NCD - when does it get 'credited'?

james_joyce

Hi

Sorry but I have a really daft question!

My car insurance policy is about to expire and I want to move to a new company. If I cancel the existing policy before it expires do I lose a year's NCD? Is it better to renew that policy, ensure that an extra year's NCD has been 'credited', and then cancel & move to the new company?

In other words does NCD normally get credited a few week's early, before the year is out, when the renewal notice is sent?

Thanks
James

shelly

james_joyce wrote: »

Hi

Sorry but I have a really daft question!

My car insurance policy is about to expire and I want to move to a new company. If I cancel the existing policy before it expires do I lose a year's NCD? Is it better to renew that policy, ensure that an extra year's NCD has been 'credited', and then cancel & move to the new company?

In other words does NCD normally get credited a few week's early, before the year is out, when the renewal notice is sent?

Thanks
James

To answer my highlight in red, yes, what usually happens is you get a renewal notice about 2 weeks before the end of your current policy. This will state your NCD that you can take to a new insurer.
Read it carefully because it will tell you what to do if you want to accept or decline the renewal.
Keep the renewal letter as a new insurer might request the proof of NCD, the renewal letter is your proof.
We usually make a copy and send the original.

mikey72

Whatever you do, don't cancel your existing policy.
If you do, you will lose the ncd for the year, and probably have to pay a large fee as well.
Shop around when you get your renewal, you usually get a much better price if you move.
If you want to move, tell your existing insurer you don't want to renew, make a note of who you speak to, and then send it them in writing as well.
Don't ignore it or they'll auto renew you, and don't just cancel the dd if you have one.

System

Just to back up what mikey72 has said.

It is important NOT to use the word "Cancel" when you contact your existing insurance company / broker.

Make sure you inform them that you do not wish to renew the policy and will let it lapse on the last day of cover, then your new policy with a new insurance company will start on the same day as your old policy lapsed.