NCD - Utter shower

Author
Discussion

Ubiquitous2024

Original Poster:

187 posts

4 months

Yesterday (11:15)
quotequote all
So how does this work then.

I have been driving for 24 years this year, every year I have had an insurance policy and every year it has not lapsed or cancelled. So therefore I have 24 years of not claiming. And up until recently, this has all been rolling over nicely with the figure changing each year, and no issues.

Then this year I have renewed and found out that my NCD has been set at 9 years. Why? Because of course, each insurance company has a different figure for what they consider maximum reward. So one companies max is 9 years whereas another one is 25 years and so on and so forth. So because of this, my figures are skewed, and now I have to do all the leg work and provide proof, going back over the years, to try and rectify this error not of my making.

I have approached a few previous companies and of course, as it is historic, they don't have any interest to assist me. I also can barely remember who I was insured with as they are all search engine results and brokers / sub insurers what have you. I put all this to the current insurer who basically agreed saying yup, it is rubbish, but that's how it is.

I have managed to get agreement on 21 years NCD, however there are 3 missing and there is refusal to accept I have no claims for 24 years. This is all because "computer says no", and because "computer has decided it will allocate a different each time number based on whatever that companies preferences were".

How is this allowed?

randlemarcus

13,601 posts

239 months

Yesterday (11:19)
quotequote all
Because NCD is a discount, not a legal right. Each company sets its maximum discount time, and only tracks that. If their customer acquisition strategy saw a big uplift in customers with 20 yrs, then they would go after that market. As it is, a) there probably isnt much extra profit in it for them and b) most people cant track a couple of bits of contract after any amount of time (see your difficulty in finding out who you were insured with).

mmm-five

11,465 posts

292 months

Yesterday (11:24)
quotequote all
My insurer only allows me to put '15+' into their quoting system...yet their renewal email to me shows 24 years or NCB.

But it's a business choice, not a regulatory requirement, to offer/use NCB/NCD, so maybe ask this specifically each time you get a quote? You may/will also find that one company's (Saga Plus for example) max 75% discount after 4 years is a better option than another company's (Sheila's Wheels for example) max 73% discount after 20 years.

https://www.which.co.uk/money/insurance/car-insura...

Riley Blue

21,665 posts

234 months

Yesterday (11:26)
quotequote all
Ubiquitous2024 said:
So how does this work then.

I have been driving for 24 years this year, every year I have had an insurance policy and every year it has not lapsed or cancelled. So therefore I have 24 years of not claiming. And up until recently, this has all been rolling over nicely with the figure changing each year, and no issues.

Then this year I have renewed and found out that my NCD has been set at 9 years. Why? Because of course, each insurance company has a different figure for what they consider maximum reward. So one companies max is 9 years whereas another one is 25 years and so on and so forth. So because of this, my figures are skewed, and now I have to do all the leg work and provide proof, going back over the years, to try and rectify this error not of my making.

I have approached a few previous companies and of course, as it is historic, they don't have any interest to assist me. I also can barely remember who I was insured with as they are all search engine results and brokers / sub insurers what have you. I put all this to the current insurer who basically agreed saying yup, it is rubbish, but that's how it is.

I have managed to get agreement on 21 years NCD, however there are 3 missing and there is refusal to accept I have no claims for 24 years. This is all because "computer says no", and because "computer has decided it will allocate a different each time number based on whatever that companies preferences were".

How is this allowed?
24 years NCD is news to me. I thought it was something like 60% after nine years maximum though I know it varies but not as long as 24 years.


Doofus

28,614 posts

181 months

Yesterday (11:36)
quotequote all
randlemarcus said:
Because NCD is a discount, not a legal right.
This. NCD doesn't exist; it's marketing.

Drumroll

3,997 posts

128 months

Yesterday (11:37)
quotequote all
Riley Blue said:
24 years NCD is news to me. I thought it was something like 60% after nine years maximum though I know it varies but not as long as 24 years.
Same with me.

Dingu

4,395 posts

38 months

Yesterday (11:46)
quotequote all
24 vs 21 years is irrelevant. Honestly don’t stress over it, there’s no point.

Griffith4ever

4,827 posts

43 months

Yesterday (11:56)
quotequote all
Aye, I've not claimed for over 30 years. I just select the highest number of years available when getting quotes. Quite often is offers something like 9+

Decky_Q

1,667 posts

185 months

Yesterday (12:00)
quotequote all
As you can see the 24 years wasnt much use when you got cheaper insurance with 9 years, so not much of a loss imo.

cobra kid

5,257 posts

248 months

Yesterday (12:07)
quotequote all
Must be due some compunsayshun

BertBert

19,736 posts

219 months

Yesterday (12:10)
quotequote all
Ubiquitous2024 said:
So how does this work then.

I have been driving for 24 years this year, every year I have had an insurance policy and every year it has not lapsed or cancelled. So therefore I have 24 years of not claiming. And up until recently, this has all been rolling over nicely with the figure changing each year, and no issues.

Then this year I have renewed and found out that my NCD has been set at 9 years. Why? Because of course, each insurance company has a different figure for what they consider maximum reward. So one companies max is 9 years whereas another one is 25 years and so on and so forth. So because of this, my figures are skewed, and now I have to do all the leg work and provide proof, going back over the years, to try and rectify this error not of my making.

I have approached a few previous companies and of course, as it is historic, they don't have any interest to assist me. I also can barely remember who I was insured with as they are all search engine results and brokers / sub insurers what have you. I put all this to the current insurer who basically agreed saying yup, it is rubbish, but that's how it is.

I have managed to get agreement on 21 years NCD, however there are 3 missing and there is refusal to accept I have no claims for 24 years. This is all because "computer says no", and because "computer has decided it will allocate a different each time number based on whatever that companies preferences were".

How is this allowed?
Do show us the companies where 24 years is needed to get to max discount...

Aretnap

1,693 posts

159 months

Yesterday (12:19)
quotequote all
NCD is a marketing gimmick - nothing more, nothing less. Basically it's a loyalty discount - a way of encouraging your customers (particularly the good ones who don't make claims) to renew year after year - and the idea is that you only get it if you renew with the same company.

Of course it doesn't actually work like that, because insurers realised that if they wanted to attract new customers they would have to offer to match their rivals' discounts. A bit like how Tesco might offer to accept Sainsbury's money off vouchers from time to time - not because they're under any moral or legal obligation to accept them, but just because they think it's a good way of poaching Sainsbury's customers.

But as it's ultimately still just a loyalty discount, each insurer is free to work its loyalty discount any way it likes, or not to offer it at all. If insurer A only wants to offer or record NCD up to 9 years, that's up to them. If you want a certificate that says "25 years NCD" that badly, then the only certain way to do it is to find an insurer that actually offers 25 years NCD, then stay with them for 25 years. (And ideally don't have any claims.)

To push the supermarket analogy a bit further, demanding that insurer A records your 25 years NCD just because insurer B might actually care about more than 9 years is a bit like demanding that not only should Tesco accept Sainsbury's money off vouchers, Sainsbury's should have to print them in a format that's easy for Tesco's tills to read. Erm, no, they don't have to do that.

guffhoover

551 posts

194 months

Yesterday (12:22)
quotequote all
How does it work as loyalty gimmick when it can be transferred between providers?

I've always thought it was a coarse measure of risk. Once you get a few years NCB there's probably not much in it in terms of discount

Ubiquitous2024

Original Poster:

187 posts

4 months

Yesterday (12:40)
quotequote all
Ok. But each individual companies strategies aside - if I have had interrupted policies for 24 years, and I am then asked how long I have not claimed for when looking around for the next years policy, my entitlement is 24 years, as that is how long I have not claimed for without a break in cover.

Why am I penalised and told no it is only 9 years, purely because of the administrative parameters placed upon my history by the outgoing company?

Many search engines and direct sites allow a figure of up to 25 and I have seen some at 30 odd. So there is certainly scope for a higher figure.

BertBert

19,736 posts

219 months

Yesterday (12:49)
quotequote all
Ubiquitous2024 said:
Ok. But each individual companies strategies aside - if I have had interrupted policies for 24 years, and I am then asked how long I have not claimed for when looking around for the next years policy, my entitlement is 24 years, as that is how long I have not claimed for without a break in cover.

Why am I penalised and told no it is only 9 years, purely because of the administrative parameters placed upon my history by the outgoing company?

Many search engines and direct sites allow a figure of up to 25 and I have seen some at 30 odd. So there is certainly scope for a higher figure.
But it doesn't mean anything, nothing at all. No insurance company gives a toss for you having 24 years of not claiming via the NCD.

It simply gives a percentage off, going up at a rate that maxes out after 6-9 years.

You are not penalised and you have no better entitlement at 24 years than you do at 9.

blueovercream

297 posts

99 months

Yesterday (13:06)
quotequote all
I think the OP's point is

- They are now insured with Company A who recognise eg 25 years of no claims and increment to this point
- They were previously insured with Company B who apply maximal discount at 9 years +
- Company A's automated system therefore says only 9 years and so apply only 9 years discount to the policy, when the OP could in fact be entitled to Company A's full discount

All this is moot however, because if you've now managed to negotiate 21 years worth of NCD the difference between that and. your "full" 24 years is likely to be a very small fraction of your premium. I wouldn't stress about it.

WeirdNeville

6,009 posts

223 months

Yesterday (13:09)
quotequote all
I only have a couple of years NCD. It makes virtually no difference to premiums vs friends locally. I can still insure anything I could reasonably want.

What matters is claims history and driving record, plus post code lottery and key risk factors. 'NCD' is just a loyalty scheme really.

Definitely not worth getting bent out of shape over.

Dingu

4,395 posts

38 months

Yesterday (13:09)
quotequote all
blueovercream said:
I think the OP's point is

- They are now insured with Company A who recognise eg 25 years of no claims and increment to this point
- They were previously insured with Company B who apply maximal discount at 9 years +
- Company A's automated system therefore says only 9 years and so apply only 9 years discount to the policy, when the OP could in fact be entitled to Company A's full discount

All this is moot however, because if you've now managed to negotiate 21 years worth of NCD the difference between that and. your "full" 24 years is likely to be a very small fraction of your premium. I wouldn't stress about it.
I doubt they increment to 25 years.

mmm-five

11,465 posts

292 months

Yesterday (13:09)
quotequote all
Ubiquitous2024 said:
Ok. But each individual companies strategies aside - if I have had interrupted policies for 24 years, and I am then asked how long I have not claimed for when looking around for the next years policy, my entitlement is 24 years, as that is how long I have not claimed for without a break in cover.

Why am I penalised and told no it is only 9 years, purely because of the administrative parameters placed upon my history by the outgoing company?

Many search engines and direct sites allow a figure of up to 25 and I have seen some at 30 odd. So there is certainly scope for a higher figure.
You have 24 years of NOT CLAIMING.

You DO NOT have 24 years of NO CLAIMS DISCOUNT, as that is purely down to a commercial decision from individual insurers.

Individual companies 'strategies' cannot be 'put aside' simply because you don't agree with them...if you don't like it, go elsewhere that gives you tiny increments of discount for each year, rather than somewhere that gives you a bigger discount per year.

If you must have it recorded, then tell the insurer to add a note to your policy showing this. If they can't / won't do it then go elsewhere if your principles are worth more than the extra premium.

blueovercream

297 posts

99 months

Yesterday (13:12)
quotequote all
Dingu said:
I doubt they increment to 25 years.
Well according to the OP they increment to at least 21. Agree I've not come across a company that goes as high as that. I think mine maxes at 15.