Keeping ncb

kbell

Friend starting new job with company car, car is insured by company.
He'll be selling his own car and not renewing his own Insurance which is due April 1st.
I's there any way to secure his ncb that he's built up so as if he has to get his own policy again his ncb will be valid?

To Elland Back

Buy and insure some old yoke before the 2 year limit on NCBs expires. Lapse it after the 1st year and repeat

CiniO

Also after obtaining this cover, suspend it the next day and keep it suspended for all year.
You will still earn NCB, but will only pay percentage (usually 10-15%) of policy cost for that period.

So f.e. policy expires on April 1st 2015 and person has 50% NCB.

Then he can buy some cheap car (might be even non runner) and purchase policy on 30t March 2017 and still use his NCB 50%. Assuming policy costs 300, then next day suspend the policy, and keep it suspended for 12 month. Then by 30th March 2018, his policy will expire, and refund of about 260 will be issued so overall cost of policy will be only 40. Then again 2 years and by 30th March 2020, he might actually need policy again, or just repeat the trick.

To Elland Back

If you suspend a policy shortly after taking it out and let it run until the renewal date, insurers will treat the original suspension date as a cancellation date. This will not allow you extend the life of your NCB

CiniO

To Elland Back wrote: »

If you suspend a policy shortly after taking it out and let it run until the renewal date, insurers will treat the original suspension date as a cancellation date.

Why?

This will not allow you extend the life of your NCB

What if you suspend it say after 10 months - so policy active for 10 months and then suspended for 2 months.
Will this give you full year NCB entitlements?

challengemaster

CiniO wrote: »

What if you suspend it say after 10 months - so policy active for 10 months and then suspended for 2 months.
Will this give you full year NCB entitlements?

I wouldn't think so - same as if you cancelled your policy after 10 months, you lose that year NCB.

CiniO

challengemaster wrote: »

I wouldn't think so - same as if you cancelled your policy after 10 months, you lose that year NCB.

I intentionally asked this question to Elland Back, as I actually have direct experience in doing this.

My wife's policy was always suspended for last two months every year, and even though she gained NCB from 0 to 50% over 5 years. Suspension of policy didn't affect NCB.

Due to suspension, she was always getting a refund of about 15% of the premium.


That's why I'm surprised on what Elland Back wrote.
Unless it's different for policies suspended for more than half of policy period or something (which I strongly doubt) I don't think he's right.

Ah-Watch

I was insured with FBD up until October 14 when I sold my car and travelled Oz for a month. I knew I was moving to NY in January so there was no point in renewing which I told FBD straight up- why, where I would be and when. I was given two options.

1. Have no car insured in Ireland running just short of two years and then just before Oct 16 get car insurance again so I wouldn't lose my 50% discount

Or

2. Buy a banger and insure it and suspend the policy the same day. When the policy would come up for renewal the following year I would get the majority back on the premium paid that year and repeat the same for the next year.

As I was moving to USA with no real idea how long I would be gone for I asked hypothetically if I bought a car within the two years and insured it for 3 or 4 months, cancelled it and sold said car would that retain my 50% for a fresh 2 years from then and was told yes. I just didn't bother doing anything at this point so just going to leave it for now and decide what I'll do later whether I buy one and suspend it or just do as they advised and buy one , insure it for a few months and cancel said premium. I know you can get ppl on the other end of the phone who haven't a clue about what they are saying but this lady has worked for FBD for donkeys of years so should be in the know but I definately DO NOT want to lose my 5 years no claims seen as they hammered me for so long as a young male driver

To Elland Back

CiniO wrote: »

I intentionally asked this question to Elland Back, as I actually have direct experience in doing this.

My wife's policy was always suspended for last two months every year, and even though she gained NCB from 0 to 50% over 5 years. Suspension of policy didn't affect NCB.

Due to suspension, she was always getting a refund of about 15% of the premium.


That's why I'm surprised on what Elland Back wrote.
Unless it's different for policies suspended for more than half of policy period or something (which I strongly doubt) I don't think he's right.

You originally wrote that you suspended a policy immediately after inception and let it expire, different thing altogether

goz83

Ah-Watch wrote: »

I was insured with FBD up until October 14 when I sold my car and travelled Oz for a month. I knew I was moving to NY in January so there was no point in renewing which I told FBD straight up- why, where I would be and when. I was given two options.

1. Have no car insured in Ireland running just short of two years and then just before Oct 16 get car insurance again so I wouldn't lose my 50% discount

Or

2. Buy a banger and insure it and suspend the policy the same day. When the policy would come up for renewal the following year I would get the majority back on the premium paid that year and repeat the same for the next year.

As I was moving to USA with no real idea how long I would be gone for I asked hypothetically if I bought a car within the two years and insured it for 3 or 4 months, cancelled it and sold said car would that retain my 50% for a fresh 2 years from then and was told yes. I just didn't bother doing anything at this point so just going to leave it for now and decide what I'll do later whether I buy one and suspend it or just do as they advised and buy one , insure it for a few months and cancel said premium. I know you can get ppl on the other end of the phone who haven't a clue about what they are saying but this lady has worked for FBD for donkeys of years so should be in the know but I definately DO NOT want to lose my 5 years no claims seen as they hammered me for so long as a young male driver

I don't think this is true. The policy needs to run for the full 12 months to retain/gain ncb. Otherwise, you would have jokers buying a policy and cancelling the next day to keep the ncd. When Liberty was Quinn Direct, I was told I would lose my ncd after 2 years, unless i took out a policy before the 2 year anniversary of my expired policy and let that policy run for the year. I would say that the policy is technically running, even if it is suspened, as they don't issue new certs and discs to make up for the suspended period.

Interesting way to earn a second ncd though

CiniO

To Elland Back wrote: »

You originally wrote that you suspended a policy immediately after inception and let it expire, different thing altogether

Why different thing?
So where is the border before which insurer won't issue ncb for a year if policy is suspended?

To Elland Back

CiniO wrote: »

Why different thing?
So where is the border before which insurer won't issue ncb for a year if policy is suspended?

A policy cannot be suspended beyond it's renewal date, so cover needs to be reinstated prior to that.

CiniO

To Elland Back wrote: »

A policy cannot be suspended beyond it's renewal date, so cover needs to be reinstated prior to that.

Your answer is completely not related to question I asked...

Also indeed policy can not be suspended beyond renewal date, but cover doesn't need to be reinstated prior to that. I can stay suspended to the end of the policy.
If you don't choose to renew policy, then it doesn't need to be reinstated at all.

To Elland Back

If you choose not to renew, the original suspension date becomes the cancellation date and now we're back to my original post.

I'm done here

CiniO

To Elland Back wrote: »

If you choose not to renew, the original suspension date becomes the cancellation date and now we're back to my original post.

I'm done here

Looks like you are changing your mind every post...

So let's carry on - what happens if you choose to renew?