Free Insurance or 9-11 years of No Claims Discount (NCD)

bauk

Hi,

I am stuck over what to do regarding insurance. I am purchasing a new car through PCP. By doing this I get 3 year servicing and free insurance for 1 year.

My circumstances are not straight forward. I have not had my own car with my own insurance for a few years. Once I decided I was going to get a car I approached my last insurer who were kind enough to agree to keep my NCD of 9 years and to add my years as a named driver which ends up being 11 years.

Unfortunately if I take the free insurance more than likely I will have to start again as my old insurance company have said they would need to re-asses it again next year.

So my question is what is my better option?

Thanks!

Scooby_Doo.

Can't you usually keep your no claims for 12 months without holding insurance?

bauk

Scooby_Doo. wrote: »

Can't you usually keep your no claims for 12 months without holding insurance?

I haven't had my own insurance for a few years so most insurance companies have said I need to start from zero.

Scooby_Doo.

So you don't have any no claims then go for the free insurance.

patchwork_cat

You will have to do the figures. How much to insure the new car with full NCD and how much next year with only 1 year? I think you will find it is more cost effective to insure it yourself, but you are going to have to go on compare the market etc. to check.

bauk

Scooby_Doo. wrote: »

So you don't have any no claims then go for the free insurance.

If I stick with my old insurance company they said they would honour the NCD so I would be able to keep it. They are only doing this becauce I was a customer before for many years.

Therefore is it worth opting out of the free insurance and keeping my NCD or going for the Free Insurance for this year and starting from scratch next year (or 1 year NCD).

grizzly1911

bauk wrote: »

If I stick with my old insurance company they said they would honour the NCD so I would be able to keep it. They are only doing this becauce I was a customer before for many years.

Therefore is it worth opting out of the free insurance and keeping my NCD or going for the Free Insurance for this year and starting from scratch next year (or 1 year NCD).

As patchwork cat has said I would think it must be in favour of take out your own insurance and keep the full no claims.

Need to check what percenatge discount "full" no claims gives as insures seem offer different levels these days.

You need to do the sums. Get on a comparison site or ask your friendly insurer what the difference would be.

System

Get quotes from the comparison sites.

Do a quote with full NCD, then do a 2nd quote with all other details the same but just change NCD to 1 year.
You could do more quotes, just changing the NCD each time (2,3,4,5 years), but you get the idea.

That will tell you the relative costs and will allow you to calculate if the free insurance for 1 year is worth it or not.

bauk

Thanks guys... I did what you said and without NCD (because the 1 free year does not give me NCD unless I stick with VW insurance for another year) is high but also my excess goes to £3000. The mainstream insurers' excess is reasonable but the premium over £900.

With 12 years NCD next year (if I stay with my old insurance company) the premium seems to drop to just over £400-600... plus I have the ability to shop around.

It looks like the free insurance savings will be wiped out in the next 2-3 years.

vaio

I was bored last night and actually did do the sums, over 6 years the cost of the free year & no NCB option ends up getting on for twice the cost of the alternative