Reduction in car NCD

Ptarmi57

When I renewed my policy with QuoteMeHappy in August 2022, I declared a claim with a different vehicle, not insured by Quotemehappy.

I also queried what NCD I would be entitled to on the (then current) policy ending August 2022. QMH confirmed it would be 7 years.

When I queried the premium on the new policy, that had reduced substantially in cost, I was advised that the previous claim with a different vehicle, not insured by Quotemehappy, had been taken into account.

I have just (April 2023) cancelled the renewed policy with QMH, as I sold the vehicle, and do not have a replacement. 

The NCD that QMH provided showed only 1 year of NCD. 

I queried this reduction. QMH have confirmed that because of the accident I had with another vehicle, not insured by Quotemehappy, and prior to the start of the latest policy my NCD was reduced by 6 years (I did not have protected NCD).

I haven't been in this position before, is this level of reduction normal?

DullGreyGuy

No, and that still wouldnt explain why its now 0

huckster

No. Query it, as I did not think the whole discount was removed due to one claim. They appear to have removed the whole NCD and are now offering 1 year as a gesture of some kind.

I am pretty sure based on old knowledge that the Car Insurance NCD system did deduct 2 years NCD per claim off a industry max of 5 years.  This was so that people did not suddenly lose all of their NCD and face a very large premium increase due to 1 claim.  But perhaps the industry has changed since ?

Morph4610

Ptarmi - if the claim is not on a QMH policy then your NCD shouldn't be reduced by them. Am I missing something? 

daveyjp

Did the original company provide details of the NCB entitlement to QMH (the 7 years?)  or was it 7 years which hadn't yet been reduced due the claim?

Ptarmi57

Morph4610 said:

Ptarmi - if the claim is not on a QMH policy then your NCD shouldn't be reduced by them. Am I missing something? 

I have the same opinion.

The claim for another vehicle, with another insurer, shouldn't affect the QMH policy. That is what I am hoping to confirm before going to the Ombudsman, as I have followed their complaints procedure.

Ptarmi57

daveyjp said:

Did the original company provide details of the NCB entitlement to QMH (the 7 years?)  or was it 7 years which hadn't yet been reduced due the claim?

I was already with QMH and they confirmed the NCD on their policy was 7 years at the renewal time.

The claim was on a different vehicle, with a different insurer, but I notified them of it as part of the renewal.

Ptarmi57

huckster said:

No. Query it, as I did not think the whole discount was removed due to one claim. They appear to have removed the whole NCD and are now offering 1 year as a gesture of some kind.

I am pretty sure based on old knowledge that the Car Insurance NCD system did deduct 2 years NCD per claim off a industry max of 5 years.  This was so that people did not suddenly lose all of their NCD and face a very large premium increase due to 1 claim.  But perhaps the industry has changed since ?

Thanks! I queried the reduction, and followed their complaints process. QMH still confirmed that because of the accident I had with another vehicle, not insured by Quotemehappy, and prior to the start of the latest policy my NCD was reduced by 6 years.

Ombudsman next I think.

huckster

Yes FOS should be next step.

You could send a data protection subject access request to QMH, to see what the information reveals.

Ptarmi57

An update on this.

After a further 4 attempts to get Quotemehappy to listen, I finally received a response that confirmed that their previous position was incorrect. There should have been no reduction in my NCD due to a claim on another vehicle with another insurer.

All they have offered is a correct NCD which I now have received. I have requested compensation, and will see how that goes, not holding my breath.

In parallel I did raise a case with the FOS.

Aretnap

Glad that it got sorted out eventually.

Regarding compensation, have you actually suffered a quantifiable loss, like having to pay more for another insurance policy as a result? Or is it just the time and inconvenience if having to make multiple phone calls (and a few forum posts) to get it corrected?

If it's the latter then you might be entitled to a token amount for the inconvenience, but it is unlikely to be very much. You can see how the FOS rates these things here. Personally I would accept an apology and move on rather than sinking any more time into this.

https://www.financial-ombudsman.org.uk/consumers/expect/compensation-for-distress-or-inconvenience