Car Insurance hint/tip re: no claims bonus's - HotUKDeals
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Car Insurance hint/tip re: no claims bonus's

amanda f Avatar
8y, 2w agoPosted 8 years, 2 weeks ago
Hi

Just wanted to share this in case anyone else falls into the same trap!

I had to claim on a car Insurance policy in 2004 unfortunately therefore having to start building up my NCB all over again in 2005 when it was up for renewal. I thought I would take out a 10mth bonus accelarator policy which I did. I did this again in 2006 and by 4th Dec 2006 had accrued 2 years worth of No Claims Bonus. Yippee.

However, what I did next I now regret! I used the comparison sites to get the best quote, and for my particular car, a 1.8 MG it was cheapest to go with Lancaster Insurance. I was quite happy with them and so used them for a second year, so was with them for 2 full years altogether. Now, in Dec 2008 armed with 4 years of No Claims Bonus's (or so I thought) I decided to shop around for the best deal.

However, what I didn't realise is that with Lancaster Insurance, no bonus is accrued for the entire time you are with them!! So be aware anyone using these!

Not only that, because they don't give a quote based on your No Claims Bonus's from other companies, neither do they aks for any once your policy commences. I have just been informed by them that had I sent in my previous 2 years No Claims Bonus's for the 2 x 10 month policies that I took out prior to going with them, then they would have been added to my account and I would have at least got 2 years NCB to carry forward, but now I have none, because if they are not added to an new Insurance Policy within 2 years then they are lost.

Now I have 0 (ZERO) No Claim Bonus aaaaaarrrrrggggggghhhhhhhh even though I have 4 years of clean driving, all because I didn't know the system!!! I am so annoyed and wish I had known. I asked Lancaster why they didn't mention this earlier, and why they didn't ask me for my NCB they said they just don't. Great!

Back to square one - don't let this happen to you!
amanda f Avatar
8y, 2w agoPosted 8 years, 2 weeks ago
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#1
This sounds wrong to me. If you didn't make a claim with them over the 2 years I suspect they are obliged to provide you with a document which says so. They may just be trying to avoid paperwork or are trying to get you to stay with them. It may be worth pushing a bit more.
#2
Blimey, thanks for the heads up. Im with Tesco insurance and Ive never had a problem with them.

I suppose no matter how tedius it is it's always worth double checking and also reading the small print.
#3
Just a reminder for people to look at quidco when looking for car insurance. As my policy cost £120 with prudential and got £100 back so only cost me £20 fully comp for the year.
banned#4
This cannot be right. They are just fobbing you off and have to provide proof of your NCB to new insurer.
#5
Your best approach might be to phone a few companies, the bigger ones where the telephone sales staff have access to the underwriters (e,g Norwich Union, Liverpool Victoria, Co-op) and explain the position.

I would imagine that you'd get offered some kind of starter bonus. It's unlikely that you'd get anywhere with online quotes as they tend to be completely inflexible. :roll:
banned#6
thought so. this is from their website

Insurance Guide - No Claims Bonus (NCB)
No claims bonus is awarded to you for every annual insurance policy claim free year. The more no claims bonus you have the greater the discount you are likely to receive against your insurance premium. Typically discount is capped at around 65% but some policies reward you for more.
banned#7
and they must accrue previous insurer's ncb entitlements too.

ring them up saying you are making a complaint to the ombudsman so want what they have stated in writing. They'll soon change their tune.
#8
Just had a look at Lancaster website. They offer classic car insurance which is a fairly specialised area and usually involves (at least mileage) restrictions on the insured car. From memory, I think that other companies won't accept no claims discount from these policies. Don't know why but, no doubt, someone in the industry could explain. If OP's insurance was classic car then they could well be stuck.
#9
How many cars are in your household?

Do you have a partner/spouse?

If so you may be able to get what's called a second car discount with Direct Line (& maybe others)

They'll ask how many claim free years of driving you've had.

BTW, Lancaster Ins may not work with NCB/NCD however they are entittled to send you out a letter of confirmation regarding any claims you may or may not have had whilst with them!

Call their legal department & ask for this letter to be sent out immediately as you are wanting to secure insurance elswhere.

Good luck.
banned#10
Pretend you are a new customer and email them saying you have heard that no NCB is accrued on their policies. See what they say lol
#11
tony_s1
Just had a look at Lancaster website. They offer classic car insurance which is a fairly specialised area and usually involves (at least mileage) restrictions on the insured car. From memory, I think that other companies won't accept no claims discount from these policies. Don't know why but, no doubt, someone in the industry could explain. If OP's insurance was classic car then they could well be stuck.


Yep, its classed as a Classic car, no idea why, its only a MG ZS and only a few years old.

Having looked at the small print on the current policy it does say:

"No Claim Bonus is NOT applicable to this policy, nor is it ever accrued during the lifetime of the policy" - this is the bit part I hadn't read when I originally took it out, had I done so I would have gone elsewhere as I was trying to build up the NCB.

... and as said, because they never asked for previous NCB and I hadn't sent anything in to them to have it 'tagged on' to my account then any previous NCB more than 2 years old is lost. There is apparently a standard rule that says if you don't have continuous insurance and there is a break of 2 years then they effectively expire. A bit is mentioned here http://www.askaboutmoney.com/showthread.php?t=24961

Really carp situation really, thats why I posted, I just wanted to warn others not to fall into this and after 21 years of driving hadn't even realised this sort of situation happens! :?
#12
amanda f
Yep, its classed as a Classic car, no idea why, its only a MG ZS and only a few years old.

Having looked at the small print on the current policy it does say:

"No Claim Bonus is NOT applicable to this policy, nor is it ever accrued during the lifetime of the policy" - this is the bit part I hadn't read when I originally took it out, had I done so I would have gone elsewhere as I was trying to build up the NCB.

... and as said, because they never asked for previous NCB and I hadn't sent anything in to them to have it 'tagged on' to my account then any previous NCB more than 2 years old is lost. There is apparently a standard rule that says if you don't have continuous insurance and there is a break of 2 years then they effectively expire. A bit is mentioned here http://www.askaboutmoney.com/showthread.php?t=24961

Really carp situation really, thats why I posted, I just wanted to warn others not to fall into this and after 21 years of driving hadn't even realised this sort of situation happens! :?


I think that the advice really ought to be that you (probably) won't get NCD if you take out classic car insurance. It may be a bit unfair to blame Lancaster for this as I suspect that it is the same on all classic car policies regardless of who you buy them from. I suppose that it's one of those things that you only find out when it happens to you.

However, if you've driven around for a few years without a claim, you should be able to find someone who'll give you a reasonable (50/60%) starter bonus. Trouble is that the premium is still likely to be more than on a classic car policy. :x
#13
I'm surprised other companies will consider your two ten month bonus accelerator years as complete years as normally it's only the company that offered this in the first place that consider these as years although it's perhaps just me that's had trouble with this.

John
#14
tony_s1
I think that the advice really ought to be that you (probably) won't get NCD if you take out classic car insurance. It may be a bit unfair to blame Lancaster for this as I suspect that it is the same on all classic car policies regardless of who you buy them from. I suppose that it's one of those things that you only find out when it happens to you.
......


I agree, its not at all Lancaster Ins. fault, I should have read the small print really and understood it. I just spoke to a friend today that has the same car and she didn't realise this was the case either so suspect a lot of people out there don't realise. An interesting fact to know anyway, hope anyone with an MG or classic car reads this! :)
banned#15
Still doesnt explain WHY NCB is not accrued.
#16
Is this true for all insurers? I've had my 1985 Mini insured for 3 years with Lancaster - my first car (I'm now 23).

I'm now selling her to get something I can use every day. Are there no insurers who will take my 3 years without a claim into account?

(PS tried online quote on a Saxo from Lancaster themselves, was coming out at about £1000 WITH 3yrs NCB included - other insurers are about £750 - £800 without any! Cheapest I've found on a Saxo with the 3yrs NCB is under £500).

Thanks

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