Insurance No Claims

the_why_bird

So I messed up. I'll start by saying this is my fault.

My new lease car overlapped with my old one, so I needed to keep my old insurance for a few days after my new one started. Totally different insurance companies since the old one wouldn't insure the new car.

I forgot to cancel the old one. The new one was purchased on the basis that I have eight years no claims. But the old policy (on which the no-claims was active) wasn't canceled until the new one had been active 32 days - over the 30 days grace they allow.

So now I have to pay as though I had 0 NCD (which more than doubles the price but as I said, my fault). The new insurers tell me the systems will be updated so if I tried to cancel this policy and start over, it'd still be as though I had zero no claims discount.

Is that right? I accept fault for not canceling promptly and expect the penalty in this year's policy, but wow, it stings to lose my NCD which I've built up since I started driving. My parents want me to gather my documents and write to the ombudsman arguing that I should be allowed to use my full no claims next time I renew since I have never claimed. My parents have a stake in this because this is a company car to our family business (though I will of course cover my own costs). But to be honest, we have enough going on in the family with a newborn and radiotherapy and business woes that I don't want to fight a futile battle. Please tell me - is it just a case of tough luck, face the consequences? Or is there an argument to be made here?

thanks for reading

Spicy_McHaggis

So what have they said has happened to your no claims?

Can you not cancel the policy and take out a new one using your no claims?

InsideInsurance

Ultimately its their choice who they accept and on what terms, if they say they wont allow you to return with the NCD then they can do that.

Their decision only impacts them though and anyone else who will cover you will allow you to use the NCD.

Check the cancellation costs for the existing policy and work out if its cheaper to let this one run through to term or to cancel it and buy elsewhere with the NCD

the_why_bird

Thanks - I asked that and the woman I spoke to said if I canceled it would have to be passed to adjustments and show that I had zero no claims in the future. She specifically said it would affect me buying from anyone. Is that wrong? It would be significantly cheaper to cancel and re-buy elsewhere, but I don't want to inadvertantly commit fraud by doing so.

Also the new insurers now have my proof of no claims, will I be able to get it back? The letter said they will not re-issue it.

InsideInsurance

the_why_bird wrote: »

She specifically said it would affect me buying from anyone. Is that wrong? It would be significantly cheaper to cancel and re-buy elsewhere, but I don't want to inadvertantly commit fraud by doing so.

Also the new insurers now have my proof of no claims, will I be able to get it back? The letter said they will not re-issue it.

Yes its wrong and not fraudulant to do it.

People can have multiple NCDs because one NCD can only be used on one vehicle at a time so as people buy and sell vehicles or go from a 1 to 2 vehicle (or reverse) household they start getting extra ones.

If its questioned by the new insurer you simply explain there was a period you had the two vehicles and the old insurer wouldnt accept the new vehicle and so knowing you cant use the same NCD on concurrent policies you werent able to use the old NCD on the original policy. Job done.

the_why_bird

InsideInsurance wrote: »

Yes its wrong and not fraudulant to do it.

People can have multiple NCDs because one NCD can only be used on one vehicle at a time so as people buy and sell vehicles or go from a 1 to 2 vehicle (or reverse) household they start getting extra ones.

If its questioned by the new insurer you simply explain there was a period you had the two vehicles and the old insurer wouldnt accept the new vehicle and so knowing you cant use the same NCD on concurrent policies you werent able to use the old NCD on the original policy. Job done.

So just to clarify - I can now cancel this current policy (I have paid the difference now) and it will just be as if I never used my old no claims on that policy? And then I can use the no claims from the policy that ended two weeks ago on a new policy?

Any idea how to persuade my ex-insurers to send me another proof of no claims?

InsideInsurance

the_why_bird wrote: »

So just to clarify - I can now cancel this current policy (I have paid the difference now) and it will just be as if I never used my old no claims on that policy? And then I can use the no claims from the policy that ended two weeks ago on a new policy?

Any idea how to persuade my ex-insurers to send me another proof of no claims?

Just ask them for a duplicate, it really shouldnt be a big deal, things go missing in the post etc all the time either on its way to you or en route to your new insurer etc

You didnt use it effectively because of the overlap. The only thing Id add is potentially paying a cancellation fee to the existing insurer.

the_why_bird

Thank you. Cancellation fee is fair enough since I made an error, I just don't want to get ripped off.

arcon5

They would show zero NCB. As NCB can only be used on one policy you can have incurred different sets of NCB. So for example you could have two cars but not multi-car cover, so two individual policies, you use your 2 years NCB for example for the first policy, you can't use it on the second policy too, start new policy starts with 0 ncb. Two years later you have 4NCB and 2NCB on the other policy. You cannot combine them though.

So the new insurer has a right to say you didn't have 8yrs ncb as it was in use, so they calculate the premium based on 0yrs NCB. But with the old policy now expired, the old policy NCB has not been used so you have effectively accumulated 8yrs and 0yrs separately.


At least this is how I understand it.