Why is car insurance so complicated

Jason_Chapman1

I have just renewed my car insurance and it was nothing but a pian. My new insurance company wants my drivers licence and proof of no claims.
My old insurance company didn't even bother to send out a renewal form, and have just charged me £38 to cancel my old policy.

Do these insurance companies own computers these days, surely details of my licence and my no claims proof is available at the click of a mouse to these companies. What's going on? :wall:

lisyloo

Do you have proof your old insurer did not send a renewal notice?
Or do you mean you didn't receive it?

Do you have a diary? If so put the date in for next year. If not consider what system you want to use for tracking these kind of dates so you are not reliant on insurers or Royal Mail (I put my dates in a month in advance which gives me time to shop around).

There is no database of no claims, so it's quite standard to send it in.

Doesn't seem particularly complicated to send a few bits of paper in and keep track of one date???
Do you miss birthdays, MOTs, dentists?
Most people seem to be able to manage these things one way or another.

vax2002

If you pay by direct debit they will auto-renew the policy, a right con merchants trick...

InsideInsurance

Yes they own computers, or at least most do, but that of cause isnt the main problem.

What is the main problems are things like the data protection act that stops organisations from giving out information to anyone who happens to contact them, that to get the DVLA to make system changes you need governmental funding and in the current economic climate it probably doesnt get very high up the priority chart and ultimately you are looking at an industry of competing companies who are unlikely to be willing to work together to implement new systems at great costs which give them no competitive advantage.

Jason_Chapman1

Up until a few years ago you didn't need all this material. I remember going into an insurer and just handing over details of my vehicle, and that was about it, they used to ask you if you had any convictions, which is held on a national datbase. I never used to get asked to produce proof of no claims, so the system has changed in the lest few years.

vax2002

They only keep records of what benefits them...

InsideInsurance

Jason_Chapman1 wrote: »

I never used to get asked to produce proof of no claims, so the system has changed in the lest few years.

How NCD is dealt with varies and always have. Obviously in the old days you used the same broker every year and so they did the sending proofs of NCD etc for you and so it was invisible to you.

27 years ago when Direct Line was formed as the first direct to consumer insurer they started asking you to send in the proof yourself.

More recently we have had a proliferation of different options such as those that only check it at claim stage, those who will call your former insurers on your behalf and hope they can get round DPA etc.

As to proof of ownership and driving licenses, again this simply varies between providers. Most of the direct insurers and larger brokers tend to do this by sampling or only at the time of claims. Smaller intermediaries and brokers are keener to do it up front, certainly some will have negotiated better rates from the insurer in exchange for ensuring that they are checking 100% of new business documents up front.

lisyloo

Up until a few years ago you didn't need all this material.

I can't agree with you there.
I've been buying motor insurance for 25 years and pretty much always had to send in the NCD.
Might have been an exception if your broker did it for you.
You are free to use a broker and get them to do some of the legwork rather than DIY.
Please don't extrapolate one experience to the rest of the world. It's not always the case that your experience is that same as everyone else's.

rs65

Jason_Chapman1 wrote: »

My new insurance company wants my drivers licence and proof of no claims.

It seems some insurers do this and some don't. Sadly there are regular threads here about insurers that cancel cover as they have never received the documents despite having been sent by registered post etc.. It seems post to them goes astray as do reminders that they send. If I was you I would check with them that they have received your docs.

Dangermac

vax2002 wrote: »

They only keep records of what benefits them...

Or what they are entitled to keep.

They dont have access to other insurer's systems in order to verify No Claims Discount, and they dont have access to the DVLA system.

As usual, your comments are completely vitriolic and adolescent.

DM

rs65

Dangermac wrote: »

and they dont have access to the DVLA system.

Was there not a thread on here about Chaucer having access. Something about the extra premium derived from undisclosed claims exceeding the cost of the access?