Insurance Companies "Stealing" No Claims Discount

[IanD]

This has really annoyed me so just want to get it off my chest.

Last year at my insurance renewal, I'd built up 12 years no-claims discount and Admiral sent me a letter to prove it when I switched to Hastings. This year, I switched to Elephant but on my Hastings renewal notice they stated I only had 9 years no-claims - because the maximum they allow on their policies is "9 or more years". Fortunately, I kept the letter from Admiral (although I thought I'd shredded it and it took a lot of finding) otherwise Hasting's underhand "capping" of my 13 years blame-free driving record would have cost me an extra £150 on my premium (already particularly high this year as I have added 2 daughters just learning to drive!).

Anyone else switching insurers every year (i.e. anyone with any sense) would be advised to keep every year's renewal notice in case they end up in a similar situation.

 

[enviro]

This is worth a read, if links are allowed.

http://www.confused.com/car-insurance/articles/car-insurance-buyers-guide-no-claims-bonus-explained

Also worth remembering is admiral, elephant and bell are all the same company and bell has always been the cheapest for me.

 

[swj99]

...........otherwise Hasting's underhand "capping" of my 13 years blame-free driving record would have cost me an extra £150 on my premium...........

Unfortunately insurance companies cannot always be trusted to do the right, or decent thing, so it's worth keeping records in case the worst should happen.

I can think of many, many stories about insurance companies, and even some brokers and the unacceptable and underhand ways they sometimes behave, but it would take hours and I can't be bothered to write them all down.

Insurance companies are similar to bookies, but with a bigger and more expensive office. Betting on sports events is not compulsory, whereas motor insurance is. The insurance industry is long overdue for an overhaul and tighter regulation. Insurance companies are institutionally inept and need to be treated as such.
Never assume that an insurance company will act in an intelligent, proper or correct manner, or in the best interests of it's clients, shareholders or policy holders, because in many cases, they don't. Many of the people who work for them don't get paid enough money to think, and are not allowed to use their initiative.

 

[Condor7]

This has really annoyed me so just want to get it off my chest.

Last year at my insurance renewal, I'd built up 12 years no-claims discount and Admiral sent me a letter to prove it when I switched to Hastings. This year, I switched to Elephant but on my Hastings renewal notice they stated I only had 9 years no-claims - because the maximum they allow on their policies is "9 or more years". Fortunately, I kept the letter from Admiral (although I thought I'd shredded it and it took a lot of finding) otherwise Hasting's underhand "capping" of my 13 years blame-free driving record would have cost me an extra £150 on my premium (already particularly high this year as I have added 2 daughters just learning to drive!).

When you take out your motor insurance for the first time, insurance companies will give you a discount for every year you drive without making a claim.
There can be slight variations depending on the insurer you use, however as a rough guide, it is 30% for the first year, and an additional 10% for each year thereafter.

It stands to reason that there has to be a limit on this as after 8 years you would have a no claims discount of 100% i.e. free insurance. (nice idea!)

Most insurance companies cap the discount at between 60% and 70% although I have seen some advertise they give 75%

Again there can be variations but after about 6 years, you are on maximum no claims discount, and whether you have 6 years or 60 years the discount will not change.

I am amazed therefore that producing a no claims discount showing 9 years instead of 11 years made £150 extra on your insurance.
I always stand to be corrected, but I think you will find the extra charge had nothing to do with that 2 year difference, and it was down to just the way the new insurance company calculated your price.

I would be glad to help further if you need any.

 

[IanD]

I am amazed therefore that producing a no claims discount showing 9 years instead of 11 years made £150 extra on your insurance.
I always stand to be corrected, but I think you will find the extra charge had nothing to do with that 2 year difference, and it was down to just the way the new insurance company calculated your price.

I had a quote from Elephant for £629 as I said I had 13 years no-claims but when the renewal came through from Hastings it only showed 9. I checked with Elephant and their quote went up to £734 so a £105 difference (£150 was a typo). Still a bit cheaper than all the other quotes for me + two under 21s but it still would have been £105 more than it should have been thanks to Hastings. (Hastings were quoting £1600 - that's WITH full no-claims discount - as they obviously didn't want the business or thought I'd be too stupid/lazy to shop around).

We're always told that they can check the "insurers database" records to see if the information we have provided is correct but they won't check it for proof of no-claims. It's up to us to provide the evidence which is impossibile if we are given incorrect documentation.

 

[snail]

Last year at my insurance renewal, I'd built up 12 years no-claims discount

Did they tell you what the percentage discount is each year? You are claiming they reduced your premium by about £25 for years 9 to 13, did this actually happen prior to moving to the other company?

I'm with condor7 on this, anything over 6 years is fluff.

As for swj99's comments I hope you never have a claim! I changed my attitude to insurance companies when they paid out £30K to a third party following an accident I had. At the premium I was paying it would take me over 100 years to pay it back!

 

[melena]

Thanks for the heads up. I normally throw all the old documentation away from previous insurers after a couple months on a new policy just incase theres a problem. I've also gone with Hastings this year with 11 years NCD, so will keep the renewal notice from my last insurer.

 

[snail]

Thinking about this, if Hastings really are so generous with NCD there would be good cause for a complaint if they failed to uphold your claim of more years than the documented figure from a previous insurer, given that many stop at 5, 6 or 9 years.

 

[IanD]

Thinking about this, if Hastings really are so generous with NCD there would be good cause for a complaint if they failed to uphold your claim of more years than the documented figure from a previous insurer, given that many stop at 5, 6 or 9 years.

It's Hastings who have capped my no-claims at 9 years despite me going to them with 12 years. I believe Elephant have a more granular policy giving discounts for up to 15 years.

I don't expect to get my insurance for free but I do expect to be able to get the discount I am entitled to regardless of which company I use each time. It's fine for Hastings to not give any extra discount over 9 years but they should not then claim that their customers have only 9 years of claim free motoring because of this.

 

[snail]

It's fine for Hastings to not give any extra discount over 9 years but they should not then claim that their customers have only 9 years of claim free motoring because of this.

It's not Hastings that are out of line. They are correctly stating your no claims discount. When you applied to them you will have told them you had '9 years or more' NCD because that's the question they asked.

You should be insisting that Elephant believe you when you say it's more than 9 years and making a formal complaint to them if they don't.

 

[IanD]

It's not Hastings that are out of line. They are correctly stating your no claims discount. When you applied to them you will have told them you had '9 years or more' NCD because that's the question they asked.

You should be insisting that Elephant believe you when you say it's more than 9 years and making a formal complaint to them if they don't.

When I applied to Hasting, I told them 12 years and I forwarded them my confirmation from Admiral. I signed up over the phone so was quite clear that I had 12 years. I shouldn't be penalised because their system cannot cope with holding accurate information.

Elephant will accept that I now have 13 years but I have to forward two proofs of no claims as the one from Hastings does not say "9 years or more", it simply says "9 years". However, Elephant should be able to verify my no-claims status by reference to the oft referred to "insurers database".

 

[snail]

Elephant should be able to verify my no-claims status by reference to the oft referred to "insurers database".

No they won't. If you are referring to the "Claims and Underwriting Exchange", that holds details of motor claims to prevent fraud. The other central database is the Motor Insurance Database, this holds information for the police to verify that cars are insured.

AFAIK there is no central register of no claims discount, that's why companies ask for letters from your previous insurer. Elephant are just being awkward, they know no one else is as 'generous' as them in terms of the number of years NCD ('generous' in quotes because companies like LV and Direct Line will give you 70%-75% NCD after five years).