Simple 'No Claims' Query - Please Help!

Quentin

Sweetchuck wrote: »

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......

You should just ask your insurer about getting cover for a new car you are thinking of getting.

Ask them if they can cover it on your policy and how much it will be.

If they don't cover it then you are "back to the drawing board"!

Assuming they will cover it, then all you need do is instruct them to swap vehicles from the day and time you will want cover on the new car.

Quentin

Monkeynut wrote: »

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

Was this 10 month policy an "accelerator" type deal where they give you 1 year's NCD even though it's just a 10 month policy? If so you will have 1 year to use at the policy renewal date. Check the policy to see.

But if there is no NCD associated with this 10 month policy, then you will have none to carry over, and must start again with nil NCD.

vaio

OP, you need to ring Tesco and tell them you are thinking of changing your car and find out if they will cover the new one and what the extra premium will be together with a reference number or name of who you speak to..

If they say yes then all is good, ring back and arrange the swap over and in three weeks you get a years NCB for when you shop around for a new policy.

If they say no then you really need to think about delaying collection of the new one until the policy runs out and/or you get the renewal documents showing your NCB at which point you also will have a years NCB to apply to the new car policy.

If you transfer ownership of the old car to the dealer and Tesco won’t cover the new car then you run the risk of Tesco cancelling the old policy which means you lose a years NCB and get to pay them an admin fee (£50 seems normal) for the privilege.

System

Sweetchuck wrote: »

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.

No, that is not correct.

When you change your car, it is normal practice to inform your insurance company that you simply want to swap the policy from the old car to the new car. The existing policy then covers the new car from the date and time you pick up the new car, up to the existing expiration date of the policy.

Then you will have earned your full year NCD on the policy so that if you wish, you can get quotes from the renewal date for next year's cover which will entitle you to the NCD.

I do not believe you will have any problem swaping the policy to the new car, that usually only occurs if you change to a more powerful or expensive car that the existing insurance company do not normally cover, only in that type of circumstance would it cause minor problems when you change cars.

thenudeone

If Tesco won't cover the new car for some reason, and you can't delay getting the new car; it may be worth getting a short-term policy to cover the new car for a few weeks (or, if the timing is right, take out an annual policy but cancel it within 14 days, if it's cheaper even after including cancellation charges). Leave your existing policy to run to its natural end. Then you can use the NCD from that policy for an annual policy on the new car, with 1 year NCD.

I know some people will say that if you don't own the old car any more, you don't have an "insurable interest" in it and can't have an insurance policy on it; but in practical terms I don't think it matters because once you've sold it you will definitely not be making a claim. The insurance company will never know and even if they do find out I don't think they would be concerned - after all they have received a premium for that period even though they no longer have any risk!

vaio

thenudeone wrote: »

If Tesco won't cover the new car for some reason, and you can't delay getting the new car; it may be worth getting a short-term policy to cover the new car for a few weeks (or, if the timing is right, take out an annual policy but cancel it within 14 days, if it's cheaper even after including cancellation charges). Leave your existing policy to run to its natural end. Then you can use the NCD from that policy for an annual policy on the new car, with 1 year NCD.

I know some people will say that if you don't own the old car any more, you don't have an "insurable interest" in it and can't have an insurance policy on it; but in practical terms I don't think it matters because once you've sold it you will definitely not be making a claim. The insurance company will never know and even if they do find out I don't think they would be concerned - after all they have received a premium for that period even though they no longer have any risk!

Not strictly true, if the OP sells it without cancelling the insurance and the new owner is involved in a fault accident or it gets stolen and does some damage then I'm pretty sure the OP’s insurance are liable under RTA unless the new owner has taken out a new policy.

To add the icing on the cake, most policies also include a term that would make the OP liable to repay the costs if a claim as described above was made.

glasgowdan

I assume by now that the OP has called Tesco and they are going to swap the car on the existing policy - tell me this is the case? I don't see why they wouldn't, all things considered.

Sweetchuck

Hi guys, quick update.

Spoke to Tesco and they have told me that there will be no charge whatsoever (not even an admin fee) to change over the cars for the remainder of the policy.

Many thanks for all those who offered advice - it really is appreciated, and the one year no-claims is very, very welcome! Have a cyber-pint on me!

:beer: