Maximum No Claims Discount?

[Big Tav]

Hi guys. In Australia I have a ratings 1 no claims discount which is equal to 70% I have held this for just over 10 years.

What is the maximum rating in the UK? One site said it was a rating 1 held for 5 years is the max. Is that correct?

Cheers.

[Greenwich Ross]

As far as I can tell insurance companies here only give a toss about the last 5. However, i'm not sure how it's reduced if you do claim (e.g. if you have 10 years and have a minor bump, do they remove the lot or reduce it to 6, for instance).

Edited by Greenwich Ross on Tuesday 11th January 14:15

[kambites]

There's no hard rules on it, but in practice it's 5 years with most insurers.

[tezzer]

Wife's came hrough yesterday, showing 77.78% for 10 years !

[HD Adam]

Basically, it's all made up as they go along so they can screw you over if possible.

When I recently insured my Audi barge, I was told that I couldn't have any No Claims on that policy as I already used it on one of my other cars even though I had not made any claims.

[kambites]

HD Adam said:

When I recently insured my Audi barge, I was told that I couldn't have any No Claims on that policy as I already used it on one of my other cars even though I had not made any claims.

So why didn't you go to a different company?

[Ozzie Osmond]

HD Adam said:

Basically, it's all made up as they go along so they can screw you over if possible.

When I recently insured my Audi barge, I was told that I couldn't have any No Claims on that policy as I already used it on one of my other cars even though I had not made any claims.

Sounds as though you just don't understand the very simple system.

[Big Tav]

Can you explain it for me please? I'm from Australia so it's all new to me. Cheers.

[redstu]

Saw an ad on tv which said that axa do up to 90%. I'd imagine that few people would qualify though.

[cuprabob]

NCD is a con. It doesn't matter whether it's 50% or 90% it's the end cost of the premium that matters.

The majority of insurers max out their NCD after 5 years therefore anymore than that doesn't matter. If you have a claim and you are on 5yrs or 20yrs NCD it still goes back to 3yrs.

[Loteuk]

So........if an insurance company can apply say, the 90% NCD at renewal this year - should the no claims discount be allowed/applied the following year (at 90%) if a different insurance company is used? (this raises the question that NCD is not regulated and used as an advertising/incentive ploy to make the deal look better than it is).

[Doofus]

Loteuk said:

(this raises the question that NCD is not regulated and used as an advertising/incentive ploy to make the deal look better than it is)

Of course it's not regulated. NCB/NCD doesn't exist. It's a marketing tool used by insurance companies.

I don't understand why so many people seem to think they're 'entitled' to it, and their insurance company should 'honour' it. It's not a right, it's not enshrined in law, and it's entirely at the discretion of an insurer whether or not to tell you they're applied it to your premium, and how much pretend discount they've given you as a result.

[cuprabob]

Loteuk said:

So........if an insurance company can apply say, the 90% NCD at renewal this year - should the no claims discount be allowed/applied the following year (at 90%) if a different insurance company is used? (this raises the question that NCD is not regulated and used as an advertising/incentive ploy to make the deal look better than it is).

Your 90% is not tranferred from 1 company to another at renewal time as each company has different rules. What is transferred is the number of years NCD.

A company that offers 90% NCD has put up the base price to compensate which is why I say end premium is all that matters not whether you get 50% or 90% NCD

Insurance is all about marketing, it's one of the few industries that "customer loyalty" is penalised. New customers always get the best deals.

Edited by cuprabob on Tuesday 11th January 19:04

[cuprabob]

I should have added all insurance companies are charlatans :-)

[Big Tav]

I know what you are saying about the end amount is all that matters. A 95% discount doesn't matter if the premium is outrageous to start with. I just don't want to make a mistake and lose some UK entitlements by signing up with the wrong company that wont recognise my years already served

[farrendahl]

cuprabob said:

I should have added all insurance companies are charlatans :-)

+1 on this, as a former employee of Churchill (or as I like to call them part of the unholy axis of evil) unless you met what was a ridiculous ideal customer criteria (When I was there it was 40 year old male in a base spec 1.6 Rover 400 living in the home counties) it didn't make a blind bit of difference if you had 5 years NCD or none.