how does guaranteed NCD work?

littlerock

I have an insurance policy with LV which is for any driver with my permission. It has two cars on it, mine and my partners, which our son also drives from time to time. OH is self employed and made sense to keep policy like this as I used to work in public sector and more insurable.

However he has got busier in last few years and downside is he is driving in heavier urban traffic and getting more impatient and more stressed. He has just had 3rd accident in 4 years where he has scraped someone else's car and his own, trying to squeeze past in heavy traffic. Always in near stationary very heavy traffic and with only minor damage to both parties (no injuries claimed,) but in every case the other driver has been driving a hired or leased car whose owners have handed claim over to accident management companies. So a claim has gone in to my insurers.

I have now said enough is enough and he must insure himself. But I am wondering how guaranteed is a guaranteed NCD. I have a clean record with full NCD of over 9 years.

jjj1980

It depends on the terms of your policy and whether you took out the NCD Protection add-on.

If not protected, a lot of policies have an allowance of 2-3 claims per year, where for the first couple of claims the NCD is reduced gradually. Exceed a certain number of claims and you lose it all.

Probably worth a call to the insurers.

dacouch

jjj1980 wrote: »

It depends on the terms of your policy and whether you took out the NCD Protection add-on.

If not protected, a lot of policies have an allowance of 2-3 claims per year, where for the first couple of claims the NCD is reduced gradually. Exceed a certain number of claims and you lose it all.

Probably worth a call to the insurers.

Guaranteed is a better version of Protected

dacouch

Guaranteed NCD means the Insurers will always allow you Maximum No Claims Bonus with them.

They can and do refuse to offer cover if a client has an adverse claims record. If this happens and you go to a new Insurer, with three fault claims in three years they are likely to not allow any no claims bonus and you'll find in addition a loading for three claims which can be quite steep.

Typically a premium of £300 on guaranteed NCD where you have three claims and are decline renewal would equate to a premium of £1200 upwards with a new Insurer.

He really needs to modify his driving

littlerock

Looking at the policy details (one per car) both cars currently have max75% discount but Peugeot Partner (OH's) is shown as having Protected NCD and Skoda (mine) is shown as Guaranteed NCD. (nb policy is currently in my name and covers both, OH drives Peugeot with my "permission".).

What I cannot find anywhere in the paperwork is difference between Protected and Guaranteed NCD . Also whether Protected NCD is reduced by having a specific number of accidents in a specific time period. Anyone else with LV and able to comment?

(Just to add I did phone LV around a year ago and ask them to explain the difference between Protected NCD and Guaranteed NCD and they couldn't - at least not in any way I found comprehensible ��)

AdrianC

The difference between protected and guaranteed might be as simple as just a different word for the same thing, or it might have an actual difference in meaning - you really need to read the Ts & Cs for each policy to tell.

Either way, you will almost certainly be able to change insurer and have full NCB transferred, but you will certainly need to declare an at-fault claim - and that will make your premium higher than without, before the discount is applied.

Quentin

littlerock wrote: »

What I cannot find anywhere in the paperwork is difference between Protected and Guaranteed NCD . Also whether Protected NCD is reduced by having a specific number of accidents in a specific time period.

See #4 for a full explanation of "guaranteed"


But note that you cannot transfer the "guaranteed" NCD to another insurer (it is guaranteed by LV, and is a way to retain you - though there will be ts + cs which will allow them to cancel or remove the guarantee after multiple claims.


"Protected" means that you can have a claim a year (or maybe every 2 years) before losing some NCD. Different companies operate their protection in different ways, but how LV reduce your Protected NCD after multiple claims will be set out in the policy documents.