Loss of no claims discount

[F3lb4d]

Hello fellow forum members

 

I'm looking for some advise for my sister who has had her insurance renewal come through at a higher than expected price. Upon looking into the renewal, it shows her no claims bonus is at 4 years, not the expected 9years that she should be entitled to.

 

She rang her insurance company today to find out the reasons why this has happened, and they have stated its due to an incident that occurred in 2015. To keep this story shorter, it was a 50/50 clash of mirrors... my sister informed her insurance of the incident (as you should do) and told them that she and the other party would be sorting the issue between themselves, she assumed that was the end of it.

 

So now due to this minor accident, that no one has made a claim on she has lost 5 years of no claims (as she didn't have it protected) due to the fact there "may" be a possible future claim.

 

Does this sound right? It was my understanding that any accident should be reported to your insurance company, but in doing so she is now worse off even though she has gone through the correct channels.

 

Any help or advise would be greatly received.

Thank you in advance

[unclebulgaria67]

I suspect the max years used for discount purposes was 6 years as following a claim or potential claim, you normally lose 2 years. Hence why 4 years is showing.

 

If your Sister still has the third parties details, she could see if she can get a signed note from them, that they will not be making any claim against her policy. She should also ask the third party whether they claimed on their own policy, as if they did, then their Insurance company may try to claim against your Sisters Insurance. If no claim was made by them against any insurance and they confirm that they will not be doing so, then this could help. Your Sister should check with her Insurers whether getting such a note from the third party would enable them to reinstate the full no claims, to save her wasting time.

 

If a period passes without receiving any claim for payment, your Sisters Insurers should reinstate the no claims anyway and issue a refund. She should ask her Insurers how long they allow for the third party to submit a claim, before no claims is reinstared.

[F3lb4d]

Hi and thanks for that unclebulgaria67

 

I will relay this back to my sister. From what she said to me on the phone this morning, her insurance company didn't sound too helpful... but you have confirmed my own thoughts with regards to reinstating NCD if no claim has been made.

Knowing the time scale they allow for a third party claim is really the next step, as I'm sure the incident took place over 6 months ago.

 

Once again thanks for your time and input.

[unclebulgaria67]

Some companies allow a year before reinstating. With Direct Line i think my Sister waited 3 years, as the third party driver was trying to claim for injuries.

 

Reinstatement of no claims is not always automatic. She might have to chase it up.

[F3lb4d]

Thanks again for the great information!