a quick question about no claims

[postmn]

when I got my new car last year I had 7 years no claims according to my last insurance company , fast forward to this year and I have my renewal from my currwnt insurance and they have said I have 3 years . i had two accidents last year one in march (Other party accepted full liability ) and one in novemeber which was my fault (I slid off the road) no one else involved . subsequently they said you will loose 2 years no claims which would bring you down to 3 years ( surely that cant be right since i had 7 years at the beginning of 2013

[Desperate Daniella]

Hi,

 

It sounds like they have taken off two years for each accident. They would do that automatically for the first accident and should have reinstated it when the other party admitted full liability and the claim was settled. Sometimes insurance companies need reminders! I hope they have adjusted your payments if you had to pay a higher premium because of the first accident.

 

DD

[unclebulgaria67]

No, the no claims discount is basically a standard 5 years across the insurance industry, when looking at this from any adjustment following claims. So you had 1 fault accident, which incurred a 2 year reduction.

 

When Insurers allow any discount beyond 5 years, this is down to the individual companies to do this, but if you read the small print, it will tell you that if you have any fault claim, there will be a 2 year reduction on the standard 5 years.

 

It always used to be 5 years max no claims discount, but then Insurers from a marketing point of view started to advertise 7 years no claim and some now even have 9 years no claims. But the amount of discount allowed over 5 years, is pretty minimal.

[postmn]

well just looked at the insurance quote and lets said they doubled it . needless to say I will be moving insurance companies

[unclebulgaria67]

well just looked at the insurance quote and lets said they doubled it . needless to say I will be moving insurance companies

 

Yes shop around. You have lost no claim discount, but you will also have a loading for 2 accidents. So a doubling of premiums is to be expected. But you might get a better quote elsewhere.

[Desperate Daniella]

No, the no claims discount is basically a standard 5 years across the insurance industry, when looking at this from any adjustment following claims. So you had 1 fault accident, which incurred a 2 year reduction.

 

When Insurers allow any discount beyond 5 years, this is down to the individual companies to do this, but if you read the small print, it will tell you that if you have any fault claim, there will be a 2 year reduction on the standard 5 years.

 

It always used to be 5 years max no claims discount, but then Insurers from a marketing point of view started to advertise 7 years no claim and some now even have 9 years no claims. But the amount of discount allowed over 5 years, is pretty minimal.

 

Sorry. I was obviously wrong about this. Might be worth taking it up with them though.

[Desperate Daniella]

Yes shop around. You have lost no claim discount, but you will also have a loading for 2 accidents. So a doubling of premiums is to be expected. But you might get a better quote elsewhere.

 

Surely there should only be loading for one accident?

 

Like postmn I had two accidents within a short time and neither of them was my fault. My premium almost doubled but as each claim was settled my monthly payments were adjusted and refunds given.

 

When I tried for new quotes I firstly had to apply for quotes with two accidents shown as my fault as they hadn't been resolved, but all the quotes were reduced when I showed only one accident. When both claims were settled I was back to normal and the no claims aspect was too.

[unclebulgaria67]

Insurers load premiums depending on the accident/incidents advised to them. The loading for 2 accidents, will be more than for 1.

[Desperate Daniella]

Exactly. But as the first claim has been settled 100% in postmn's favour, surely his premium should only be loaded for the remaining one?

[unclebulgaria67]

Exactly. But as the first claim has been settled 100% in postmn's favour, surely his premium should only be loaded for the remaining one?

 

Not the way it works. The more accidents/incidents you have, the more the risk, even if some were non fault. It could be the way the person drives, the risk assesment they make when parking their cars, that they are an unlucky person. etc etc.

 

You will have heard so many people say to you that they have driven for 30 years without any accidents, then suddenly they have a few in a row. During those 30 years they would have benefitted from cheaper premiums because they were a better risk. When you start having accidents, the Insurers apply loadings that reflect that you have become a worse risk.

[Desperate Daniella]

Then my insurance company must be pretty good because when both the accidents in one year were deemed not to be my fault they refunded everything they had added when the claims were going through, first one and then the other, and my premium fell for renewal the following year.

[MaxxPower]

Exactly. But as the first claim has been settled 100% in postmn's favour, surely his premium should only be loaded for the remaining one?

Insurers insist that even when the accident is 100% non-fault, that person is somehow more likely to be involved in an accident again. So even if the non-fault accident had been the only one, the premiums would possibly still have increased.

[Desperate Daniella]

Then I am especially grateful that mine went down after two!