Insuring a Second Car!?!?!? No claims Discount

Pricy147

I am thinking of purchasing a second car due to the number of business miles I am going to be doing ovr the next few years. I currently have a new car, and dont want to significantly reduce the value - so I thought I'd purchase a second car less than 2k, and run it into the ground.

To my astonishment, my no claims discount (9 years) apparently can only be used on one policy against one car. Is this really true??? Seems obsurd - I can only drive one car at a time! The no claims is also against me and my record rather than the car. If I sell my car - the NCD comes with me - I dont lose it!

Anyone any experience of this - nd know is this is true, and consistent with all insurers. I m paying < 650 on an Audi TT, and and getting quotes on my second car (say a vectra/306/etc) of around the same amount on Third Party FT. Surely I can apply my NCD to both policies?

Are there specialist insurers for insuring two cars?

Any help would be great!!!
Thanks....

Bossyboots

That is my understanding, you can only use your no claims on one car.

As for only driving one car at a time, what happens if the other one gets stolen while you are out? Presumably you would want to invoke the theft cover on the insurance for that car, even if you have an accident in the other one at the same time.

telly-addict

Afraid that you can only use your NCD against one car. You will need to build up a separate NCD for the second vehicle.

As far as I am aware there are no specialist insurers out there for more than one vehicle. Most (if not all) insurers will be happy to have more than one vehicle on a policy.

Another reason for the separate NCDs is to reduce the risk of fronting - a lower risk driver putting the vehicle in their name to reduce the premium, when the main driver is a higher risk individual (perhaps younger or with convictions, etc.).

Sorry to confirm the bad news.

Annie_SW

It is worth shopping around for your insurance though, when I bought my second car the insurer I went with did take into account my existing NCB in terms of the offer they made me.

It is also worth investigating whether to transfer your existing policy/NCB to your new car and get a new policy on your existing one. Although your second car will be worth less, you wil be doing a far higher mileage in it.

Pricy147

Thanks for the advise guys.....think I will do some shopping around. Will see if any insurers take into account the fact its a second car, and offer a competitive premium "unofficially" taking into account the NCD

cuggie

We're with MoreThan
brill company,
can use your ncd on second car, no probs,

been with them for over 5 years now, had 2 cars with them, also got protected bonus cover, which was lucky as each of us had an accident within 3 months of each other but because of paying the small 'protected' bonus fee kept our full ncb

Pricy147

Did MoreThan charge you much extra to ensure the second car?????

telly-addict

cuggie wrote:

We're with MoreThan
brill company,
can use your ncd on second car, no probs,

been with them for over 5 years now, had 2 cars with them, also got protected bonus cover, which was lucky as each of us had an accident within 3 months of each other but because of paying the small 'protected' bonus fee kept our full ncb

Did each of you have a no claims discount? If not, I can't understand how you have managed to get 2 cars under the same NCD. This is a totally separate issue to NCD protection.

If you have, good luck to you!!

MarkyMarkD

Answering the question you didn't ask, your original proposal is NOT financially sensible.

Whatever impact you think that the increased mileage will have on the value of your first car, it will not be cheaper to run two cars. Most of the costs are fixed - the depreciation cost, per extra mile, is really not that great.

If you really think that doing this will save you money, I'd suggest that your primary car is simply too expensive to run and you should just change it for something more sensible.

I think what I'm trying to say is, what's the point incurring all the time-related depreciation on the TT, whilst driving around in a banger?

What Car seem to say that each 1,000 miles knocks £120 off the value of a 4 year old TT. I don't know if that gives you any food for thought or not - you haven't said how much extra mileage you will be doing. If it's 10k per annum, that's only an extra £1,200 off the value - probably similar to the total costs (depreciation, road tax, insurance) on the second car. If it's 20k per annum, I can see where your logic comes from ... but it is logic which only applies because your main (current) car is such a flashy one!

telly-addict

Ian_Griffiths wrote:

Admiral matched my 3 years NCB on my second vehicle.

Never known an insurer to do that before.

Same company as More Than IIRC.

What you don't say is the percentage discount given by Admiral when matching your existing 3 years NCD. Guessing that it's the market standard, you're probably looking at a 50% discount (30% for 1 year, 40% for 2 years, 50% for 3 years, 60% for 4 years and 65% for 5 years). Admiral may of course use a different structure.

It's commonplace for an insurer to give an introductory offer of a 30% discount (equivalent to 1 years NCD). If you have a reasonable driving record and Admiral are trying to retain / grow business, then perhaps it's not surprising that they're prepared to stretch their introductory discount.

Just goes to show that it's worth shopping around and pushing for the best deal possible.

libra10

This happened to my husband last year.
He's had 40 years with no claims at all
yet couldn't claim NCD for a second car.

We did find a good policy though through
using the link on this website for
confused.com

Good luck