My car was stolen -- will claim make me loose my NCB?

Question

Hello, I've been with elephant.co.uk for two years and have never made a claim (2 years NBC).

On 01/01/2007 my car was stolen, found but has been written off by my insurance company; obviously I've made a claim, being fully comprehensive.

The problem I'm finding, is that I'm 24 and looking to buy a Mitsubishi Fto GPX 1998cc, now, if I have my two years NBC then although expensive, it's feasable for me to insure -- however if I have lost my NBC due to this theft claim, then the insurance quotes I'm getting for this vehicle are just stupid.

I've read into the website FAQs on elephant.co.uk, and it states the following:

"In the event of a theft claim your no claims discount will be reduced, as it is unlikely we will locate the culprits and recover the costs."

What does this mean, reduced? Am I likely to loose all of my two years NCB or will they just reduce it to a year, or similar?

Thank you.

Looking at the answers so far, is there some kind of option for me to pay a fee, when making the claim, to keep my no claims bonus? as when I originally signed-up for the policy, 'no-claims-protection' wasn't around.

Answer 1

OK yes you will loose any no claim bonus accrued normally over the last two years

That said if the stolen vehicle has a higher value than that of the increased insurance costs for a vehicle of that same insurance costing and you make the claim and are paid out in full. NCB gone

However you do have the right not to make a claim or to pay the claim back. If the stolen vehicle value is lower than the future insurance policy cost it would pay you to consider this oprion. Paying the claim back would then restore your bonus and you can continue with the new car

Insurance companies are reluctant to tell you about this one as it potentially looses them money

Answer 2

No claims protection usually is only offered when you have more than 2 years no claims, and then it will either be stepped back after a claim, so if you had 3yrs NCB and claimed the following renewal you would have 1 left. Some companies do offer, for a higher premium full no claims protection but then only to policy holders who they see as low risk, i.e. with extended NCB. I doubt you could get this protection retrospectivelyby paying now, since they know you are claiming. You might be better of talking to a broker, since although you will lose you NCB it is through no fault of your own, you didn;t cause an accident, no-one is claiming against you, indeed some companies may exempt theft from affecting your NCB.
For youngish drivers insuring unusual cars I'd recomend FootmanJames here http://www.footmanjames.co.uk

Answer 3

If the car has been written off by your insurance company, than have they paid you any claim amount? The aim of insurance is that in the event of a loss the insured person should have the benefit that he enjoyed before the person suffered the loss.

I am an insurance adviser based in India, I don't know if the same principals apply in the UK as they do in India.

Life's Lovely! Love & Live Life!

Answer 4

Sorry to tell you this but you will loose ALL your no claims discount.

Anytime you make a claim you loose your NCB unless the insurance company can recover the money from the person who stole the car which is unlikely.

Try confused.com for a quote - my wife had two accidents in two years but got a great deal.

Answer 5

Unless you have a protected NCB, it will be reduced or eliminated due to your claim. Sorry, but that's just the way that the system works. It reads like classic British understatement -- "reduced" here means "eliminated".

Your only option to cut your insurance costs is to look for something that is cheaper to insure. That "boy racer" Mitsu is going to be costly.

Answer 6

Read the small print, all policies are different, sometimes you lose 1 years No claim, others both years, if you have not been completely straight with the compny you may even be required to pay an extra surcharge

Answer 7

Sorry you Will lose it, I had a claim and was on (protected no claims) when I next renewed my insurance.I was asked if I had any claims and said no because I believed my no claims were protected I was told off for not declaring it and had to pay an extra £45 ,,,,,,,,,Yes you wiil lose it.

Answer 8

It sounds like you will be restarted at zero credit even though the claim was valid. It also sounds like your insurance company is a worse set of SOBs than mine, which is quite an achievement for them).

Answer 9

I know its a bit late but you should have bought protected no claims bonus,thats the price you pay unfortunatly.

Answer 10

you possibly will lose them , why didnt you get them protected another £20-£30 ,it would be worth looking into next time