll take a look and see how we go. :beer:

chigley

When we went from 1 to 2 cars (currently got 4 - don't ask!) I asked the Insurance company if they would treat the fact that the missus has never made a claim on my insurance and would they consider my no claims as the basis for hers, to which they agreed. I think you just need to negotiate a bit when the time comes, although it may be useful to get proof from her old insurance co before you close the policy.