How does insurance work?

[poker_999]

my friend drove his car in to someone else at the super market, he dented the bumper and popped a bit of trim out. Surprisingly to popular belief not everyone drove off and he left his details on the owners wind screen.

He has (had probably) 1 years ncb and was half way through year 2 so say about 18 months worth.

If they claim and he looses his ncb when does his new ncb start accumulating? From the date the claim was paid? If so that puts his renewal part way through his year with the current insurer and they will probably charge a silly amount.

So would he be better cancelling his insurance and taking out a new policy with somebody else now? (well after this incident has been delt with)

 

[rodenal]

He will start building again from the policy renewal date - he is most likely better staying with the current insurer as they won't put the premium up until renewal time whereas going to another insurer would mean the extra premium would be payable as of the start date of the new policy.

If cancelled it's likely the current insurer would charge for the full years policy too in the even of an accident.

 

[sanofi]

It's it's not too bad, maybe he can try settling privately?

 

[AndrewNR]

It's it's not too bad, maybe he can try settling privately?

Depends on a number of factors which you have not mentioned.

Your mate's insurance premium.
Your mate's excess.
Your mate's cost to fix the vehicles involved etc.

He will start building again from the policy renewal date - he is most likely better staying with the current insurer as they won't put the premium up until renewal time whereas going to another insurer would mean the extra premium would be payable as of the start date of the new policy.

If cancelled it's likely the current insurer would charge for the full years policy too in the even of an accident.

This is the answer.

Basically if the cost is less than <£1000 to get fixed I'd perhaps get your mate to settle outside of the insurance, as otherwise he'll lose his NCB, have a declared accident on his insurance and have to pay £500(?) excess?
£500 excess + extra %'s on an insurance premium soon mounts up.

 

[lord filbuster]

You don't pay excess for third party claims, only if you claim against damage to your own car.

 

[poker_999]

ok he has spoke to his insurance provider and they say he can pay his insurance company back what they payout and still have his 2 years ncb.

does this sound right?

 

[DogsBody]

well if the insurance company told him that then yes.
the clue is really in the title "no claims bonus"
you get a discount or "bonus" on your insurance renewal for not claiming.
If he pays back the insurance company, technically he has not claimed off his insurance to cover the cost of the repair

 

[poker_999]

but he has had an accident

so is probably seen as being at risk of having another accident

and maybe the next accident will kill 10 people and he cant afford to pay the insurance company back.


just seems really odd to me that that he can "pay them back" and keep his ncb

 

[DogsBody]

As I said the clue is in the name.
He does however have to state in the future when he takes out insurance that he has had an accident and not claimed. (most websites include this now)

 

[SGWills]

yea still need to advise other insurance companies of the incident.
the NCB would go to two years because there has been no claim where his insurance company have paid out for