RAC car insurance cancellation rip-off!

agrinnall

Interestingly I couldn't find anything obvious in DirectLine's Motor Policy document to say that NCD can't be used if it's already in use for another vehicle, although I would be amazed if they don't have it covered somewhere. The only relevant reference I could see was that they will give some sort of discount on multiple vehicles insured with them.

soos_2

The guy we spoke at Directline said they "mirror" the NCD on another policy. I think it's a way of enticing us into moving the other car's insurance with them when it comes to renewal. He also said they're the only company that does it.

dunstonh

I found the DL info on no claims discount (its the same as Churchill - cioy & past from DL with the bold red again my edit to highlight it):

No Claim Discount
Every year you hold a policy in your own name without making a claim, you build up a no claims discount which saves you money.

If you go on to accept a policy with us, you will be asked to provide proof of your earned no claims discount.

This proof should be a renewal notice from your previous Insurance Company, or a letter on headed paper from the Insurance Company.

In certain circumstances we may be able to obtain this for you.

N.B. This no claims discount can only be used on one policy at any one time, and must have been used on a policy within the last two years.

mazza111

They aren't. Had Diamond give me a mirror NCD on our 2nd car a few years ago. Their prices have shot up since then and now shop around every year. On my own now so don't know if other companies still do mirroring. They may do it for the first year to get you on board. While it's being mirrored you are building up a NCB on a second policy, so be sure to shop around next year when the time comes.

mikey72

Go ahead with the complaint. It should be a pro rata refund, they can't switch to short term rates on an anual policy.

soos_2

Thanks Mazza. Had a feeling they might do that

soos_2

Thanks Mikey. We're gonna phone RAC soon and use your advice. Also tell them we're moaning about them on this site and we're in discussions with FOS and we're complaining to Watchdog. We'll use anything that might reduce the charges.

PS. Waiting with interest on what dunstonh has to say about that!!!

dunstonh

PS. Waiting with interest on what dunstonh has to say about that!!!

Its up to you what you do. Also, just because you are complaining doesnt mean you are right. There is a good chance they will reduce the charge if you push hard enough but if it goes to the FOS they will likely withdraw the goodwill offer and let the FOS decide. The FOS decision on £50 plus premium due was 5 years ago. It was also the only published example and in that case, they said they expect charges to be relatively pro rata but do understand that charges may be higher at the start of the term as that is where all the costs are.


Have you found out how much Direct Line are going to increase your premiums yet?

Badger_Lady

mazza111 wrote: »

While it's being mirrored you are building up a NCB on a second policy, so be sure to shop around next year when the time comes.

Yep... but of course you're starting from 0. So if the OP currently has 7 years NCD, next time they renew they won't be able to say that they've got 8 years NCD on that car - they'll only have 1.

As I say, grab a bargain now if it works out, but you will still be in the same position this time next year whether you are with DL or RAC.

mikey72

soos wrote: »

The guy we spoke at Directline said they "mirror" the NCD on another policy. I think it's a way of enticing us into moving the other car's insurance with them when it comes to renewal. He also said they're the only company that does it.

dunstonh wrote: »

.............Have you found out how much Direct Line are going to increase your premiums yet?

Why should they?
If they offer to mirror the ncd, they won't be using the existing one, which they know is in use elsewhere.