Buying Back A Claim

bobby_1

Hi, my son had an accident back in April (his fault) Had a letter today from his old insurers (his policy ran out in May, have insured with a new company declaring the accident and telling them he had No Years Claims Bonus) saying that he could pay the third party insurers directly £601 and not loose his no claims bonus. My question is, what would he gain by paying the third partys insurers? His new insurance policy was £1489

Quentin

It depends on how much ncd he had originally.

Assuming he had at least 2 years prior to the claim, and no other claims during the year then he would get 3 extra years to use against his renewal.

If he had no ncd prior to the claim he will now have one, and if he had one prior he would now have 2.

He should do dummy quotes online to see what difference the reinstated ncd will make to the £1500 renewal, then do the sums.

If it's worthwhile his current insurer may not play ball so he needs to factor in the cost of cancelling the new policy and starting another.

If he has no more claims then the savings will continue over the next 3 years or so depending on how many years ncd he has now.