Substantial Reduction in car NCD

[Ptarmigan57]

When I renewed my policy with QuoteMeHappy in August 2022, I declared a claim with a different vehicle, not insured by Quotemehappy.

I also queried what NCD I would be entitled to on the (then current) policy ending August 2022. QMH confirmed it would be 7 years.

When I queried the premium on the new policy, that had reduced substantially in cost, I was advised that the previous claim with a different vehicle, not insured by Quotemehappy, had been taken into account.

I have just (April 2023) cancelled the renewed policy with QMH, as I sold the vehicle, and do not have a replacement. 

The NCD that QMH provided showed only 1 year of NCD. 

I queried this reduction. QMH have confirmed that because of the accident I had with another vehicle, not insured by Quotemehappy, and prior to the start of the latest policy my NCD was reduced by 6 years (I did not have protected NCD).

I haven't been in this position before, is this level of reduction normal?

[unclebulgaria67]

Normally you would lose 2 years.   And it would be 2 years off the normal max NCD that is used for the industry NCD proof system which is typically 5 year.  So I would think you should still be entitled to 3 years NCD

 

This is based on my knowledge of the NCD system and how claims affect NCD, from working in Insurance from many years ago. I don't think the system has changed that much,  where one claim would reduce NCD to only 1 year, when the Insurers previously told you that you would be given 7 years NCD.

 

Sounds like the Insurers have made an error, so definitely raise a complaint.

[Ptarmigan57]

Thanks for the reply, much appreciated.

 

I have asked them to confirm they have a mistake, and they have restated their position. I raised a complaint, and have an email that represents a "deadlock communication" so my thinking is to go to the Ombudsman.

 

Apart from the 6 years reduction, what took me by surprise was that a claim on a different vehicle, with a different insurer, could affect this NCD.

 

[Ethel Street]

My experience in the industry was a while ago now but what you describe was definitely not how it worked in the past. A no CLAIMS bonus should mean no claims under that insurer's policy.

 

Otherwise that insurer hasn't had a claim under their policy but are still claiming the right to reduce the NCB.

 

Sounds all wrong to me.

 

The policy wording is key thing. What does the NCB clause in the policy actually say?

[unclebulgaria67]

Yes if they have rejected complaint, go to the FOS.

[Ptarmigan57]

An update on this.

 

After a further 4 attempts to get Quotemehappy to listen, I finally received a response that confirmed that their previous position was incorrect. There should have been no reduction in my NCD due to a claim on another vehicle with another insurer.

 

All they have offered is a correct NCD which I now have received. I have requested compensation, and will see how that goes, not holding my breath.

 

In parallel I did raise a case with the FOS.