Puzzling Insurance Quote
Discussion
So earlier today I was having a chat with a local old chap who I know and has a '98 XK8, which he's had for ~20 years or so. I've always admired it as he looks after it.
Anyway, he mentioned in passing that he'd sell it to me if I wanted it; which naturally has piqued my interest as a 2nd car.
So tonight just doing some cursory insurance quotes on the meerkat, 8k miles a year, fully comp for business use, with legal and breakdown cover and £250 excess and with NO NCD, the cheapest was £229 from eSure.
That is flippin cheap I thought.
So then I stuck in 15+ years NCD (if I was to have it as my daily driver) and the cost went up to £342 (with Admiral). I changed nothing else other than the NCD!
So then I changed it back to no NCD and it again quoted me the same prices as the first time.
I'm puzzled by this, as I'd expect it to be the other way around.
Is there some logic I'm missing?
Anyway, he mentioned in passing that he'd sell it to me if I wanted it; which naturally has piqued my interest as a 2nd car.
So tonight just doing some cursory insurance quotes on the meerkat, 8k miles a year, fully comp for business use, with legal and breakdown cover and £250 excess and with NO NCD, the cheapest was £229 from eSure.
That is flippin cheap I thought.
So then I stuck in 15+ years NCD (if I was to have it as my daily driver) and the cost went up to £342 (with Admiral). I changed nothing else other than the NCD!
So then I changed it back to no NCD and it again quoted me the same prices as the first time.
I'm puzzled by this, as I'd expect it to be the other way around.
Is there some logic I'm missing?
As above - when i was getting quotes for my '03 Mk1 FRS recently it was £100 more if i insured on a policy that utilised the 20 odd years of NCB that have been attached to the car for years. As the car is now over 20 years old, quoting it on a modern classic policy (no NCB) was cheaper (although it ended up on a SORN / laid up job in the end incase i don't end up using it).
Mr Tidy said:
The car is over 20 years old, so maybe the eSure quote is for some sort of Classic Car policy as they generally don't have NCD.
It's a stupid piece of design on the part of the comparison site if this is the reason. Just because you've put in a NCB shouldn't mean that they don't get quotes from companies which wont take it into account! It might be a genuine statistical correlation, where someone insuring a "classic" with a NCB is much more likely to be using it as a daily driver, whereas someone insuring one with no NCB but also no accident history is probably using it very rarely and with a lot more care?
Good to know though, I'll have to remember to try it next time I reinsure my Elise!
Edited by kambites on Tuesday 14th May 07:33
Jinba Ittai said:
Likelihood is an actuary has decided that if you’ve gone 15+ years without an accident, the laws of probability say you’re more likely to have an accident sooner than someone who had one six months ago!
Nope, that's an urban myth. Far more likely as said above, having no bonus qualifies you for a collectors car policy that earned bonus excludes you from. kambites said:
Mr Tidy said:
The car is over 20 years old, so maybe the eSure quote is for some sort of Classic Car policy as they generally don't have NCD.
It's a stupid piece of design on the part of the comparison site if this is the reason. Just because you've put in a NCB shouldn't mean that they don't get quotes from companies which wont take it into account! It might be a genuine statistical correlation, where someone insuring a "classic" with a NCB is much more likely to be using it as a daily driver, whereas someone insuring one with no NCB but also no accident history is probably using it very rarely and with a lot more care?
Good to know though, I'll have to remember to try it next time I reinsure my Elise!
Edited by kambites on Tuesday 14th May 07:33
So non NCB because it might be your third car, so hobby car and thus lower risk.
leef44 said:
Ah this makes more sense.
So non NCB because it might be your third car, so hobby car and thus lower risk.
beat me to it, with nil ncb the risk will be classed as a 2nd or 3rd car so really low risk low premium, using your ncb it will be classed as your main every day car hence higher premium.So non NCB because it might be your third car, so hobby car and thus lower risk.
I guess it does make sense with the possibility of it being a 'classic car' policy. I did not click through to the insurers website to get the details. I was really just after a fairly indicative price.
I've used all my legit/current details and requirements as if I was buying it right now (for business use, breakdown/legal cover, etc, etc); so I get a good idea of the cost.
I'll run it again tonight, from scratch, and add Mrs. K to it too as an option. I'll also try go.compare too.
I've used all my legit/current details and requirements as if I was buying it right now (for business use, breakdown/legal cover, etc, etc); so I get a good idea of the cost.
I'll run it again tonight, from scratch, and add Mrs. K to it too as an option. I'll also try go.compare too.
So started over from scratch, plugging in all the right details as if I'm going to buy right now.
Fully comp, with £250 voluntary excess, legal, windscreen, breakdown and personal accident cover. 8k miles, SDPC and 1k miles business use. NCD is not protected.
Clicking through to the top insurers websites, there's no mention or reference to 'classic car' insurance
However, picking up on what kambites, leef44 and Mr. Potter all suggest above that it's probably an assumption it's as a 2nd/hobby car therefore lower risk.
Anyhow, thanks all, for your inputs and thoughts
Fully comp, with £250 voluntary excess, legal, windscreen, breakdown and personal accident cover. 8k miles, SDPC and 1k miles business use. NCD is not protected.
Clicking through to the top insurers websites, there's no mention or reference to 'classic car' insurance
However, picking up on what kambites, leef44 and Mr. Potter all suggest above that it's probably an assumption it's as a 2nd/hobby car therefore lower risk.
Anyhow, thanks all, for your inputs and thoughts
Gassing Station | General Gassing | Top of Page | What's New | My Stuff