Multiple No Claims Bonuses (Car Insurance Question)

[welsh dragon]

How would that work if at the time of renewing a policy you changed your car?

Do you keep your no claims even if in effect you are changing your policy?

If you changed your car, the insurance company would know which car your changing by the registration number, and the NCD on that car would be transferred to your new vehicle.

 

[welsh dragon]

In the past, whenever I've changed my car I've transferred my insurance (and I presume NCD) from the old car to the new one.

Correct. That is a straightforward change of vehicle and the NCD will be transferred accordingly to your new car.

 

[welsh dragon]

As Vernon says, the question is academic. If you have a claim, then regardless of the theoretical NCD applied, the reality is that your risk will reflect the claim, and the premium will reflect your risk.

Of course it will. Unless you have protected NCD in which case you can have 2 fault claims in 5 years without your NCD being effected. your renewal premium wont be effected either.

If you dont have protected NCD and you have a fault claim, then at your next renewal, you will lose probably 2 years NCD, hence your premium will rise accordingly.

 

[CopperBrompton]

The point is that NCD and risk profile are two entirely separate things. NCD is precisely that: a discount on the premium that reflects your risk. Say the NCD is 70% and your base premium is £600. 70% off that means you pay £180.

If you have an at-fault crash, that base premium might rise to £1000. Your protected NCD is still 70%, so you'll get 70% off £1000, which is £300.

 

[Over The Hill]

NCD is just a marketing tool used by insurers. They all just agree to give the same benefit. There is no reason for them to restrict it to one car or indeed to accept a NCD from another insurer. They just know they have to offer a price to match who you are with presently.

Insurers are free to offer cover at whatever price or discount they want. Rather than fight each other they seem to have just agreed a cartel style set of rules that they all work to.

 

[stephec]

When I went to insure two cars for my daughter I was told (forget which company) that she couldn't have 4 year NCD on both cars. On would be 4 and none on the other. I thought NCD went with the driver not the car.

I still don't understand this either.

If the company can accept that you are worth the NCD on one car why aren't you worth it on another?

 

[welsh dragon]

You are, but you have to earn it in the same way you did when you bought your first car and insured it. You started with no NCD and had to earn a certain amount of NCD each year until you were getting the maximum.

If you buy a second car its like having your first car all over again. You have to earn the NCD in that one as well, then both will have they're own NCD. It's not a BOGOF you know.

 

[stephec]

You are, but you have to earn it in the same way you did when you bought your first car and insured it. You started with no NCD and had to earn a certain amount of NCD each year until you were getting the maximum.

If you buy a second car its like having your first car all over again. You have to earn the NCD in that one as well, then both will have they're own NCD. It's not a BOGOF you know.

You can bogof.

If I was to take the second car to a different company and say I had so much no claims with another company would they be likely to offer NCD?

 

[welsh dragon]

You can bogof.

If I was to take the second car to a different company and say I had so much no claims with another company would they be likely to offer NCD?

Sent you a pm, but yes you would have NCD on the second car that another insurance company would accept

 

[stephec]

Sent you a pm, but yes you would have NCD on the second car that another insurance company would accept

Two different companies sounds like the best idea then.

 

[welsh dragon]

Two different companies sounds like the best idea then.

In your case......yes

 

[mr_cellophane]

So if I have 2 cars and earn the maximum 5 years NCD on one can I then start earning another 5 years on the second car ?

 

[welsh dragon]

As soon as you buy a second car you should start earning NCD on the second one as well. I some cases your insurance company may offer you an introductory ncd of say 15% to start you off. At the end of each year the NCD you have on the second car should increase until you reach the max that your insurance complany offer.

 

[welsh dragon]

As soon as you buy a second car you should start earning NCD on the second one as well. I some cases your insurance company may offer you an introductory ncd of say 15% to start you off. At the end of each year the NCD you have on the second car should increase until you reach the max that your insurance complany offer.

You don't have to insure the second car with the same insurance company. You can insure it wherever you get the best deal, and introductory discount to start you off.

 

[Over The Hill]

In your case......yes

Is there really a case where one is better?

I would say the complicated setup and bother of removing one from the joint policy will lead them to be uncompetitive in time. And after all they are still having to cover the same risk. Just seems a bit of a gimmick to me.
I would go with shopping around at renewal time and keeping them keen.



I go with brokers (A-Plan) and they seem to sort it all out and shop around for me.
I have two daughters coming up to first cars and the broker happily had a 20 minute chat about what sort of car, use, policy and setup would be best to save money that probably saved hundreds of pounds.
By contrast I have done the on line way and just got ripped off at renewal time and again.