Ending my Motor Trade Insurance - Can I 'pause' the NCD?

[hal3210]

I've always held a motor trade insurance policy, ever since I started driving 20 years ago. However, I've decided to come out of car sales. I've also been a named driver on my parents' car for the past 10 years. I've never made any claims since I started driving.

If I end my motor trade insurance, am I right in thinking I will lose my 20 years No Claims Discount or would it be possible to effectively 'pause' that trade policy and use the NCD I've built up in the future on a new motor trade policy or a private car policy (should I find an insurer that's happy to accept a motor trade NCD on a private policy).

I don't currently need my own car in the foreseeable future so as I'm continuing to use my parents' car as a named driver on an ongoing basis, am I best to use the named driver NCD I've built up on this policy over the last 10 years if I wish to start a new insurance policy on my own car in the future? I understand that some insurers accept NCD as a named driver and this named driver cover will be ongoing right up until I intend to get my own car again in the future.

It's pretty unlikely I'll ever go back into the motor trade but I've heard stories that once you end your trade insurance, it can be difficult to obtain a new motor trade policy (even if you've held one for a long time before if there's a break in the cover) but that's something to consider in the unlikely event I go back into car sales in the future.

Greatly appreciate any feedback/advice on which NCD will be applicable once I get my own car again. TIA.

[CraigyMc]

hal3210 said:

I've always held a motor trade insurance policy, ever since I started driving 20 years ago. However, I've decided to come out of car sales. I've also been a named driver on my parents' car for the past 10 years. I've never made any claims since I started driving.

If I end my motor trade insurance, am I right in thinking I will lose my 20 years No Claims Discount or would it be possible to effectively 'pause' that trade policy and use the NCD I've built up in the future on a new motor trade policy or a private car policy (should I find an insurer that's happy to accept a motor trade NCD on a private policy).

I don't currently need my own car in the foreseeable future so as I'm continuing to use my parents' car as a named driver on an ongoing basis, am I best to use the named driver NCD I've built up on this policy over the last 10 years if I wish to start a new insurance policy on my own car in the future? I understand that some insurers accept NCD as a named driver and this named driver cover will be ongoing right up until I intend to get my own car again in the future.

It's pretty unlikely I'll ever go back into the motor trade but I've heard stories that once you end your trade insurance, it can be difficult to obtain a new motor trade policy (even if you've held one for a long time before if there's a break in the cover) but that's something to consider in the unlikely event I go back into car sales in the future.

Greatly appreciate any feedback/advice on which NCD will be applicable once I get my own car again. TIA.

NCD is usually fine up to 2 years after the end of the last policy.

[hal3210]

Many thanks for confirming the NCD still applies within 2 years of the motor trade policy ending.

Should I not start another policy within 2 years though, am I right in thinking that some insurers will accept NCD from being a named driver?

[POIDH]

Your issue may be transferring NCD between a trade and a personal policy.

[hal3210]

Yes, it maybe better if I eventually transfer my named driver private policy NCD to a new private policy, but similarly to the motor trade policy, I think only some insurers accept NCD on a named driver basis.

[Sebring440]

POIDH said:

Your issue may be transferring NCD between a trade and a personal policy.

Why is that?

[LastPoster]

hal3210 said:

Many thanks for confirming the NCD still applies within 2 years of the motor trade policy ending.

Should I not start another policy within 2 years though, am I right in thinking that some insurers will accept NCD from being a named driver?

I was able to do this with Direct Line. My wife had been driving on a policy in my name but with her nominated as main driver for years. DL mirrored my NCD for her to start a policy in her name.

[hal3210]

Sebring440 said:

Why is that?

I'm pretty sure that when I started my motor trade policy 20 years ago, it wasn't possible to transfer a motor trade NCD to a private car policy NCD - I always knew I was making a bit of a rod for my own back with a motor trade policy, as if I ever gave up and wanted a private policy I may have to start off without a NCD.

This is probably still the case with many insurers but thankfully some companies seem to accept a motor trade NCD on a new private policy.

[hal3210]

LastPoster said:

I was able to do this with Direct Line. My wife had been driving on a policy in my name but with her nominated as main driver for years. DL mirrored my NCD for her to start a policy in her name.

That's good to hear, I had a look at a few comparison sites and some insurers allowed NCD as a named driver. I'll check out Direct Line when I eventually get my own car to insure. I have heard of cases where a spouse has been a named driver for many years and if the partner dies, their spouse's NCD as a named driver is passed over to the survivor.

I may not be getting my own car again within the next 2 years so unfortunately I'll probably lose the 20 year NCD I built up on the motor trade policy but my NCD as a named driver will be ongoing until I get my own car so I should be able to use the named driver NCD.

I'm pretty sure when I started driving, NCD as a named driver didn't count for anything on a new policy so I'm glad things have changed since then.

[Bluevanman]

Sebring440 said:

Why is that?

I came out of the motor trade 2 years ago,no private insurance company I contacted would accept trade insurance NCB....but it didn't matter because they all give a generous discount as a new customer and my premium was as cheap as chips

[hal3210]

Bluevanman said:

I came out of the motor trade 2 years ago,no private insurance company I contacted would accept trade insurance NCB....but it didn't matter because they all give a generous discount as a new customer and my premium was as cheap as chips

Thanks for that, that's really good news I'm pretty sure in the old days no private insurer would accept a motor trade NCB but apparently some do now, but I haven't checked it out myself as I also have a policy where I'm a named driver which I intend to keep going.

I know I make life potentially difficult as the only NCB as I have is either on a motor trade policy which I'm ending and a private policy where I'm only a named driver!! But if all else fails, a big discount as a new customer sounds good! I'll also be quite old by the time I get my own private policy so I'm hoping this will help too!

[buyerandseller]

I gave up my traders policy a few years ago now and encountered an issue transferring my NCD, I popped into my local Howdens brokers, which I think was Swintons back then, the knowledgeable manager there made a quick call to an insurer and sorted me out with seven years no claims, it was quite expensive but gave me the opportunity to shop around come renewal so it can be done or it could.

[hal3210]

buyerandseller said:

I gave up my traders policy a few years ago now and encountered an issue transferring my NCD, I popped into my local Howdens brokers, which I think was Swintons back then, the knowledgeable manager there made a quick call to an insurer and sorted me out with seven years no claims, it was quite expensive but gave me the opportunity to shop around come renewal so it can be done or it could.

Many thanks, was there a gap between your trade insurance ending and you starting the new private policy? It maybe a while before I start a new policy so my trade NCD may have expired by then but I'll definitely try my best to get either my trade NCD or my ongoing named driver NCD applied when I get a new policy.

That makes sense about paying more initially to get the NCD so after a year you can use all the comparison sites.

A few years ago a friend said that insurers can easily check previous accidents these days so that some can almost provide an NCD on that basis but I'm doubtful that's true!

[Old Merc]

Bluevanman said:

Sebring440 said:

Why is that?

I came out of the motor trade 2 years ago,no private insurance company I contacted would accept trade insurance NCB....but it didn't matter because they all give a generous discount as a new customer and my premium was as cheap as chips

Same with me when I retired and closed my garage business.

[buyerandseller]

hal3210 said:

Many thanks, was there a gap between your trade insurance ending and you starting the new private policy? It maybe a while before I start a new policy so my trade NCD may have expired by then but I'll definitely try my best to get either my trade NCD or my ongoing named driver NCD applied when I get a new policy.

That makes sense about paying more initially to get the NCD so after a year you can use all the comparison sites.

A few years ago a friend said that insurers can easily check previous accidents these days so that some can almost provide an NCD on that basis but I'm doubtful that's true!

No, no gap as I needed continual insurance.

I'll have a look to see if I can find the paperwork, it's a 3/4 years ago now so might have been committed to the bin.