Unusual insurance question | Motoring discussion | Back Room Forum

Wed 15 Sep 2004 11:15

Unusual insurance question - don9999

I need some advice about taking out insurance.

Both my wife and I have (had?) full no claims (6+ years) insurance on our individual cars (mine was a Peugeot 406, hers was a Focus). Both of us were named on each insurance, since we drive the cars interchangeably.

A few months ago, we sold the Peugeot, and obtained a new vehicle (Renault Scenic) under the motability scheme (my daughter is disabled), which also includes free insurance for the three years duration. Although my wife is the main driver, we are both named for insurance purposes.

To complicate matters further, my wife also bumped the new car on a high curb, requiring the insurers to pay for some body work.

Now....the insurance on the Focus is due for renewal!

How do we get it insured? If we insure again under my wife's name, do we have to mention the claim on the (free) insurance incident? Will it affect our premiums?

And will I lose my maximum NCD if I don't take out any new insurance in the next three years?

OR.....should I renew the Focus insurance in MY name, to retain my max NCD? And would my wife then lose HER maximum NCD?

Or in fact has her max NCD now be in jeopardy since she had an insurance claim, albeit on a DIFFERENT policy/car?

I really don't know what to do for the best, and would be extremely grateful for some advice. I guess the key questions are:

* Does someone lose their maximum NCD if they do not take out insurance for 3 years (although having free insurance provided on a different car for that period).
* Is a maximum NCD affected on one insurance policy, if a claim is made on a 'different' insurance policy and vehicle (especially since the policy/car were provided free on the motability scheme).

Cheers,
Don

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Wed 15 Sep 2004 11:29

Unusual insurance question - Mark (RLBS)

How do we get it insured?

Under either name, as you wish.

If we insure again under my wife's name, do we have to mention the claim

Youhave to mention the claim on any insurance that covers your wife to drive, irrespective of whether or not that policy is in her own name.

Will it affect our premiums?

Theoretically yes. Although that would be unlikely and it would not be difficult to find another insurer who did not take action.

And will I lose my maximum NCD if I don't take out any new insurance in the next three years?

It always used to be two years, although it may now be three - it may also differe between insurers. Whichever, you would certainly lose your bonus if you did not take a policy out in that period.

OR.....should I renew the Focus insurance in MY name, to retain my max NCD?

I certainly would.

And would my wife then lose HER maximum NCD?

She would, but I would probably recommend that next year you took out the insurance in her name.

Or in fact has her max NCD now be in jeopardy since she had an insurance claim, albeit on a DIFFERENT policy/car?

It may be. Who's name is that insurance in ? Even free they would have wanted some details. Did they not ask for proof of NCD ? I'll be able to answer this more completely if you can give more details.

* Does someone lose their maximum NCD if they do not

take out insurance for 3 years

Yes, as above.

* Is a maximum NCD affected on one insurance policy, if

a claim is made on a 'different' insurance policy and vehicle

(especially since the policy/car were provided free on the motability scheme).

Could be yes or no. I need more details.

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Wed 15 Sep 2004 11:34

Unusual insurance question - daveyjp

Doesn't seem too complicated. Wife now has a Scenic - she can apply her NCB to this car with you as a named driver. You take responsibility for insuring the Focus using your NCB with your wife as a named driver - you need to mention your wife's claim when reinsuring the Focus. Her Scenic insurance premium and NCB situation may be affected by the accident when the free insurance runs out.

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Wed 15 Sep 2004 11:47

Unusual insurance question - don9999

Thanks for the replies so far :-)

To clarify, the Renault Scenic has been provided to us under the Motability scheme. My wife is the main driver and so, she is named as the owner (and hence main driver on the insurance policy). However, 'I' am also insured on the policy.

The motability insurers did not take on my wife's (or mine) NCD, since they provide the insurance whatever our status - providing the insurance is automatically part of the motability deal.

(For those who aren't aware of the deal, the scheme provides a choice of cars, full insurance, tax and maintenance, in exchange for the disability benefit. Hence, rather than receiving the benefit for my disabled daughter - several hundred pounds - we are provided with a fully maintained and insured car for three years.)

I'd already thought of taking out the insurance on the Focus in MY name at next renewal, then under my wife's the following year, then mine after that. Thereafter we would probably be giving back the Scenic, buying another car, and then BOTH need to take out insurance. This way, I 'think' (confirmed in a reply) that we could both retain our NCD (assuming insurer's ignore the claim on the other insurance policy).

Does this make sense?

Cheers,
Don

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Wed 15 Sep 2004 12:41

Unusual insurance question - DavidHM

Sorry if I've missed this, but is one of you the main driver of the Focus, or do you share it equally? Of course fronting isn't likely to be a practical issue if you are of a similar age - and obviously you both have a good insurance history, but theoretically the insurer should know exactly the risk it is taking on.

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Wed 15 Sep 2004 13:34

Unusual insurance question - don9999

The insurance is in my wife's name (as is the Focus car itself), but I am a named driver, and we drive equally (me slightly more if anything).

What is 'fronting'?

We ARE of a similar age, me 37 her 34 We have both driven since ages of 17, full no claims, only incident being the recent meeting with a big curb and consequent claim.

Cheers,
Don

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Wed 15 Sep 2004 14:32

Unusual insurance question - Mark (RLBS)

Firstly, alternating the insurance policies between your name and your wife's over the next few years would eb a good idea. Its quite above board and provided you are not mis-representing who is the main user, I cannot see any difficulty. And referring to David's point, insurers typically take a very liberal view between husband and wife anyway.

Insofar as your wife's NCD is concerned, then its not so straight forward;

On the one hand, you could return to her previous insurer, obtain proof of max NCD and in practice use that with little issue. If your wife had two policies at the same time - her "own" and the motability one then the NCD would only be reduced on one of those policies.

Theoretically that should hold true, but the complication is that she does not hold her own policy and it could be argued that it had been taken into account in the Motability policy and therefore should be reduced. That "taken into account" does not neccessarily mean that someone used it as NCD, it could have been taken into account either specifically in rating your risk or in general as part of rating the portfolio.

If it was me, I would take out a policy in my wife's name while the motability policy was still in force. The argument being that any rating adjustment had been incorporated into the Motability policy (and conceptually it has been, irrespective of any re-rating or not) and therefore need not be taken into account in another policy.

However, its moving into a level of pedentry that most insurance people are not going to answer with intelligence and could actually jump either way.

I've sent you an e-mail.

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