How does NCD work.
Discussion
Can somebody explain how no claims discount works?
My understanding is that you accumulate as the years go by and if you make a claim it resets to zero.
A few posts I have read on here recently suggest that if you have 4 years no claims then make a claim you drop to 3.
The reason I ask is I had 7 years, I know some insurers don't recognise more than 5 but they mine accepted 7 when I told them, then I made a claim for a fault accident. On my renewal to a different insurer I advised them I had zero as I had just made a claim. Is this correct?
My understanding is that you accumulate as the years go by and if you make a claim it resets to zero.
A few posts I have read on here recently suggest that if you have 4 years no claims then make a claim you drop to 3.
The reason I ask is I had 7 years, I know some insurers don't recognise more than 5 but they mine accepted 7 when I told them, then I made a claim for a fault accident. On my renewal to a different insurer I advised them I had zero as I had just made a claim. Is this correct?
DaveH23 said:
Can somebody explain how no claims discount works?
My understanding is that you accumulate as the years go by and if you make a claim it resets to zero.
A few posts I have read on here recently suggest that if you have 4 years no claims then make a claim you drop to 3.
The reason I ask is I had 7 years, I know some insurers don't recognise more than 5 but they mine accepted 7 when I told them, then I made a claim for a fault accident. On my renewal to a different insurer I advised them I had zero as I had just made a claim. Is this correct?
Typically an accident knocks two years off your no claims bonus.My understanding is that you accumulate as the years go by and if you make a claim it resets to zero.
A few posts I have read on here recently suggest that if you have 4 years no claims then make a claim you drop to 3.
The reason I ask is I had 7 years, I know some insurers don't recognise more than 5 but they mine accepted 7 when I told them, then I made a claim for a fault accident. On my renewal to a different insurer I advised them I had zero as I had just made a claim. Is this correct?
If your NCB is protected, then you can have an accident without it impacting your NCB.
But that doesnt mean your insurance company cant weight your insurance because of the accident, as they may deem you a higher risk.
daemon said:
Typically an accident knocks two years off your no claims bonus.
Also NCB doesnt mean your insurance company cant weight your insurance because of the accident, as they may deem you a higher risk.
So rather than taking the policy out online I should of explained the situation better over the phone and possibly could of kept some? They were not protected either.Also NCB doesnt mean your insurance company cant weight your insurance because of the accident, as they may deem you a higher risk.
I would just tell them everything as it is. I prefer dealing over the phone as it less likely something is left to chance. I know some cut off NCD at 5 years. I have about 10 but some only let you have 7 years max either way so long as you are getting the maximum discount it should not matter.
As above, when unprotected it's typically 2 years per unrecovered claim that is lost. Do you have a renewal letter/proposal from the last insurer? It will have your current NCD entitlement stated on it as part of the offer they're making for the renewed policy. If not, ask the old insurer for proof of no claims.
You'll have to ring your new insurer and tell them you made a mistake and would like to supply proof of (likely 5 years) NCD and have your premium reduced accordingly. It'll be a substantial discount. If they don't offer much discount, then consider cancelling the policy and taking out a new one elsewhere with the NCD stated correctly.
You'll have to ring your new insurer and tell them you made a mistake and would like to supply proof of (likely 5 years) NCD and have your premium reduced accordingly. It'll be a substantial discount. If they don't offer much discount, then consider cancelling the policy and taking out a new one elsewhere with the NCD stated correctly.
Just to add, a claim against a 3rd party should not affect your NCD either (protected or not).
I was hit a year ago and the 3rd party accepted full responsibility - this did not affect my NCD.
Of course, different insurers will still have different ratings, some will penalise you for having made a claim against the 3rd party while others won't.
I was hit a year ago and the 3rd party accepted full responsibility - this did not affect my NCD.
Of course, different insurers will still have different ratings, some will penalise you for having made a claim against the 3rd party while others won't.
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