No claims bonus rip off by insurance company

[mafya 243]

I took out a commercial motor trader vehicle policy last June and had 6yrs no claims bonus to start with, I decided not to renew this year as I have sold that business and the insurance company have given me only 5yrs no claims discount back.

When I have queried this as I believe I should now have 7yrs no claims bonus I was told that the company I was with cap the no claims discount at 5yrs worth.

I started with 6yrs no claims and after a claim free year they are giving me back only 5 yrs no claims.

My broker is my friend and he is having another word with them on Tuesday as I have about 5 other various insurance policies with him and I've told him I will be taking my business elsewhere if they don't sort it out.

After doing some research it seems a few insurance companies are starting to cap no claims bonuses.

Who would i make a complaint to regarding this as I think it is a bit unfair and the worst bit is they are nicking a year of no claims that wasn't even issued by them!

Is this a new way of the insurance firms screwing us over?

Any advice would be very much appreciated as I'm not going to just let this go unchallenged.

Thanks.

[cgksheff 44]

So when you take out a new policy with whatever company, and they ask you about your claim-free history, you tell them 7 years.

I assume that you have kept the past letters that will confirm that?

 

You have lost nothing.

... or is your deal involving a physical payment back to you in the event of no claims?

 

Insurers offer a discount based upon your claim-free history.

If an insurer says that their maximum discount is 60% regardless of whether you have 5 years or 7 years, that is how it works.

 

Do you think that my 25 years claim-free history gets me a 99% discount?

[autumn 10]

So when you take out a new policy with whatever company, and they ask you about your claim-free history, you tell them 7 years.

I assume that you have kept the past letters that will confirm that?

 

You have lost nothing.

... or is your deal involving a physical payment back to you in the event of no claims?

 

Insurers offer a discount based upon your claim-free history.

If an insurer says that their maximum discount is 60% regardless of whether you have 5 years or 7 years, that is how it works.

 

Do you think that my 25 years claim-free history gets me a 99% discount?

 

But you have to send in proof of the 7 yrs if it doesn't say that on your renewal document they won't accept it . You might have to go back to your previous insurer and get them to send you your previous history .Had to do this with my husbands bit of effort but sorted in the end .

[cgksheff 44]

But you have to send in proof of the 7 yrs if it doesn't say that on your renewal document they won't accept it . You might have to go back to your previous insurer and get them to send you your previous history .Had to do this with my husbands bit of effort but sorted in the end .

 

That's why I said that I hoped he had kept his previous letters!

 

He should have a paper trail to show his continuous claim-free history.

[mafya 243]

That's why I said that I hoped he had kept his previous letters!

 

He should have a paper trail to show his continuous claim-free history.

 

The problem is that I had the policy with the same broker so at renewal time I got a letter stating renewal cost but mentioning nothing about no claims bonus, this is what happened for the last 6yrs

I do have letters saved from over the years and my broker says I should have 7yrs and that it is the insurance firm itself that is refusing to write a letter to that effect.

I will sort through my paperwork but the problem is that the bonus letter has to be issued by the last insurer as any new insurer will be getting in touch with them to confirm the bonuses.

 

---------- Post added 25-08-2013 at 17:21 ----------

 

But you have to send in proof of the 7 yrs if it doesn't say that on your renewal document they won't accept it . You might have to go back to your previous insurer and get them to send you your previous history .Had to do this with my husbands bit of effort but sorted in the end .

 

It's the previous insurer that is actually capping the no claims at 5 yrs even though I went to them with 6 yrs.

They make the rules up to suit them IMO.

[megalithic 10]

Could you say what company it is, so i can avoid them ?

[mafya 243]

Could you say what company it is, so i can avoid them ?

 

Sent you a pm with details.

[cats99 10]

it crap we had same happen went to asda we 9years no claims stayed we them a few year then left we 5 years no claims , when i rang to complain wa told should have kept old insurance policys as proof , because no matter how many you start with you leave with what ever the company reconise when you leave , most companys do same now

[Rupert_Baehr 10]

As others have said, the number of years you have been insured without a claim is irrelevant once you've reached the maximum allowed by your insurance company.

 

If you can get 60% NCB after 4 years (As was the case when I first insured in the UK) and the Insurance company awards a maximum of 60% NCB, then even if you've gone 25 years without making a claim, you'll only get 60%.

 

No claims discount is capped at a percentage of the premium - not at a number of years.

 

My present insurers (I've been with them for many years) don't use NCB -as such. They're a Mutual Company and they rebate a portion of the profits to the policyholders each year. If I decide I want to insure a vehicle elsewhere, they will give me a letter saying I've got 7 years NCB. I've got overlapping 7 year letters going back for 30-odd years - but I can't persuade any company to give me a 350% Discount on the premium.

[mafya 243]

As others have said, the number of years you have been insured without a claim is irrelevant once you've reached the maximum allowed by your insurance company.

 

If you can get 60% NCB after 4 years (As was the case when I first insured in the UK) and the Insurance company awards a maximum of 60% NCB, then even if you've gone 25 years without making a claim, you'll only get 60%.

 

No claims discount is capped at a percentage of the premium - not at a number of years.

 

My present insurers (I've been with them for many years) don't use NCB -as such. They're a Mutual Company and they rebate a portion of the profits to the policyholders each year. If I decide I want to insure a vehicle elsewhere, they will give me a letter saying I've got 7 years NCB. I've got overlapping 7 year letters going back for 30-odd years - but I can't persuade any company to give me a 350% Discount on the premium.

 

I understand what your saying but I was under the impression that 9 yrs was the maximum amount of no claims you could accumulate and because I had 6 yrs when I went with them I'm assuming that 5yrs NBC is not the maximum.

I will see what my broker says and will provide an update.

 

---------- Post added 26-08-2013 at 20:22 ----------

 

it crap we had same happen went to asda we 9years no claims stayed we them a few year then left we 5 years no claims , when i rang to complain wa told should have kept old insurance policys as proof , because no matter how many you start with you leave with what ever the company reconise when you leave , most companys do same now

 

I'm a bit ****** off myself as I have never had any insurance claim in all the years I have had my licence.

[dog-groomer1 10]

I'm having this sort of problem with my new insurer 'Swift cover'

I have 22 years without a claim and stated this when taking out a new quote.

However,my previous insurer only accepts a maximum of 9 years NCD and this is what it states on my old policy,which has been subsequently sent to Swift cover.

 

I recently had a letter from Swift cover stating that if I cannot prove the 22 years NCD,my policy would be cancelled and I would be charged £40 for the inconvenience .

Why cant 'Swift' just contact my previous insurer and get the full details.

[anoushenka 10]

The problem is that I had the policy with the same broker so at renewal time I got a letter stating renewal cost but mentioning nothing about no claims bonus

 

 

On the renewal quote/letter there should still somewhere be a mentioning of your no claims bonus, as this is what they base the renewal quote on. It might be very small but it should be there. it is on all of my insurance letters of the past 8 years and I have been with 6 different insurance companies Good luck!