Two vehicles, Different Insurance Companies

Quentin

muppet610 wrote: »

Hi it is a misconception that NCD is in respect of being claim free.


The way insurance companies work is that if you pay an insurance company a premium and you don't claim they will give you a proportion of that premium back (which is the no claim discount)....

How do you come to your conclusions?

NCD is awarded in respect of being (fault) claim free

But after being awarded a NCD you don't get any proportion of your premium back at all.

In order to make use of a NCD you have to keep buying new policies.

(If you don't buy a new policy then you get nothing back at all in respect of the NCD you are awarded when the policy year ends)

agrinnall

GingerBob wrote: »

But why? How do they justify this restriction?

Why? Because they can.

Justification? They make more money.

If you are unhappy with the terms of business of your chosen insurer you are perfectly at liberty to take your custom elsewhere.

CLAPTON

agrinnall wrote: »

Why? Because they can.

Justification? They make more money.

If you are unhappy with the terms of business of your chosen insurer you are perfectly at liberty to take your custom elsewhere.

well no, you're not
as all the insurance companies operation the same cartel rules.

forgotmyname

GingerBob wrote: »

But why? How do they justify this restriction?

They justify it because you have collected x amount of years no claims on one policy, you cannot then go and start another policy with the same no claims thats already in use.

Some companies may offer to mirror it but have clauses where you need to stay with them or they will only add on the years that you did stop.

So they mirror your 5 years no claims but you leave after 1 year they provide 1 years no claims not the mirrored amount +1.

If you could start another policy with the same no claims nobody would ever lose their no claims. Have an accident then take out a new policy before reporting it.

agrinnall

CLAPTON wrote: »

well no, you're not
as all the insurance companies operation the same cartel rules.

Yes you are. Just because company B operates the same NCD policy as company A doesn't mean you can't use them - although doing so in the expectation of a different result would be a waste of time, a bit like this thread is turning out to be .

ninetyfables

If you declared the bonus as actual, ie. Free to use on this vehicle, and not being used elsewhere that this was incorrect and they are well within their rights to up your premium or cancel. If your friend had spoken to a Broker, most companies now will take into account bonus on another vehicle and 'mirror' provided you meet a set of criteria from them.

Piercedmrsp

The only time I'm aware of where an NCB can apply to two different policies is as forgotmyname stated where a company gives the benefit of an existing NCB when taking out an additional policy.

For example, I own two cars - my main day to day one and a modified 21yr old 4x4 for fun and playing in mud of a weekend. I have 7yrs NCB on my main car. When I insured the 4x4 at purchase last July it was done so on a classic car policy strictly on the basis that it was a second vehicle and based on the car's age. Part of the way the policy works is I cannot earn NCB on it directly no matter how many years I renew it without claiming but I will always be given the benefit of my main car NCB, whoever it is insured with (they are insured with separate companies and probably always will be).

For me this worked out much cheaper than taking out a second full policy and starting with 0 NCB, especially as it requires specialist insurance due to the modifications. In your friend's case it sounds like s/he has simply purchased a second "normal" vehicle and tried to use their NCB twice. You simply can't do this. 1 policy = 1 NCB, 1 NCB = 1 policy. If the car is something more specialist then s/he should contact a specialist insurer for a more appropriate policy (I went through Adrian Flux but there are a number of vehicle specific insurers out there too).