Insurance NCB question....
Discussion
Evening All,
I'm about 1 month away from end of my current insurance term and another NCB which I don't want to loose.
However, I'm about to sell my car and it may take a while to source a replacement. Unfortunately I'm not in a position to buy a new one without the proceeds of the current car sale. I hope to resolve that situation sooner rather than later, obviously.
Legally I should inform my insurer that the car is no longer in my ownership once it's sold, to not do so will cause issues when the car gets insured elsewhere and if in the worst case the new owner had to make a claim etc.
If I don't swap the current policy to another car, does that automatically cancel the policy or can I let it run and still get my NCB, assuming I don't find a replacement before it expires?
Didn't really think about any of this when I put it up for sale, hmm.
Thanks in advance,
I'm about 1 month away from end of my current insurance term and another NCB which I don't want to loose.
However, I'm about to sell my car and it may take a while to source a replacement. Unfortunately I'm not in a position to buy a new one without the proceeds of the current car sale. I hope to resolve that situation sooner rather than later, obviously.
Legally I should inform my insurer that the car is no longer in my ownership once it's sold, to not do so will cause issues when the car gets insured elsewhere and if in the worst case the new owner had to make a claim etc.
If I don't swap the current policy to another car, does that automatically cancel the policy or can I let it run and still get my NCB, assuming I don't find a replacement before it expires?
Didn't really think about any of this when I put it up for sale, hmm.
Thanks in advance,
Once the car is sold, and not replaced, there’s no longer any car to insure and no Insurable Interest, therefore.
The Policy must lapse.
You are contractually obliged to inform your Insurer of the sale, and lapse the Policy.
There’s zero benefit in not doing so and significant potential downside if you don’t inform your Insurer.
The NCB will be accepted by the majority of Insurers for up to two years post-lapse of the Policy and without another Policy being arranged in the meantime.
You can ask your Insurer at a later date for proof your NCB level, and it’s very likely already noted on your most recent renewal documents.
The Policy must lapse.
You are contractually obliged to inform your Insurer of the sale, and lapse the Policy.
There’s zero benefit in not doing so and significant potential downside if you don’t inform your Insurer.
The NCB will be accepted by the majority of Insurers for up to two years post-lapse of the Policy and without another Policy being arranged in the meantime.
You can ask your Insurer at a later date for proof your NCB level, and it’s very likely already noted on your most recent renewal documents.
Thanks for responses.
This would be my 4th NCB, so it's still at a point that it makes a big difference to future premiums. Be very annoying to loose the benefit of this year ending the policy a month away from the end....
But sounds like no choice.
I guess if I get the policy with same insurer they'll probably recognise it for the year.
This would be my 4th NCB, so it's still at a point that it makes a big difference to future premiums. Be very annoying to loose the benefit of this year ending the policy a month away from the end....
But sounds like no choice.
I guess if I get the policy with same insurer they'll probably recognise it for the year.
PH.sausages said:
Sorry, poor searching skills on my part. My neighbours are away at the moment, have been for several years. Their car is in their drive growing weeds.....Hmmm.
I was 10 years without a car as I worked within walking distance and the gf had a car. At the end of the last policy I had (6yrs NCB accrued) I asked for the ins co to send me a letter of proof by mail. When I got some wheels again I was fearing the dreaded "NCB expires after 2 years" story, but out of the 5 or 6 ins cos I contacted for a quote and spoke to on the phone or via the live chat all said they'd accept the 6 yrs NCB upon receipt of the letter for proof.
I think the 2yrs thing is a bit of an urban myth based on my own experience. My advice would be to not worry about it, but ensure you get proof of your accrued NCB years in writing/hard copy to avoid potential "can't find your records" excuses when you contact your old insurer for proof some years down the line.
I think the 2yrs thing is a bit of an urban myth based on my own experience. My advice would be to not worry about it, but ensure you get proof of your accrued NCB years in writing/hard copy to avoid potential "can't find your records" excuses when you contact your old insurer for proof some years down the line.
OP, since no one has actually addressed your original issue, whilst you have to notify the insurance company that you have sold the vehicle you may get lucky and they may be able to transfer your policy onto a dummy registration for the last month...this will allow you to accrue the year's no claims.
r3g said:
I think the 2yrs thing is a bit of an urban myth based on my own experience.
Whilst not disputing your personal experience, the two-year validity period is not an urban myth, it’s a generally accepted practice within the industry (but not a hard & fast rule).There has to be some sort of expiry point.
NCB is supposed to evidence good driving, or at least driving without claims (which is a perhaps a different thing). If a driver goes 10 years without sitting behind a wheel, which is of greater relevance to their risk posed - rusty driving skills or an antiquated NCB?
But, like any rule, there are exceptions.
Insurers operate their NCB systems differently, they aren’t all the same, offering varying levels of discount etc.
Underwriters all have some leeway too.
It’s why a Company Car driver with no personal recent Insurance and no NCB whatsoever can be granted a level of NCB when taking out personal Insurance, after supplying a driving experience letter from their Company’s Motor Insurer.
It’s why someone with no NCB can negotiate introductory NCB if they’ve been a claims free Named Driver on someone else’s Policy - like your GF’s car, perhaps.
Ring 100 Insurers and you’ll get 100 different quotes. If you have a provable good ‘story’ you can get a better deal. Many of them won’t consider an NCB older than two years, some will.
I’m pretty sure they’ll all readily accept NCB less than two years’ old, which provides the widest scope for getting the best deal.
In the OP’s case, technically he may not yet have reached the full 365 days to accrue the last, most recent year of NCB, but armed with proof of his NCB and evidence of completing the vast majority of the final year claims free, he can make the argument.
Abdul Abulbul Amir said:
they may be able to transfer your policy onto a dummy registration for the last month...this will allow you to accrue the year's no claims.
I’d be intrigued to know how an imaginary car complies with the foundational requirement of Insurance that is Insurable Interest.UnclePat said:
Abdul Abulbul Amir said:
they may be able to transfer your policy onto a dummy registration for the last month...this will allow you to accrue the year's no claims.
I’d be intrigued to know how an imaginary car complies with the foundational requirement of Insurance that is Insurable Interest.UnclePat said:
Whilst not disputing your personal experience, the two-year validity period is not an urban myth, it’s a generally accepted practice within the industry (but not a hard & fast rule).
There has to be some sort of expiry point.
NCB is supposed to evidence good driving, or at least driving without claims (which is a perhaps a different thing). If a driver goes 10 years without sitting behind a wheel, which is of greater relevance to their risk posed - rusty driving skills or an antiquated NCB?
But, like any rule, there are exceptions.
Insurers operate their NCB systems differently, they aren’t all the same, offering varying levels of discount etc.
Underwriters all have some leeway too.
It’s why a Company Car driver with no personal recent Insurance and no NCB whatsoever can be granted a level of NCB when taking out personal Insurance, after supplying a driving experience letter from their Company’s Motor Insurer.
It’s why someone with no NCB can negotiate introductory NCB if they’ve been a claims free Named Driver on someone else’s Policy - like your GF’s car, perhaps.
Ring 100 Insurers and you’ll get 100 different quotes. If you have a provable good ‘story’ you can get a better deal. Many of them won’t consider an NCB older than two years, some will.
I’m pretty sure they’ll all readily accept NCB less than two years’ old, which provides the widest scope for getting the best deal.
In the OP’s case, technically he may not yet have reached the full 365 days to accrue the last, most recent year of NCB, but armed with proof of his NCB and evidence of completing the vast majority of the final year claims free, he can make the argument.
Yes, I agree with everything you've said. I'm certainly not saying my experience is the norm and I'm aware that most ins cos state 2 years in their blurb. When I enquired about it, nearly all of them had to consult their supervisor or their underwriter about it, so does seem to be entirely at their discretion whether they wish to honour it or not. Could be based on whether the customer profile 'fits' with their business model; no idea to be honest. But based on my small sample size, I think one shouldn't worry about it too much - if you get a knockback from one place, just keep ringing round until you find one that will accept them. There has to be some sort of expiry point.
NCB is supposed to evidence good driving, or at least driving without claims (which is a perhaps a different thing). If a driver goes 10 years without sitting behind a wheel, which is of greater relevance to their risk posed - rusty driving skills or an antiquated NCB?
But, like any rule, there are exceptions.
Insurers operate their NCB systems differently, they aren’t all the same, offering varying levels of discount etc.
Underwriters all have some leeway too.
It’s why a Company Car driver with no personal recent Insurance and no NCB whatsoever can be granted a level of NCB when taking out personal Insurance, after supplying a driving experience letter from their Company’s Motor Insurer.
It’s why someone with no NCB can negotiate introductory NCB if they’ve been a claims free Named Driver on someone else’s Policy - like your GF’s car, perhaps.
Ring 100 Insurers and you’ll get 100 different quotes. If you have a provable good ‘story’ you can get a better deal. Many of them won’t consider an NCB older than two years, some will.
I’m pretty sure they’ll all readily accept NCB less than two years’ old, which provides the widest scope for getting the best deal.
In the OP’s case, technically he may not yet have reached the full 365 days to accrue the last, most recent year of NCB, but armed with proof of his NCB and evidence of completing the vast majority of the final year claims free, he can make the argument.
r3g said:
I think one shouldn't worry about it too much - if you get a knockback from one place, just keep ringing round until you find one that will accept them.
Yeah, you’re quite right. Add all the different risk appetites/target customers and various algorithms to the human factor and it can produce a bewildering range of quotes across Insurers, so putting in the legwork and establishing a rapport often does work well. I spoke with my insurer today (Admiral).
As soon as the car is sold, if there is not another car, they will cancel the Insurnace and charge the cancelation fee after any refund if applicable.
However, if within 90 days or 27 days of the end of the policy I source another car, they will re-instate it, refund the cancelation fee and honor the NCB and they'll be an adjusted payment for the remainder of the term.
No option of a delay / extension from them post car sale as others stated in the above linked thread.
The only other option would be to insure another car owned by friends/family if they were out of policy or not using a car.
My neighbours car is currently sat on their drive doing nothing, so I can insure that for a few weeks to keep the policy open with the owners permission. The person I spoke with said that would be fine.
As soon as the car is sold, if there is not another car, they will cancel the Insurnace and charge the cancelation fee after any refund if applicable.
However, if within 90 days or 27 days of the end of the policy I source another car, they will re-instate it, refund the cancelation fee and honor the NCB and they'll be an adjusted payment for the remainder of the term.
No option of a delay / extension from them post car sale as others stated in the above linked thread.
The only other option would be to insure another car owned by friends/family if they were out of policy or not using a car.
My neighbours car is currently sat on their drive doing nothing, so I can insure that for a few weeks to keep the policy open with the owners permission. The person I spoke with said that would be fine.
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