Anonymous
Anonymous asked in Business & FinanceInsurance · 1 decade ago

Will I lose my No claims Bonus?

My Insurance ran out in October and I havent got round to sorting it until now.

I had 4 years no claims bonus when it ran out, does this still stand with the new insurance company even though there is a gap of 2 months?

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  • 1 decade ago
    Favourite answer

    If you are switching companies, does the new company offer this bonus? Sometimes if you stay with the same company, you can get your account reinstated.

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  • Anonymous
    1 decade ago

    Having worked for an insurance firm (until around 4 hours ago...ho ho humbug to the evil bosses firing people at xmas)

    I can advise you on a few things. First, check what type of policy it is - it should start with a few letters, usually 3. Dependant on this type, there may be a different way that No Claims Discount (NCD) is calculated. On some policies, it is capped at 3 or so years, with each claim reducing the NCD by 1 year. On others, there is a cap of 5 years and one claim will wipe out the entire discount.

    As far as I can read into it though, in my experience NCD has been brought forward from another policy, if no claims have been made on that specific policy (for example in home insurance, it is split into both Buildings and Contents. A claim on the Contents would affect the Contents NCD but not the Buildings NCD.

    Different insurance companies work in different way. Have a word with them and see what they say, after all, they probably know best. And if you HAVE lost it, then so be it.

    Hope that helped.

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  • 1 decade ago

    Usually speaking you need continous claim free insurance, but in many cases you can still get the best rate if you can prove you were in a "no-need" situation, like not owning a car. The gap you speak of could hurt, but I have seen some shady stuff in my days and wouldn't be surprised if you were able to find a company that isn't checking for prior insurance, etc. Many insurance carriers use what we call CLUE, basically a claim and insurance database that could show losses and lapses. Best advice, get quality insurance from a reputable company and set up an auto-pay account from your checking account.

    Source(s): Licensed Agent, Oregon
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  • 1 decade ago

    If you have kept your old certificate of insurance and the following renewal document which your insurers should of sent you just before it was due, that should be enough proof.

    Both these documents have your proof of bonus on, which the new insurance company will be able to trace on a data base or confirm with your old insurer.

    You will also have up to 2 years to reinstate the insurance from expiry. You can only loose the bonus if you have enough accidents decreasing the bonus (look at the policy terms) or if you don't renew within the 2 years.

    Source(s): Worked in insurance
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  • 1 decade ago

    Anytime you have a gap of more than 30 days, its as if your startin all over again.Those 4 years of prior insurance with renewals gave you the best rate, now its as if your beginning as a new driver. I dont know what company you had, but if you tried to switch to a halfway decent company like State Farm or Allstate, its going to be costly. Normally you start to get the best rate again after 1 year without gaps.

    Source(s): I am an insurance agent
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  • 1 decade ago

    Nope, not only will you not keep your "no claims bonus", but with a lapse of 30 days or more, you'll see a significant increase in your rates, and if this is auto insurance, *might* be classified as high risk. Your expired carrier will PROBABLY not want to take you back, but you'll have to call your agent to be sure.

    Source(s): agent, 20+ years
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  • 4 years ago

    First, what's your finished deductible? next, locate out what the value is to interchange your window. If the value is below your deductible, then do no longer hardship submitting a declare. Your coverage company does not disguise any own assets interior the motor vehicle in any case. If the value to repair is better than your deductible, call your agent and ask them if Vandalism claims result your no claims bonus.

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  • Anonymous
    1 decade ago

    request proof of no claims from last company and think of a good reason to not be insured 2 months, maybe savin for a car or u went overseas with work or something and any reputable insurance company shud allow your discount to continue

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  • 1 decade ago

    i dont know because of the gap

    did you protect your no claims - i know it costs more but its worth it

    the only way you should get away with it is to renew with another company but as there is a database for all insurance policies you better be honest about the two months lapse.

    any false info could jeopardise any policy

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  • 1 decade ago

    No don't worry it's all on computer anyway.

    The easiest thing is to stay with previous company but negotiate otherwise you'll have to wait for certificate from old company to send to new one.

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