Dear all,
I've just bought a different car, and have run into a little problem in insuring it. My current policy has 3 months to run, but the underwriter will not insure the new car - something to do with them only doing diesels or Rovers or something, rather than my driving record.
I can get insurance on the new car easily enough, but is there a way of not losing the 9 months no-claims that I have built up? If I do lose it, it puts me back to 3 years no claims, which I think means another 15% on the insurance. I have tried asking nicely!
Thanks,
O
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Hi,
1) You are stuffed on the bonus.
2) You should be entitled to a pro-rata refund (less broker fees if applicable). Do not accept anything less.
3) Have you tried taking your problem further up the co and trying to appeal to their better nature to see if they will help.
4) Finally, the difference between 3 and 4 years ncb is only 10% and rates have fallen slightly in the last few months. Therefore, this may be a blessing in disguise. Go into the market and try Tesco, Virgin, Direct Line etc.
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Retro is spot on, although I'd argue the broker's fees as well.
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Thanks. The broker cancellation fee is £35, and the total refund I'd be entitled to is about £7. There are various short-term rates listed clearly in the T&C about cancelling before the end, regrettably.
It looks like I can get classic insurance, and the company I've got a quote from haven't asked about NCD at all - will I continue to build it up for when I get the next (modern) car?
Thanks,
O
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>>There are various short-term rates listed clearly in the T&C about cancelling before the end, regrettably
There is a huge difference between cancellation and the underwriters declining the risk.
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'There is a huge difference between cancellation and the underwriters declining the risk.'
But surely they are only declining the risk because Orson wants to move the goal posts in the middle of the contract. If they don't want the risk of his new vehicle he will have to cancel.
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The general rule is that if the present company cannot help then they help the client as much as possible.
I see where Mark is coming from re the broker fee. It depends on how strongly you feel....if £28 is very important to you mention complaining to the FSA. This may "help" the broker be more flexible. I personally think carrying through the implied threat would be a bit rough on the broker though.
Finally, for £7 I would just let the policy expire and not cancel as you may need the bonus in future.
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Certainly, they said that it would be as good just to let it run out, even though I don't have a car with them. To be honest, it's not worth the hassle with threatening the FSA - the T&C were clear and I accepted them. I'm not sure I'd go back though, even though they were cheap. My main concern was losing a year of NCB, especially as I lost 2 years worth in 2003 for a 50/50 shunt that I was not very pleased about (see threads passim). But, it's only money, I guess - at least we're not dead.
Presumably there's no problem for me if someone else buys the car and crashes it, as long as I've sorted out the logbook properly?
O
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Good question! I definately would let it run out and get the extra bonus, whether it is completely correct to do so is another matter!
Whats your thoughts Mark?
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FOr £7 let it run. Make sure you keep records of that insurance and NCD level and bear in mind that its only usually valid for 2 years.
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You have also highlighted the benefits these days of avoiding brokers and going direct.
I've never been able to believe that a broker will find the best possible deal for any customer as a commission is involved...:-)
That assumption has been proved correct on a number of occasions when I've given my details to the brokers who advertise so heavily on TV and in the newspapers. In every case the premium requested has been at least 50 per cent and usually a lot more than dealing with Churchill, DirectLine etc.
Moreover the broker's cancellation fee seems to indicate that that commission is not going to be "lost" come what may.
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What\'s for you won\'t pass you by
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In fairness (and as an ex-broker), nost of them try their best.
However, I think their job can be likened to trying to push water uphill. I think their time has been and gone due to advancements in technology and how this benefits economies of scale. In other words, I cannot see how they can compete nowadays.
Sadly, I also hover over insurance forums and the way brokers think is tragically very old fashioned. However well intentioned, if I was them I would sell up and do something else.
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I cannot understand how letting the policy run out gives an extra years bonus to use.
Orson currently has 3 years NCB. He takes out insurance on his new car with 3 years NCB and next year he will have 4 years NCB - assuming no claims of course.
So he lets his policy run out and he has got a further years NCB. Assuming that he doesn't want to insure a second car, what good is that extra years NCB? - how does he use it?
Or have I missed something?
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You've missed something.
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With the original insurer declining to cover a replacement vehicle does this then become a problem with the usual question when applying for a policy "Have you ever been turned down for insurance".
Martin
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I would mention what has happened, but it will never be a problem.
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I just used the Never word didn't I......To clarify: If you are dealing with someone who has half a brain, it will "never" be a problem.
Therefore, with the kind of people insurers sometimes employ good luck!
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With the original insurer declining to cover a replacement vehicle does this then become a problem with the usual question when applying for a policy "Have you ever been turned down for insurance". Martin
I'm not sure this is the same thing, is it?
This is 'declined to provide a quote for a wehicle', as a pose to refused insurance?
I'm not really sure here, I'd just always interpreted the question as referring to them taking your ability to be insured at all away, due to some nefarious deed or other.
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You've missed something.
I don't think he has. Cardew makes a relevant point.
He currently has 3 years NCD, but will have 4 in 3 months, so leave the insurance running and in 3 months he can get a certificate saying he has 4 years. This is what you're suggesting.
However, in the mean time, he's started a new insurance policy, with 3 years NCD, with another company.
So, in 3 months time, he's got nothing left to insure. 9 months following that he'll want to re-insure his vehicle, but by that time, you'll have a 4 years certificate from his new insurer, so where's the value in the old certificate? Unles he gets a second car, but that's a bit dodgy too, as at some point he's used the same NCD for two cars.
For that matter, will his old insurer be willing to supply him with a proof of 3 years at the same time as continuing his insurance for 3 months? Surely they'll only give you a certificate when you stop insuring with them?
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You've missed something.
Thanks for your informative reply!
Pray tell me what I have missed.
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He is getting Classic Car insurance and as he states, no-claims bonus is not required.
Therefore, in 3 months time he will get his NCB and can put it in a drawer until it is needed. It will keep for 2yrs possibly 3 if he uses NU.
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Re disclosing being refused insurance:
1) As I have previously stated, it is best to be scrupulously honest with insurers. If the question is "have you ever been refused insurance", you have to answer yes. I do accept that there is a good reason for it and I do accept it should make no difference. However, to use a previous example if you run over a bus queue, you do not want to being arguing the toss with someone who stands to lose loads of money.
2) Being honest will probably mean that getting a quote via the internet will be a problem as the site will more than likely refer you to a human.
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Thank you, RR! I guess the moral of the story is only buy a different car at renewal time! I assume that there's no problem for me if someone subsequently buys the old car and runs over a bus queue? The "being driven with owner's consent" bit would then come into play.
Does anyone want my former car, by the way? Details in classifieds!
O
Jaguar XJS V12 - comes with free personalised oil tanker.
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He is getting Classic Car insurance and as he states, no-claims bonus is not required.
Without getting into a semantic argument what he stated was:
"I can get insurance on the new car easily enough,"
"It looks like I can get classic insurance, and the company I've got a quote from haven't asked about NCD at all - will I continue to build it up for when I get the next (modern) car?"
From that, you have attributed statements from him that he is definitely taking out a classic car insurance policy and that this company does not require NCB.
Assuming his question on building it up refers to the new company, the answer to his question is ?? - presumably no.
A case of three and fourpence methinks!
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generally to qualify for a classic car policy you have to have another car. The Classic policy assumes the NCD is being used on the other car as your daily driver.
So it's a fair assumption to make that any company that issues a a classic car policy will not be interested in NCD.
JaB
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The other insurance company (Lancaster) have not asked about NCD, and I've said that I have the occasional use of Mrs O's car (which I do) but that she doesn't live with me (which she doesn't). The Lancaster policy is for SDP and commuting with a 15k milage limit. The car is a 1988 E plate.
O
Jaguar XJS V12 - comes with free personalised oil tanker.
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"I cannot understand how letting the policy run out gives an extra years bonus to use.
Orson currently has 3 years NCB. He takes out insurance on his new car with 3 years NCB and next year he will have 4 years NCB - assuming no claims of course.
So he lets his policy run out and he has got a further years NCB. Assuming that he doesn't want to insure a second car, what good is that extra years NCB? - how does he use it?
Or have I missed something?"
Your query is as per above.
1) By doing what I suggest, he has an extra years ncb if he should need it in the next few years.
2) Your second paragraph incorrectly states that he will be using the 3 yrs ncb. This is where we part company, as he will not be using any bonus.
3) I do accept that he did not catagorically state that he was getting a classic car policy, but this was the inference!
4) Are you related to my wife and/or a barrister!!! :)
Love
The good samaritan
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4) Are you related to my wife and/or a barrister!!! :)
I refuse to answer on the grounds I might incriminate myself!
LOL
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I had this problem with my van insurance.
My new van was under 2 years old. My broker told me there was no refund. Mark(RLBS) disagreed. So I contacted the underwriters (Premiere Underwiting) direct who offered their assistance should I need it. They agreed that a pro rata refund would be the norm, and indeed required from them. There is a stipulation that if you can't coninue to use the policy through no fault of your own, ie if your new car is not within the scope of the policy, then it's an insurance restriction - hence they need to cough up for it - not you.
I then went back to the broker who first said OK but there would be an admin fee. I then wrote a letter enclosing the policy, copied it to the underwriters insisting that I received a full pro rata refund with no deductions whatsoever.
I did.
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