Bonus accelerator policies a con?

beefturnmail

Hi,

I know there's already a post related to this but I thought I might bring this more to poeple's attention. Basically, I think the that 'bonus accelerator' car insurance policies where you take out a policy for 10 months rather than a full year and supposedly get your NCB early are a con. I took out one of these with Diamond as I have no NCB history last year and it's shortly up for renewal. Firstly I shopped around with other insurers but none of them recognise the accelerator policy. Having done an online quote with a 1 year NCB on confused.com it was substantially cheaper but without the NCB all the quotes weere uncompetitive compared to my current rate. Never mind, I thought at lease Diamond will give me the 1 year's No claims Bonus but when I phoned them and asked for a renewal quote it was £401 - £10 less than last year.

Moreover, they quoted me £457 for a normal 12 month policy, which if you do the maths, works out at £2 more a month or £20 over 10 months. More than the £10 you get off for the accelerated no claims bonus!

What does everyone else think of this?

I think I'll get the full 12 month policy this time so that next year I'll have a valid 1 years NCB and can shop around.

thegoon

regardless of the type of policy that you get (BAP or 12 month) you will get 1 years no claims. BAP policies are in general cheaper but are only for 10 months and therefore work out more expensive. I suggest when you ring around then you just state you have 1 years ncb. This should show in your renewal proposal form from diamond too. Its worth checking on the prop form to see if it does say your details NCB 1 year. The reason they do these policies are that they make more money on them.

eg BAP 10 month policy £500 = £50 a month for 10 months. 12 months = £600
12 month policy £540 = £45 a month.

This is a very broad example but was told this whilst employed by admiral who own diamond among others who do the BAP policy. Hope this helps.

beefturnmail

Thanks. It seems a bit confusing as I got a quote from Norwich Union with 1 years NCB for £327 but when I spoke to them on the phone and tolod them it was a 10 month BAP, they said they didn't recognise it and could only quote me over £500. Surely if I din't tell them this it could invalidate my insurance if I made a claim?
I
s there any way of finding exactly what your NCB situation is? I don't have a renewal proposal form from Diamond yet - the insurance expires on the 19th July. When should I expect to receive one?

dunstonh

Personally i think its a marketing gimmick to encourage you to stay with the same company. 30 months down the road you will have 3 years no claims with the accelerated no claims discount but if you want to move elsewhere, you will only get 2 years no claims.

I wouldnt do one of these personally

thegoon

when they issue the insurance documents for renewal it will say 1 years NCB. The NCB is down to the company issuing it, it wont be invalid if you state you have 1 years NCB. Diamond are agreeing to issue you with 1 yr NCB although you only have insurance for 10 months. I quote their policy booklet

What is the Diamond Bonus Accelarator policy?
Our bonus accleerator policy enables you to build up your no claims bonus as quickly as possible. It is especially good for younger drivers or those who are trying to rebuild their NCB. Our BAP provides you with 10 months of car insurance, but will earn you a full years NCB, as long as you have no claims during that period.

So therefore you will have 1 years NCB on 19th July. also when you get the renewal ring them and asked them for a reduction etc as they do give some money off. If not just get a quote with 1 years ncb everywhere else.

beefturnmail

OK Thanks, When I get the renewal documentation, I will just ring Norwich Union again (the original cheapest quote I got online) and say it says I have 1 year NCB (if it does) and not mention the BAP.

xela_17

I thought I'd reiterate that the Diamond 10 month accelerator definitely equates to 1 year's no claims. I recently changed from Diamond to Bradford and Bingley and they accepted it no problem. The certificate from Diamond that you have to send to the new insurer also says 1 year no claims, not 10 months.

dunstonh

You are of course lying when you give this false no claims discount. In the event of a claim you may find yourself having problems then.

If you ask the new insurers if they accept the 10 month NCD, they will say no.

scheming_gypsy

it's not false no claims info. When you get your renewal it tells you how much NCD you have. The bonus accelerator boots your NCD not gives you a pointless different one.
I've had the BAP before and just get x years no claims on my renewal form.


You also don't need to 'not mention' the BAP because it's irrelevent, you have x no claims and a document from your previous insurer to prove it.

thegoon wrote:

The reason they do these policies are that they make more money on them.

eg BAP 10 month policy £500 = £50 a month for 10 months. 12 months = £600
12 month policy £540 = £45 a month.

This is a very broad example but was told this whilst employed by admiral who own diamond among others who do the BAP policy. Hope this helps.

not always the case. I had insurance with Admiral and was looking for the cheapest renewal. Admiral 10 month was cheapest at £391. When i got my renewal form through from Admiral the quote was £597

dunstonh

OK, phone up your insurer and ask them if they accept accelerated no claim bonus as equal to normal no claims bonus. They will tell you it isnt. I have checked.

If the renewal gives the suggestion its normal no claims and its accepted by the new insurer, then effectively, you have gained a discount on false terms. If the insurer never finds out, which it probably wouldnt in the majority of cases, then fine, you have got away with it.

scheming_gypsy

well my renewal document says '2 years NCD' nothing about any being bonus accelerator