Simple 'No Claims' Query - Please Help!

Sweetchuck

Hi guys. Just a very quick question in relation to car insurance - hopefully someone can help.

I bought a car in early November 2010 and insured it with Tesco. Since then, I have made no claims. Earlier today, I bought another car, using the previous car as a trade-in. I am now trying to arrange insurance for the new car.

The problem is this: I have only completed 11 months out of the first year of insurance, meaning that I am 1 month short of a full year without any claims. As such, when I am getting quotes for the new insurance policy, I am having to state that I have 0 years of no claims, even though I am just a few weeks short of 1 year. That tiny difference makes a big difference when getting quotes for the new policy!

So, question 1: I know that some companies offer an accelerated no claims, but am I right in thinking that I cannot claim to have 1 year of no claims?

Now, question 2: if I can't say that I have a year's no claims, I will probably arrange a short-term insurance policy to cover the next few weeks. If I complete this without any problems, will this allow me to take out an annual policy on the basis of having actually completed 1 year without any claims?

Any advice or suggestions would be gratefully received.

:beer:

LittleVoice

You will need to provide proof of the one year of not claiming. Have you cancelled the other policy yet? Did you not try transferring the policy to the new car - where you would be charged an admin fee but perhaps not much extra unless your new car is very different from the other one.

Sweetchuck

Thanks for your advice. I haven't tried that, but I'll give Tesco a call tomorrow. My new car is considerably less expensive to insure than the old one (trading down to a much smaller engine), and given that the policy is due for renewal anyway, they may be able to do me a deal.

If I do go elsewhere, you say that I would need to provide proof of the one year of not claiming... Would an 11-month policy (Tesco) and a 1 month temporary policy (TBC) be sufficient (i.e. 1 year in total), or would it have to be an unbroken year with the same insurer?

If it has to be the same insurer, is it legal for me to allow the existing insurance policy to run its full course (expires on 5th November), even though I will no longer own the old car from 19th October onwards?

vaio

you need to get tesco to transfer your old policy to your new car. Then, in a months time, you'll have a year NCB and can shop round for a new policy

Sweetchuck

Thanks, vaio. While you were writing your reply, I updated mine: if I can't transfer the new car to the existing policy, do you know if I can allow the policy to continue until it expires (i.e. 3 weeks), even if I no longer actually own the car?

vaio

strictly speaking no, part of the policy will be a requirement to tell them if you sell the car.

In practice, how you word the enquiry about transferring to the new car needs some thought and don't forget that your renewal papers with NCB entitlement will be with you pretty soon.

You really want Tesco to cover the new car or maybe even consider delaying collection on the new car

System

Sweetchuck wrote: »

....
if I can't transfer the new car to the existing policy, do you know if I can allow the policy to continue until it expires (i.e. 3 weeks), even if I no longer actually own the car?

Why can't you transfer the existing policy to cover the new car ?

Have you asked Tesco insurance for a quote for the change of vehicle to cover the last month of the existing policy term ?

You need the renewal notice and proof of NCD before you attempt to move to a different insurer, unless you are willing to lose the existing NCD that you would be entitled to at the end of the policy term.

It is always a good idea to check insurance costs before you change your car, not after you have commited to buying

Sweetchuck

I did check the insurance costs beforehand; the lower insurance cost was actually one of the principal reasons for deciding to buy the newer car.

I simply haven't had a chance yet to check whether or not I can transfer the policy to the newer car, but I will be speaking to them later today to see if this is possible.

Vaio, could you please explain a bit more about what you mean when you say that how I word the enquiry needs some thought?

Quentin

You need to be careful in case they aren't prepared to cover your new car on your existing policy. If that is the case, then you don't want them knowing you no longer have the car which is on your policy!

Sweetchuck

Okay, so let me get this straight...

I'm due to pick up my new car (and hand over the old one) on Wednesday evening this week. I have a 5-day 'bridging' insurance policy on the new car, so even if I don't have my own policy in place, I will be (temporarily) insured to drive away the new car on Wednesday.

As I understand it, I need to call up my insurers today and ask them to add the new car to my existing policy, with the cover for the new car scheduled to begin from Wednesday. Right now, I don't tell them that I will be getting rid of the other car. However, once I have picked up the new car and got rid of the old one, I call them up again to tell them that the first car no longer needs to be insured.

Is that correct? Apologies if these seem like totally !!!!!! questions, but I am a relative noob to car insurance and it seems daft to lose out on a year's no claims discount for the sake of a few weeks.

Monkeynut

Sorry to seemingly hijack your thread somewhat Sweetchuck, but I popped over here to ask a similar question myself, so was pleased to see it had already sort of been asked today!

We are in a slightly different situation, but similar.
My OH bought a new car in August this year (trading in the previous one), and was able to transfer the new one onto his existing insurance policy with Elephant.
This policy is up for renewal in mid November.
Unfortunately in the bad weather last winter he had an accident on the ice, and luckily it was only his vehicle that was damaged and no one was hurt or anything, the repairs were too costly for us to cover so we had to claim on his insurance (which was in it's last couple of weeks!) This was in mid December.

His current policy was a 10 month one as we couldn't quite afford to pay for the 12 months in mid January when the policy was taken out, hence it ending Mid November.

Basically, what I'm wondering now is what is best to do with regards to insurance when it is up for renewal next month. He will be about 4 weeks short of 1 years No Claims, which is making a couple of hundred £££s different to quotes obviously

I'm not sure how we managed to overlook this when we renewed taking out the 10 month policy, otherwise I would probably have just said go for the 12 month and we could have covered the extra money on the Credit Card.
Is there a sensible solution that I've not thought of, or is it just tough luck, and he'll have to renew with no NCD? Of course then next year there will be the same frustration that he will be 4 weeks off 2 years NCD but will only technically have 1.
As Sweetchuck said, it's very annoying that for such a short time period in question, it's so darn costly!!