Why do I lose my no claims discount after 2 years abroad?

Question

I had 7 years no claims built up, lived overseas for 2 years, and my insurance company say I've lost all my no claims discount even though I was running a car in this time.
Does anyone know a way around this or a company that will retain my discount.

Answer 1

I work in insurance so let's see.

Basically if you haven't had insurance for two years, an insurance company is likely to go "Uhhh... why?" and not give you any NCD. There's often a reason why someone went that long without insurance that makes them a higher risk (they were banned but secretly haven't disclosed it, they trashed their last car and have only just been able to afford a new one, I'm sure you can use your imagination). Higher risk drivers mean an insurance company is less likely to want to give them discounts.

Conversely many insurance companies don't accept foreign no claims bonus because a lot of other countries operate differently when it comes to insurance, so while a Colombian insurance firm might think they're a great risk, they might not be quite up to British standards.

Certainly the above two above points apply where I work. So take that for what it's worth. Your best bet is to find an insurance brokers who will search around for the best quote for you (the £20 in brokers fees you pay could save you £100 in insurance premiums, in theory) and they should be able to find a company who'll give you a good deal.

Answer 2

Most insurance companies stipulate as a requirement that your no claim bonus must have been earned in the last 2 years to be valid.

However, there are insurers that will consider honouring no claim bonus that is older than this dependant on the individual and the individual circumstances.

There is no point talking to an insurance company direct as typically you will NOT be speaking to someone with authority to take your circumstances into consideration.

In situations like these you are always better to speak to an insurance broker who can explain your needs to a number of insurance companies on your behalf and, as such, is likely to get a result for you.

Please contact us on 01420 82501.

Answer 3

A
I assume you wre insured with a company in the country you were living in. I would think that the problem is that you are try to get a discount based on evidence that you have not made an insurance claim but while the UK insurance can check that claim in the UK they probably cant check it overseas so they have no evidence to go on.

Answer 4

NCD only lasts for two years, some companies 3 years. If you haven't held a UK based insurance for 2 or 3 years, then your NCD no longer applies. Some companies will give you an re-introductory discount though.

Answer 5

You lose your no claims if you don't have UK insurance for 2 years. This is because a) they can't track if you have claims in other countries and b) if you haven't been driving for a while then your driving will be worse and you're more likely to make a claim.

Answer 6

In my experience I've learned that part of your, "no claims" includes no lapse of insurance.Even if you had insurance in another country that's not recognized in the US, therefore it would appear in the insurance index that there was a lapse of insurance. Most companies would rerate you at a better rate in about 6 months. Good luck!

Answer 7

The standard rules are that the bonus is lost after two years, personally i would try it on and write a very polite letter to the Chief executive, explaining the reasons why and giving him evidence that you have lived abroad.