no claims bonus discount

katybsim

Hi, maybe I'm just thick - maths was never my strong point - but something here just doesn't add up.

When I joined Saga insurance in Aug 2007 I had built up eight years protected no claims discount with Budget. All was fine until last year when my husband had a very minor fault bump. By my reckoning I would have had 12 years protected NCD then but when I came to renew Saga offered my a 60% discount but the years of no claims was down to 4.

I queried this and was told it was the discount that was protected, not the claim free years and that 60% was the maximum they offered representing four years in Saga terms.

My renewal is coming up and I was going to shop around but according to my renewal notice I now only have five claim free years. Can anyone help with info on this?

Quentin

It's correct.

You have 5 years.

If not protected you would only have 3 now.

InsideInsurance

If the NCD is protected then you will have what you have accrued for NCD and your claims history is now impaired.

All insurers max out the amount of discount at a certain number of years, traditionally it was 5 years but some are higher at 9, by the sounds of it saga is lower at 4.

Insurers typically have ancient IT systems, often held together with sellotape and string, and when they were built flexibility wasnt a consideration. As such for many insurers their systems stop counting NCD once it hits their maximum value and when they output it to a letter it will typically say something like "5 or more years"

If you have correctly worked out that you have 12 years NCD then you can enter this and ask Saga to provide you with a letter stating that you came to them with X years and since being with them you've had Y years claim free, 1 claim but protected NCD and so total NCD is 12 years.

The one challenge could come from how many years you had when you joined them and how long ago that was. If it was too long ago they may no longer have the original proof you sent them and if their system only counts to 5 then if you came to them with 7 years that'd have been entered as 5 thus causing disparity but you could try the prior insurer to them to see if they can reproduce the proof of 7 years.

katybsim

Thanks very much for your reply - yes four years is the most Saga credit you with which represents 60% which is their maximum discount. But obviously when going through search comparison sites it makes a big difference to the premium if you ask for a quote on the basis of four years rather than the 12.

Fortunately - a miracle for me! - I still have the original letter from Budget showing proof of my 8 yrs NCD when I joined Saga. Are they likely to write confirming what you suggest or are they under a legal obligation to do so? So far they have been less than helpful.

I was worried about getting a quote on the basis of 12 years and coming unstuck if Saga proved awkward and it invalidated any potential claim.

Quentin

How "old" is the proof?

Most insurers only accept it up to 2 years old.

katybsim

I have the letter when I left Budget in August 2007 confirming that I had eight years no claims discount at that point. I have been with Saga ever since and have only had the one claim against me last year. At that time my NCD was protected

Quentin

katybsim wrote: »

Thanks very much for your reply - yes four years is the most Saga credit you with which represents 60% which is their maximum discount. But obviously when going through search comparison sites it makes a big difference to the premium if you ask for a quote on the basis of four years rather than the 12.

Fortunately - a miracle for me! - I still have the original letter from Budget showing proof of my 8 yrs NCD when I joined Saga......

In your original post you stated they have put 5 years NCD on your renewal (not the 4 mentioned above)??

My renewal is coming up and I was going to shop around but according to my renewal notice I now only have five claim free years.

If it says 5, then compare quotes (anonymously) with 5 and 12 years NCD, and if there is a significant difference with your chosen insurer contact them before buying a policy and get them to agree (in writing!) you can use the 2 proofs to show your cumulative 12 years.

You don't actually have "five claim free years" (because of the claim), and should still disclose the claim under your driving history.

katybsim

Thanks, Saga is very confusing. My actual renewal only says 60% and doesn't state years and when I rang to query this they said last year it was four and after a claim free year it is now five. Yet in the past when I challenged this they said the way their system works 60% is their maximum discount and represents four years. Dealing with their customer services department is like talking to a brick wall.

Quentin

They should know that just putting % won't satisfy most insurers.

See if you can get to speak to a manager and get a proof stating years.