Churchill no claims

scotch_Bloke

My mother in law (81 yrs ) unfortunately had a bump with her car. Churchill have now taken 6 years no claims from her despite never making a claim in all the years she has been driving. Is this an industry wide thing or Churchill only. Her quote has now gone up £600 to over £800. Has anyone had experience of this

GrumpyDil

If they have taken her back to three years then that sounds about right as I believe standard is to reduce to three years if you have more than five years or reduce by two years.

Peter999_2

Sadly this is what happened to me on my no fault claim.   I went down from 7 years to 3 but this was restored when the claim was completed.

On my next renewal I made sure I paid extra for No-Claims discount protection.

Aretnap

Yup, traditionally insurers recognised a maximum of 5 years no claims discount and reduced it by two years olif you made a claim. 

Nowadays, as a marketing gimmick, many insurers will recognise more than 5 years. (Which means that you get the same maximum discount, it just takes you longer to build it up - for some reason people seem to think that this is a great thing). But it reminds the industry norm that a claim takes you down to 3 years if you had more than 5 years to begin with.

scotch_Bloke

Thanks everyone. Seems insurance companies are ripping you off left right and centre. Not only have they massively put up renewal prices but also with NCD Government stipulate that we must have insurance so it’s time they also stipulate that the motorist is not ripped off by the car insurance cartel. I will not hold my breath. 

DullGreyGuy

scotch_Bloke said:

My mother in law (81 yrs ) unfortunately had a bump with her car. Churchill have now taken 6 years no claims from her despite never making a claim in all the years she has been driving. Is this an industry wide thing or Churchill only. Her quote has now gone up £600 to over £800. Has anyone had experience of this

NCD is nothing more than a marketing gimmick, it makes even less sense if you consider NCDP. 

Traditionally NCD used to give substantial discounts at 1, 2, 3, 4 and max 5 years  of 30%,40%,50%,60% and 65% or 70%. If you had a fault claim you went down 2 years, 10, 20 or 30 years NCD was identical to 5 years so anything above 5 years still went down to 3 years NCD.

The someone had the bright idea it would be a really good marketing message if they said they recognised up to 9 years NCD but they just changed the scale to be 30%, 40%, 50%, 60%, 65%, 66%, 67%, 68%, 69%. So actually at 9 years you were getting less discount than others at 5 years. Obviously they wanted to ensure the pain of a fault claim was a deterrent so retained the idea that 5+ drops to 3 years.

Though most people dont realise, the vast majority of people have 5+ years, can't remember the exact percentage now but 4+ with no claims in the last 5 years was at the time over 85% of policyholders. So if almost everyone is getting a 70% discount is your base price the real price? Some insurers have changed their NCD structure and so NCDs are now much lower discounts. A forum poster on here a month or two ago found their 5 years NCD represented a massive £10 discount. 

The problem with NCD of cause is it's just a discount. Even with NCDP all it promises is you get X% off the premium. What neither promise is that your premiums won't go up after a fault claim. So absolutely, if you have a fault claim the premiums go up, by less than if you didnt have a higher NCD but still goes up. 


Unfortunately when you hit your late 70s premiums start going up again, your reactions get slower, eyesight reduces etc etc. Compound this with evidence that you're starting to make mistakes by having a fault accident and the effects will be multiplied, just in the same was a 19 year old having an accident has much more impact than a 40 year old.