Car (No claims discount), insurance company con trick

sanfly

Every year i shop round for car insurance and it seems every year i loose some NCD, my current insurer co-op says i have 6 years NCD, yet when i joined them i had to prove 10 years, which i did. Just got off the phone to them, got the run around that my 10 years started me at 5 years with them + 1 year at renewal = 6 years. They are going to get somebody to write to me about it to try and sort it. This seems a con, as over the years i have about 15 years NCD but have lost some like this before. The companies should be made to stick with one system as far as NCD is concerened then we would all know where we are. Is there an insurance body you can write to, that will give you a true NCD period if you frequently change car insurer...........

dunstonh

Every year i shop round for car insurance and it seems every year i loose some NCD, my current insurer co-op says i have 6 years NCD, yet when i joined them i had to prove 10 years, which i did.

Correct.

6 years is the typical minimum that providers will recognise. However, some include more for marketing and internal purposes. This should be forming part of your research before you decide which provider you choose to go with.

This seems a con, as over the years i have about 15 years NCD but have lost some like this before.

Its not a con. Its just a failure of the person buying in not understanding the product they are buying.

When you buy a TV, you go into a shop and you see all these different features and options. Price is not the only option. Insurance is the same. Some providers will accept more years of no claims than others.

The companies should be made to stick with one system as far as NCD is concerened then we would all know where we are.

That removes choice. Not a good thing. If a limit was set then it would not be the 12 years that some offer. it would probably be 6 years. So, all those with more would lose out.

Forced limits will compromise, not improve.

SandC

Doesn't really make any difference. Each company is still going to have their own 'max' no claims bonus anyway when it comes to giving you a reduction off the starting premium. So if you've gone 15 years without an accident you'll only get the same reduction for that as someone who has gone for 10 years without an accident.

If you do have an accident and you have protected no claims, your next premium will still go up as your risk has changed. You've still got your discount cos you paid to protect that particular discount but you've still changed your profile by virtue of having a claim.

It's a very small component of what makes up your premium once you've got past 5 years.

lisyloo

6 years is the typical minimum that providers will recognise.

I think that's meant to be maximum.

When your NCD was dropped from 10-5 you should have noticed on the documents you were sent.
If you didn't like their maximum then you shouldn't have gone with a company that only allowed you to carry forward 5.
Learn a lesson and read your documents next time.
If there is a mistake e.g. in class of us, you might even drive uninsured if you don't check it properly.

Quentin

sanfly wrote: »

This seems a con, as over the years i have about 15 years NCD but have lost some like this before.....

If you already "lost" some proof previously, you should know you need to keep copies of each of your renewal notices so that in future should you want to take out insurance with a company that allows extra years NCD over the normal 5 you can prove it.

vusys1

i would get the correct NCD that you are owed as not all insurers charge the same.

i.e DL/CIC, if you say you had 10 years and then sent in that proof of 6 years, your ncd would be amended & you would have been charged extra.

It happended to me,I supplied ncd stating 5 years or more but as I declared 9 years they were going to amended the ncd to 5 as per letter and charge extra. Had to request my ncd stating my 9 years.

sanfly

lisyloo wrote: »

When your NCD was dropped from 10-5 you should have noticed on the documents you were sent.

Could not tell from the original documents as they said 70% discount with no mention of (x) years, the renewal doucument says 6 years NCD.

sanfly

Quentin wrote: »

If you already "lost" some proof previously, you should know you need to keep copies of each of your renewal notices so that in future should you want to take out insurance with a company that allows extra years NCD over the normal 5 you can prove it.

The co-op insurance states they will only accept the original as proof,and i suspect others are the same. For ref i kept a copy but is probably not useable.

Quentin

The co-op should be well aware of this issue, and accept your paper trail (which will include the latest proof which will be an "original")

sanfly

dunstonh wrote: »

Correct.

6 years is the typical minimum that providers will recognise. However, some include more for marketing and internal purposes. This should be forming part of your research before you decide which provider you choose to go with.

As a financial advisor you probably have knowledge / access to this info, but i doubt that the normal layman would investigate the marketing / internal ploys of any insurance company they go to, especially for car insurance.

dunstonh wrote: »

Its not a con. Its just a failure of the person buying in not understanding the product they are buying.

When you buy a TV, you go into a shop and you see all these different features and options. Price is not the only option. Insurance is the same. Some providers will accept more years of no claims than others.

Yes i understand that and do not have a problem with some accepting more or less years, the problem is in maintaining an accurate NCD record that you can take to your next insurer, which is not happening currently

dunstonh wrote: »

That removes choice. Not a good thing. If a limit was set then it would not be the 12 years that some offer. it would probably be 6 years. So, all those with more would lose out.

Forced limits will compromise, not improve.

I did not mean that a limit should be set as you suggest above, purely that if you go to an insurer with 10 years and you stay for a year with no claims you should come away with 11 years NCD.

Quentin

sanfly wrote: »

......if you go to an insurer with 10 years and you stay for a year with no claims you should come away with 11 years NCD.

Not necessarily.

All you have is a history of 11 years without claiming, which is different to having "11 years no claims discount".