Direct Line NCD ripoff

[grumblebuttock]

Hi. I recently received my renewal notice from Direct line after one of my named drivers had a 'fault' accident right at the start of the policy. When I took out the insurance I checked the '9 years NCD' box on the internet form ( I have actually got well over 30 years without a claim ) and I now discover that this has been adjusted to 3 years NCD because of the claim. Direct line wrote that this is because they have a maximum of 5 years NCD on thier policies and I have lost two because of the claim. Seems grossly unfair that!!I realise that a claim will affect it but 6 years! I have now sent two letters ( the last one recorded delivery a nonth ago) questioning the decision but have not received a reply. Any suggestions would be most welcome. (Named driver is now insured in his own name)

[vusys1]

5 years is the maxium discount most insurers will give (not sure who would offer more)think LV offer 70% not sure if that also equates to 5 years.

 

although i do see your point, if you supply evidence of 9 years ncd and all docs say if you have a claim we will reduce your ncd by 2 years this shoud be 7 years.

[vusys1]

their website states::

 

"Every year you hold a policy in your own name without making a claim, you build up a no claims discount which saves you money.

 

If you go on to accept a policy with us, you will be asked to provide proof of your earned no claims discount.

 

This proof should be a renewal notice from your previous Insurance Company, or a letter on headed paper from the Insurance Company.

Every year you hold a policy in your own name without making a claim, you build up a no claims discount which saves you money.

 

In certain circumstances we may be able to obtain this for you.

 

N.B. This no claims discount can only be used on one policy at any one time, and must have been used on a policy within the last two years."

 

the online policy documents are also vague:

 

No Claims Discount

 

"However, if a claim is made against your policy, we may reduce your no claims discount."

 

 

Was there a scale on your schedule showing how they step back you ncd years?

[grumblebuttock]

Hi. I have read through the gumf supplied with the policy and cant find much about NCD at all let alone a scale of reduction. Maybe its in the really tiny print that you have to download. I will have a root around.

[grumblebuttock]

Hi Again. This looks to be another of those grey areas favoured by grey people wearing grey suits. Have found a section that states that over 50s ( thats me alright) 'may be' entitled to 70% but can't find anything definite on NCD reductions. Maybe it's dependant on the scale of the claim- if you total a roller they knock off 30% but only 10% for a beat up Punto.

[kayco]

The scale of discounts for Direct Line is as follows:

 

· One year - 30%

· Two years – 40%

· Three years – 50%

· Four years – 60%

· Five years – 65%

· Five years + and p/h aged over 50 – 70%

 

This means if you have been claim free for 10 years you will be entitled to 70% discount.

 

You will loose 2 yrs ncb per claim you make. example if you have 70% (5 years or more) discount and make a fault claim, you will have 50% (3 yrs) discount at renewal. The cost of the claim does not make a difference at all.

 

After 4 years, you can protect your NCD for a small extra premium. You can make 1 claim in any year or 2 claims in any 3 year period, and you won't lose your ncb.

Edited December 22, 2009 by kayco
pncb

[vusys1]

the RBS underwriting guide has spefically removed the %scales in order not to disclose them.

[kayco]

The best thing to do is call the claims department and get them to confirm the scales.

[kwaks]

Pretty standard across the board to be honest. Step back has always been applied from 5 years to 3 years regardless. Has been the case since I worked in insurance 15 yrs ago, and has been the case with DL since they started.

 

It is not a rip off, in fact if you were able to see the underwriting load due to the claim if it was indeed minor, then you would probably find DL are limiting the increase and applying some discretional discounts. In effect they will prob be competitive in renewal prices.

 

Phone ANY company, tell them you had one fault claim on the policy with an unprotected bonus which had started that year at 9 plus. Every single one will tell you it has stepped back to 3 years.

[MILLER.R10]

I started with direct line in 2007 i had 9 Years NCB,i had an accident in 2008,2010 one fault one pending since my renewal in feb 2011 i have been told my NCB is 2 Years is this Right?as both been classed as fault accidents that means i would have lost 7 years for two minor accidents,I have demanded my legit NCB they refuse too give can somebody help?

[unclebulgaria67]

I started with direct line in 2007 i had 9 Years NCB,i had an accident in 2008,2010 one fault one pending since my renewal in feb 2011 i have been told my NCB is 2 Years is this Right?as both been classed as fault accidents that means i would have lost 7 years for two minor accidents,I have demanded my legit NCB they refuse too give can somebody help?

 

Yes DL are correct. Although they may note the NCB as 9 years, the max NCB is usually 5 years and this is what the deduct from if you have a fault claim. So you were knocked back 4 years for the 2 fault claims and have gained a year for a year you were claim free for.

 

You can work it out for yourself, as you know the claim dates and the dates the policy runs from. Just ignore 9 years and deduct from 5 years.

[Wulfyn]

Plenty of insurance products offer up to 10 or 11 years NCD now, and plenty of others, even though their discount doesn't increase once you go beyond 5 years, will still use a higher number with regard to calculating step-back.

 

You should always read the policy booklet before purchasing insurance.

 

 

If you are unhappy with how your NCD has been stepped back then find a broker / insurance company that will make an exception.