Confused about salary sacrifice no claims bonus

DragonQ

Hi all,


I'm considering leasing an electric car for 3 years via salary sacrifice next year because (a) the BIK tax drops to 0%, and (b) I save even more net than the listed prices due to saving 9% on student loan repayments. However, I'm confused about how the insurance works. Would it actually be in my name and thus I could continue my current 11 year no claims bonus to make it 14 years? If not, wouldn't I lose my NCB at the end since it'd be a 3 year gap? I've read some insurers will accept a letter from company car insurers but this isn't quite the same thing.


I understand I could basically swap with my wife every year to insure her car as a main driver but that also has complications, since she's had trouble before getting permission from the insurer to drive other cars while being insured on cars that weren't registered to her.


Basically at the end of it I'd like to say to an new insurer "look here's my 11 years NCB letter, here's another 3 years NCB letter" - would all/most accept this?

AdrianC

DragonQ wrote: »

I'm considering leasing an electric car for 3 years via salary sacrifice next year because (a) the BIK tax drops to 0%, and (b) I save even more net than the listed prices due to saving 9% on student loan repayments.

Aren't you merely delaying them...?

However, I'm confused about how the insurance works. Would it actually be in my name and thus I could continue my current 11 year no claims bonus to make it 14 years?

If your lease includes insurance (few do), then it might be an issue.
But if you're insuring the car, then it's your policy and your NCB.

BTW, few insurers even look at 11yrs - they'll just say "yep, max" - which may be as low as 5/6 years.

Basically at the end of it I'd like to say to an new insurer "look here's my 11 years NCB letter, here's another 3 years NCB letter" - would all/most accept this?

No, because the 11yr may have expired or been lost via a claim on another policy in the interim. You'll hand the lease insurer proof of your max NCB now, and you'll get proof of max NCB at the end of each policy through the lease. It's only the ownership of the car that's different, not how your responsibility to insure it works.

DragonQ

AdrianC wrote: »

Aren't you merely delaying them...?

Maybe, depends on future earnings and future governments.

AdrianC wrote: »

If your lease includes insurance (few do), then it might be an issue.

But if you're insuring the car, then it's your policy and your NCB.

The lease does include insurance. The website's FAQ says:

The Vehicle is fully comprehensively insured against all loss or damage resulting from fire, theft and other risks (including shattering of windows) and for all other third party liabilities including personal injury and damage to property. Fully comprehensive insurance is included as part of the services provided to you by us and your policy document will be sent to you directly by the Insurer.

The motor insurance is a fleet policy. If you already have no claims bonus/discount then you may be able to protect it. When you come to the end of your selected term, the insurer will be happy to issue a letter either providing the accident details or confirming you have had no claims for the period you have been insured by them. You may find that you are able to use the letter along with your existing bonus/discount on a car outside of the scheme, however you will need to check this with your new motor insurance provider.

AdrianC wrote: »

No, because the 11yr may have expired or been lost via a claim on another policy in the interim. You'll hand the lease insurer proof of your max NCB now, and you'll get proof of max NCB at the end of each policy through the lease. It's only the ownership of the car that's different, not how your responsibility to insure it works.

As above, I can't insure it in my name, but it also seems like they don't offer "real" NCB, just the letter which may or may not be valid.

AdrianC

Aha. I suspect that's more due to the salary sacrifice scheme than it being a lease car, then.

Aretnap

AdrianC wrote: »

Aren't you merely delaying them...?

Most graduates will never pay their loans off in full - 70% according to the government or 83% according to the IFS. So the likelihood is that the OP is avoiding repayments altogether rather than delaying them - though it depends on his current and future income levels.

jaybeetoo

Your NCD will probably be zero after 3 years (2 years with many insurers). You may get an introductory discount on your next insurance if you produce your NCD and a letter from the leasing company saying you were claim free for the period of the lease.