No Claims Discount

Last post Mon, Mar 03 2008, 8:41 PM by RED ARMY. 8 replies.
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  •  Mon, Mar 03 2008, 8:41 PM

    Re: No Claims Discount

    Yes augi i work in insurance and have done so for over 4 years.

    Insurers have to put the car first as its called car insurance so thats the first thing they think about it,

    If it was called personal driving insurance then you would have a point.

    • Post Points: 5
  •  Mon, Mar 03 2008, 12:30 PM

    Re: No Claims Discount

    RED ARMY - Honestly, do you work for an insurance company?

    I still cannot see the point of putting the car first since it's age and mileage etc are reflected in the premium.

    • Post Points: 20
  •  Fri, Nov 02 2007, 3:56 PM

    Re: No Claims Discount


    when i mean starting from scratch i only ever meant the ncd side of things,when the customer has had 10 years of driving experiance and is still using the ncd on the other,i never said that shouldnt be taken into account.

    im some ways the insurers could do better around this,if the car is of similar group rating then maybe we should allow ncd to duplicate onot the second car(im sure some companys do this already).

    i still believe from a business point of view that the main focus of risk is the car in question,ive seen plenty of cases where customers who have driven ford mondeos or ford fiestas all their lifes,get a mazda mx5 or a bmw 3 series and expect to get second car discount..why if they no previous history of driving that sort of car.

    car comes first,driving ability second .

    • Post Points: 26
  •  Fri, Nov 02 2007, 3:36 PM

    Re: No Claims Discount

    Hi DavidG and welcome to the forum - if a little belatedly ...

    The insurance racket is a little difficult for anyone with a modicum of logic to follow and I have to agree with many who believe that NCD is NCD and should be driver-related and not vehicle-related (watch RED ARMY jump at this one).

    Basically NCD is accumulated on a per vehicle basis and can only be used on another vehicle if the policy is surrendered. In other words, the UK system currently states that each vehicle earns its NCD status NOT the driver, however if the driver makes a claim on one vehicle it IS taken into account an all policies, so this is a clear case of the insurance market having their cake and eating it.

    So, you are right, if you have one vehicle that you have driven faultlessly for ten years and you then buy another, it is completely unreasonable that your driving record is not taken into account and you have to start from scratch with another vehicle. That, however, is the way that the system is set up and I'm afraid it is unlikely to change. I have often tried to explain that I can only drive one vehicle at a time, and therefore it is ME who earns the NCD and NOT the vehicle, but I'm afraid I do not have the money to challenge the legality of the insurance world in court to prove the point.


    • Post Points: 20
  •  Fri, Nov 02 2007, 3:04 PM

    Re: No Claims Discount

    the ncd does not die with the car....you can transfer the policy onto a new car if you got rid of the old car at the same time.

    if you had to insure seperatly then got rid of the car you had ncd on,then in some cases you can transfer the ncd over,or cancel the policy you had 0 ncd on and start again insuring the new car with the ncd you had used on the car you just sold.

    when insurers ask for a no claims discount declartion,they mean ncd that is not being used on other cars,ncd that is free to be used and is not being used on any other policy.

    some insurers do specificaly ask you whether are using the ncd on another car,some just expect that you are not.

    • Post Points: 35
  •  Fri, Nov 02 2007, 2:50 PM

    Re: No Claims Discount

    Different companies have different rules.

    Some companies will let you only build up your NCB on one car at a time. When you change your car, the NCB gets transferred.

    Other companies will let the individual, rather than the car, build up the NCB. If you have 2 cars, they will give you a NCB on both. You do need to declare that you have 2 vehicles and any necessary information about othe drivers which could increase the premium a bit.

    If you shop around, you should find a company that is suitable flexible but remember that the main job of insurance companies is to get as much money from you as they can.

    • Post Points: 5
  •  Fri, Nov 02 2007, 2:44 PM

    Re: No Claims Discount

    It seems to me that NCD dies with the car.
    Would I be right in that assumption?
    If I have 4 years ncd and get a new car , I begin again?
    If I sell a car that I insured using a ncd , I can no longer carry that discount over....on anything ?
    When I'm asked by a prospective insurer to declare my ncd, what does he mean , given that I'm insuring another car ?
    I can understand that a car that has never been insured by me before will have to start from zero but why am I asked for a no claims discount declaration, then given a quote which I accepted and then told that it isn't valid(after I had paid a year's premium).
    All this only came about when I called them to ask about an unrelated item.

    All civil answers will be appreciated !


    • Post Points: 35
  •  Fri, Nov 02 2007, 11:55 AM

    Re: No Claims Discount

    i dont understand why it would see strange to start from sratch..you have never insured the car before even if the car is a similar model etc..so as you have not built up any ncd on that specific car you should not be able to get any ncd.

    However,you can get a multi car policy from certain companys,or certain companys will give you some form of intro discount...you will have to shop around a bit cos it all depends all the individual case.

    • Post Points: 26
  •  Fri, Nov 02 2007, 10:51 AM

    No Claims Discount

    I have just bought another car and insured it with 4 years No Claims Discount. The no claims was on another car that I own and I have just been told that I can only have no claims on 1 car at a time. I am having to cancel the policy and have been looking elsewhere for a quote. The quotes are all at least double what I paid.
    I know I'm showing my ignorance of these things but can someone tell me how I can use my no claims discount to benefit myself? Is there a point to it if I have another car? I want to use it to reduce my premiums on the new car. Why can't I?
    I have bought another car and have to start from scratch. Seems strange and it's got me beat. Is it possible to transfer no claims discount? Can I use it for the car I've just bought, which is of higher value than my other car?

    I hope someone can enlighten me on this one.

    Kind regards,

    • Post Points: 35