Car insurance: No claims Confusion.

jarvo

hi,

My car insurance is due for renewal this month and ive just got my renewal quote through from my current insurer Peugeot.
(This is my first car and i only passed my test 2 years ago.)

I bought the car last year and they gave me 1 years free insurance.
So in theory i have 1 years no claims.

However they sent the renewal quote through and they have stated that i have 6 years "No Claims".

I have been told that the renewal quote is legal and i can use it as proof/reference whan asking other insurers for a quoute?

Is this true?

or will it void my insurance if i use it?

cheers

mark.

wolftastic_2

It is true most companies will accept a copy of your renewal notice as proof of NCD, but if you haven't got 6 years claim free driving behind you, you have a claim and then they find out, then you are in trouble. Honesty is the best policy here.

telly-addict

Although you are would not be dishonestly answering this particular question, you would be failing to disclose relevant information to the insurer. I agree that this could come back to haunt you.

Agree with previous advice that you should come clean at this early stage.

You may be surprised when giving the details over the phone. Explain that you have proof of 6 years NCD, but you have only qualified for one year. They may ignore the point and give you a full discount - I've heard of stranger things happening. Then at least you can honestly say that you have informed the insurer of all the facts at the start of the policy.

Good luck.

MrPdog

Funny my girlfriend had her 206 insured with Peugeot, and they gave her extra no claims bonus, when we questioned the renewal with them, they stated it was an incentive when the policy was taken out. We asked for written proof to be sent which they did.

MarkyMarkD

I have to say that this is a scam operated by many of the manufacturers on their "free" insurance schemes. It seems that with impunity they can stitch up their competitors by making them give 6 years (or 4 years or whatever) no claims discount, when only one year of entitlement is really due.

I'm amazed the ABI doesn't do anything about this, as it's completely unfair.

It's all very well for them to say "it's an incentive" ... but it's an incentive at other people's expense.

jarvo

sorry for no reply, my gas boiler blew up on tuesday so got side tracked.
Really need to get my insurance sorted as it runs out next week.

so many cost this month ive got £££££ flashing before my eyes

Thanks for the advice, i will take the honest apparoach and say ive got 1 years no claims but that Peugeot offered 6 years as an insentive see what tesco say.

it makes a fair difference is cost 1 year = £485, 6 years = £240.

Would be nice to save an extra few ££.

Thanks again.

jarv.

andy88_2

It sounds like the misinformation about the discount is due to the dealer that sold you the car. Why would they do this? To save themselves money. It could be quite tricky resolving this if there are subsequent problems. It wouldn't be very surprising if they accused you of misleading them. Hopefully though it is an incentive discount that they know about.

jarvo

I evetually went with the post office and quoted 1 years ncd.
got it for £379.16

which is a fair bit cheaper than peugeot offered with 6 years ncd. £580

just need to sort out my tax tomorrow aswell

moneyuser

out of interest what kind of car is it and what age group are you in ( <> 25? ), just because that quote seems cheap and I've always found peugeot expensive to insure.

broketiltuesday

Hi. This is a new topic but it's also about no claims confusion so it probably belongs here as well. I'm hoping someone can help:

I am insured with Tesco and though I have held a licence for several years, I only got a car about 1 1/2 years ago (end of 2003). After grief with my insurer of the time, I switched to Tescos in March 2004. Unfortunately, I had to make a claim in June... Doh! therefore meaning that I wasn't going to accumulate any no-claims for that year.

My question is: I renewed my insurance this march, one year on. But when I get to june... next week... I will have been driving, with having made no claims, for one year. When can I expect to be applicable for a no claims bonus? This June/July, when I have been driving without making a claim for a year? Or next March, after I have had a clean "insurance year"?

I hope that's clear. Thanks in advance!

flea72

you will have one years no claims, when you have had a full insured year with no claims - so if you renew insurance in march 2006, you wont get your no claims bonus back until march 2007

you could cancel your policy part way through, when you get to june/july, but it probably wont make that much difference to your premium, once you have taken into account, admin fees, and general increases in premiums between march and june

does that make sense?

flea