No Claims Discount about to expire - how to preserve?

Jimmy_Boy

Hi,

Im in a situation where I have been without insurance for 21 months meaning after a 2 year lapse ending in March 2018, my 10 years no claims discount will be lost.

Im keen not to loose this and am trying to brainstorm possible solutions. I will be in a position hopefully by May 2018 to buy tax and insure a car that I want, but this will be after the 2 year NCD expiration.

Possible Solutions

1) Buy a cheap £300 - £400 car and insure it.

Pros
This buys me some time where I can save up to buy a car I want

Cons
Initial outlay for car which may not be recouped on sale
The insurance policy may of been cheap for the £300 car, but transferring the policy to the new car may be a lot more expensive than just buying the insurance for that car in the first place (I assume I can transfer the policy to the new car in X months?)


2) Insure a friends car

Pros
No outlay of buying a car

Cons
Friends may not be too keen on the idea
Policy transfer may be more expensive (as described above)


3) Speak to previous insure about extending NCD expiration date

Pros
No unnecessary outlays

Cons
Would feel a little uncomfortable going past the 2 year expiration date, just in case somewhere in small print there was a sting in the tail that meant I ended up loosing my NCD


Any words of advice?

Kind Regards

forgotmyname

Is buying a cheap car and insuring something your not going to use going to be cost effective?

Jimmy_Boy

I think it possibly could be cost effective when you factor in that insurance after loosing the NCD could be double what I pay if I was to keep my NCD. Hopefully I could get sell the car for £150 ish which would recoup some of the initial outlay.

Im open to suggestion though.

AdrianC

It's very unlikely that any of those ploys will make enough of a difference to be worth the hassle and expense.

"10yr NCD" is irrelevant. You have max NCD, which varies from insurer to insurer - but is unlikely to be more than 6-7yrs.

vikingaero

Buy a banger.

Don't dual insure a car as you are running the risk of 2 claims per incident and have no control over the other driver.

Quentin

Currently co-op take NCD up to 3 years old

GunJack

option 1, and you'll have a car!!! No-brainer....you may,after a while, wonder why you never did this earlier

EssexExile

It rather depends on what you pay for insurance, I wouldn't go to the expense of buying, insuring, taxing & maintaining a car just to maybe save a few quid sometime in the future.

DUTR

Jimmy_Boy wrote: »

I think it possibly could be cost effective when you factor in that insurance after loosing the NCD could be double what I pay if I was to keep my NCD. Hopefully I could get sell the car for £150 ish which would recoup some of the initial outlay.

Im open to suggestion though.

You may well get a new customer discount which offsets the NCD you are trying to save.