NCD Caps are a scam !!!!!!

Un-Happy_Car_Owner

Hi all,

I am writing this 'Long post' because I am fed up of the NCD scam that Car Insurers are running.

As you will all know insurers state that they need proof of your NCD from your previous insurer, which you give.

When it comes time to get new insurance 1 yr later, you have been a nice safe driver and had no Accidents or claims of any sort.

You use Comparison sites like Moneysupermarket and get a better quote from another insurer, so you buy it and they ask for proof of your NCD.

Now here comes the scam(s), your old insurer states that you were at or beyond their 'Maximum' when you 1st bought your insurance so the NCD is not only NOT 1 yr higher than last year but has dropped !!!!

i.e. You start with 14 years NCD, 1 yr later they state that their maximum is 9yrs NCD so they can only give you proof of NCD for 9yrs.

This is happening to my Sister and happened to me last year.

I was able to reason with a manager at my company to give me a truthful letter stating my NCD at the correct level.

My Sisters company is refusing to do this using the old 'Computer says NO' argument. ('Our system only goes up to 9yrs NCD and we cannot give you a letter stating anything other than the maximum.')

This is un-fair business practice as this is a type of 'lock-in' for customers which gets worse each successive year.

You will get a better quote from your current Insurer as they can internally take note of the 'True' NCD, while you cannot provide proof to another Insurer that you have more than 9yrs NCD because the 'Computer Says NO'.

Of course this is nothing to do with the computer but a deliberate act to skew the chances of the current customer getting a better quote and leaving.

She was offered a letter stating the 9yr NCD Maximum but with a qualification paragraph added to state she'd had no claims during the year.

We all know that this would be a waste of effort as the qualification would not be accepted by any Insurer I have been in touch with and really smacks of being an attempt to close the issue and get her off the phone !!!!

I am very angry that this is allowed to happen and is accepted.

There must be something we can do ?

Would it be worth complaining to the Financial Omsbudsman Service ?

I am not asking for anyone to lie, just to clearly state the truth in a letter that is accepted by any other insurer.

As I have previously stated I did get my previous Insurer to do this once it was explained, so it is possible.

InsideInsurance

From an insurers perspective, this is predominately to do with having ancient mainframe systems where the NCD field is literally a 1 digit datafield and so it can only count to 9

Even if they migrate on to more modern systems where the difference between storing a 1 and 2 digit number is nothing the problem is what do you do with your millions of customers in your back book which all have 9 years NCD despite having been customers of yours for 30 years and never having made a claim? Show all them as having 9 now rather than the "9 or more" or "maximum" and you get millions of phone calls from people saying its wrong.


Each insurer has its own rules on NCD but the majority give exactly the same discount for 5 years as they do 9 or 19 years NCD. There are some who give less discount for 8 years NCD than another company does for 5 years NCD.

To date I am not aware of a single insurer that gives any form of credit for having more than 9 years NCD and so the issue is not as significant as you believe.

Most insurers will also "happily" provide you with a letter of last years NCD + 1 if you ask them to as they can check the paperwork you sent and see what the number was there and progress it one if they system can only count to 9 because its a 1 digit field.

Changing mainframe systems is terribly difficult, they werent built like modern systems and its not as simple as simply changing the data type of the field in a db to 2 digit.

You are unlikely to be able to go to the FOS because you must first complain to your insurers and all insurers will uphold your complaint and issue the required letter thus effectively blocking you from the FOS as you've no complaint to escalate.

Un-Happy_Car_Owner

InsideInsurance wrote: »

Each insurer has its own rules on NCD but the majority give exactly the same discount for 5 years as they do 9 or 19 years NCD. There are some who give less discount for 8 years NCD than another company does for 5 years NCD.

Thanks for the fast response.

Your quoted paragraph is the reason I am chasing this.

i.e. It is the Majority BUT NOT ALL who may cap at 5 or 9 or whatever Yrs..

As I am outside the industry and a customer I have to assume it may make a difference when chasing quotes.

Many thanks for the hint that the Insurer is likely to uphold a complaint to avoid the FOS.
I will now try going the official complaint route.

Your assistance has been much appreciated.:T

rs65

Un-Happy_Car_Owner wrote: »

As I am outside the industry and a customer I have to assume it may make a difference when chasing quotes.

You don't have to assume. Do a dummy quote with 9 years and then with 14 years. How much difference does it make to the premium.

Cyberman60

rs65 wrote: »

You don't have to assume. Do a dummy quote with 9 years and then with 14 years. How much difference does it make to the premium.

Surely it could make a difference if you have unprotected 9 years NCD (but could be 20 if correct records are kept) and five years are deducted in event of an accident ? The computer would show 4 (9-5) but in reality you should have 15 (20-5) so you could get screwed !!

rs65

Any number of years usually goes to 3 in the event of a claim if unprotected, I believe.

Quentin

Cyberman60 wrote: »

Surely it could make a difference if you have unprotected 9 years NCD (but could be 20 if correct records are kept) and five years are deducted in event of an accident ? The computer would show 4 (9-5) but in reality you should have 15 (20-5) so you could get screwed !!

You misunderstand how it works.


If you use up your protection lives, then have another fault claim, then your ncd is reduced by 2 years from the maximum of 5.


The same thing would happen if you had eg 40 years NCD not protected.


After 1 fault claim you would then have 3 years NCD at renewal.

Cyberman60

Quentin wrote: »

You misunderstand how it works.


If you use up your protection lives, then have another fault claim, then your ncd is reduced by 2 years from the maximum of 5.


The same thing would happen if you had eg 40 years NCD not protected.


After 1 fault claim you would then have 3 years NCD at renewal.

I didn't misunderstand as I didn't know. I was simply putting forward a potential scenario based on guesswork.

forgotmyname

Have you found any insurer that gives additional discounts for more than 9 years?

All it takes is a simple call telling them you started with 14 years and should now have 15 and they will usually send you a letter stating the 15 years.

Rather pointless though because ive not found any cheaper quotes with over 7 years.

InsideInsurance

Cyberman60 wrote: »

Surely it could make a difference if you have unprotected 9 years NCD (but could be 20 if correct records are kept) and five years are deducted in event of an accident ? The computer would show 4 (9-5) but in reality you should have 15 (20-5) so you could get screwed !!

You drop to 3 years upon an NCD impacting claim if you are at Max NCD (or above)

mossstitchmama

My renewal notice from Sheilas wheels states I have 13 years NCB. Not sure that is right however as I have only claimed for a stolen car in 1994 (I had a non fault claim 3 years ago).