Inside the science of the NCD!

lordra

So lets take the case of twins, A & B, whose birthdays and insurance fell on the same day, the 1st of Jan. On the 1st of Jan 2010:

1. They turned 25
2. Passed their test
3. 'A' bought a car & insurance
4. B chose not to

Now fast forward to current day. A now has 3 years NCD, B has none. B decides he wants to drive. B is now 28 but since he has no "experience", compared to A, his quotes are about £3k for a dinky little car. He doesn't want to pay that, so what would be his options then?

1. Get added onto A's policy as an addl driver, get a years of NCD then take out his own policy with the 1 year NCD? Is that even possible?

2. Fake a 3 years NCD and submit it to the new provider?

3. Hop onto a motorcycle, get a years NCD there, then transfer it to a car?

4. (Can' think of anything else lol )

olly300

lordra wrote: »

But you haven’t given them permission to contact your previous insurer. And shouldn’t you tell your previous insurer that the new one is going to call them and you give them permission to share that information? They can’t just give it out like that.

Direct Line's terms and conditions clearly state:
1. They will share your information with other groups who are part of UKI
2. They will from time to time share your information with other insurers, reinsurers, fraud and law enforcement agencies, and credit reference agencies.

And I suspect other insurers state the same thing in their T&Cs.

The Information Commissioner doesn't have a problem with companies doing that as the purpose of this information sharing is to:
1. Prevent fraud which is an offence
2. Enable them to process claims against your policy ASAP

InsideInsurance

1) Generally isnt possible, there are some that offer ND NCD but it is a specialist scheme and so only recognised by the same insurer creating lock in

2) An option but the risk of a CUE and CIFAS loading is significant. The later would cause problems for all future credit applications (inc mortgages) as well as increased insurance for life

3) Again, generally not possible but some do allow transfer from bike to car

4) Dont drive/ get insurance until older when premiums will naturally be lower

5) Accept a higher premium

6) Look at the other factors they can change to reduce premiums such as what car they own

7) See if a company car is an option as again some insurers will allow claims free years as a company car owner to be transferred to personal NCD

olly300

lordra wrote: »

So lets take the case of twins, A & B, whose birthdays and insurance fell on the same day, the 1st of Jan. On the 1st of Jan 2010:

1. They turned 25
2. Passed their test
3. 'A' bought a car & insurance
4. B chose not to

Now fast forward to current day. A now has 3 years NCD, B has none. B decides he wants to drive. B is now 28 but since he has no "experience", compared to A, his quotes are about £3k for a dinky little car. He doesn't want to pay that, so what would be his options then?

1. Get added onto A's policy as an addl driver, get a years of NCD then take out his own policy with the 1 year NCD? Is that even possible?

2. Fake a 3 years NCD and submit it to the new provider?

3. Hop onto a motorcycle, get a years NCD there, then transfer it to a car?

4. (Can' think of anything else lol )

What is the aim of this question?

lordra

forgotmyname wrote: »

CUE database is shared between insurers and details history of claims etc..

Its easy to print a sheet off saying you have 5000 years no claims. But its just as easy to get found out.

So there is a database and you can't ever claim false years, even in a situation like the twins, A & B?

forgotmyname wrote: »

Are you looking for ways not to get caught or something?

TOTALLY!

Information on Cue is here:

http://www.insurancedatabases.co.uk/default.aspx

and

http://www.uk.experian.com/insurance/cue/front/html/cue_index.htm

lordra

olly300 wrote: »

What is the aim of this question?

Banter! That was the last of everything I had on my mind and everyone here is doing a fantastic job of answering it! Makes for interesting reading, me thinks...!:j

And also good information to the general public who may come across this thread in their search to stay on the good side of the law!

Information, sharing and exchange, that's what the internet is about! :cool::D

InsideInsurance

lordra wrote: »

So there is a database and you can't ever claim false years, even in a situation like the twins, A & B?

There isnt a single database as you would need a "certificate number" or equiv to uniquely identify an NCD which is a separate thing to a policy as a single person can have more than one NCD, can switch NCDs between policies etc.

This is all also compounded by the fact that NCD isnt universally the same across products and insurers with only some things being common practice rather than industry standards.

There was a recent discussion on why there isnt but in short your talking a project that would cost the industry several hundred million pounds at a bare minimum and would create no competitive advantage to any one company. Without legislation or other mechanisms to force it it would never happen and a piecemeal approach as CUE is wouldn't really add any value.

rs65

InsideInsurance wrote: »

There isnt a single database as you would need a "certificate number" or equiv to uniquely identify an NCD which is a separate thing to a policy as a single person can have more than one NCD, can switch NCDs between policies etc.

This is all also compounded by the fact that NCD isnt universally the same across products and insurers with only some things being common practice rather than industry standards.

There was a recent discussion on why there isnt but in short your talking a project that would cost the industry several hundred million pounds at a bare minimum and would create no competitive advantage to any one company. Without legislation or other mechanisms to force it it would never happen and a piecemeal approach as CUE is wouldn't really add any value.

I thought it was scheduled for 2014.

InsideInsurance

rs65 wrote: »

I thought it was scheduled for 2014.

It could be happening, though I would be very surprised, as I've not dealt with mass market personal lines closely for a couple of years but you normally get to hear about these things if they are in the pipeline.

deutsch

just to comment. if your no claims bonus is not protected, different insurers will have different step backs (number of years).

most insurers state claims that are open (even if if will be settled non fault) affect your no claims bonus at renewal. this is what confuses people. going elsewhere for new business - declaring they have so many years, stating a claim is non fault when actually the claim is still open and the ncb has been stepped back. sometimes tp recovery takes a while and until all is claimed back, the claim is open.

i've seen fake ncb before. i remember someone trying to pass a "norwich union" letter headed paper ncb for 2012. they changed to aviva and they couldn't locate the policy!