What is a no claims bonus?

[Uneripty]

Against all odds, our ageing Poogeot 307 miraculously passed its MOT today, leading us to navigate the complex process of auto insurance renewal.

The ownership and insurance of the Poogeot is in the wife's name, as shown on the V5 document. I have always been listed as a named driver.
The wife has another car on which she has accumulated a No Claims Discount (NCD) for a period exceeding 9 years.

Currently, while utilising online quotation platforms for the new Poogeot insurance, I am inputting a value of `0` for the No Claims Discount (NCD) amount. This is because I understand that NCD entitlement can only be used to one car at a time, and my wife is already using it for her other vehicle.

Insurers determine the accuracy of your No Claims Discount (NCD) by accessing a database or accident records shared among insurers. This allows them to identify any discrepancies or irregularities in your NCD record, rather than solely relying on the information provided by you over the phone or through an online form.

There is no malicious or fraudulent activity happening here, I am only raising a question that arose during a chat today.

[Maidaser]

They may request evidence from a prior insurance provider.

[HolyRoach]

+1

[Squirrrel]

Is it not the case that you get a no-claims discount on every policy? If you have two automobiles insured under different policies, you should be eligible for a No Claims Discount (NCD) on each policy. Under what circumstances should your wife possess a minimum of one year's worth of her previous policy?

[CleverPixel]

NCD, or No Claims Discount, is accumulated on a per-policy basis. If your wife is the primary policyholder for both the Peugeot and the second car, she will accrue No Claims Discount (NCD) for both vehicles. The policies are independent of each other, thus making a claim on one insurance will not impact the No Claims Discount (NCD) on the other policy. However, it is possible that the premium may increase due to the change in the driver's accident or claim history.

The NCD entitlement is a shared resource among insurance companies via the MIB (Motor Insurers' Bureau, formerly known as the MID - Motor Insurance Database) to avoid fraudulent activities such as attempting to utilise the NCD from an existing policy with another company to get coverage for an additional car.

[AmericaMonster]

Enquire with your insurance provider about the possibility of them replicating the No Claims Discount from the other vehicle. Upon changing insurers, your earned No Claims reduction (NCD) will only reflect the number of years you have accumulated up to that point. For instance, if you have 2 years NCD at the time of switching, you would be paying premiums as if you had 11+ years NCD. However, if you maintain the same insurer, you will get a reduction on your premium equivalent to having 9+ years NCD on this automobile.

[Ziinsig]

I am unable to recall the most recent occasion when I was required to engage in such task. It seems that they possess mutual access to evidence supporting the existence of No Claims Bonus (NCB), in my opinion.

[Tactical]

As mentioned earlier, this arrangement is mutually agreed upon by the firms, however participation is optional and some companies may choose not to join. In such cases, you will be required to submit proof of your No Claims Discount (NCD) from your former insurance provider.

[Uneripty]

I have been registering zero no claims since I am declaring myself as the primary driver and policy holder in order to establish my own No Claims Discount (NCD).

I will need to verify the accumulated No Claims Discount (NCD) on each policy. However, this information will not be beneficial if I choose to insure under my own name.

There seems to be further work that needs to be done. I really like obtaining insurance estimates.

[AmericaMonster]

Certain insurers may provide you with a No Claims Discount (NCD) if you are listed as a named driver on another insurance policy.

[Notef]

Non-communicable disease (NCD) is a phenomenon, especially if you can communicate with an insurance provider who then comprehends that it is impossible for you to be ubiquitous and drive both automobiles simultaneously.

Potentially, spouses....

[Liveek]

At what point did the phenomenon commence?
The probability of encountering inaccurate data is significantly increased when certain events occur, such as acquiring a new vehicle, modifying the car registration number, altering one's name due to marriage or legal name change, or registering several automobiles at distinct locations.

In the past, around fifteen to twenty years ago, it was necessary for us to contact the prior insurance providers in order to verify a client's No Claims Bonus (NCB). If we were unable to confirm this information over the phone, we would then request the policy holder to produce written evidence of their NCB.
A few years ago, we modified the procedure to conduct NCB confirmation on just a portion of policies, with the aim of reducing the need for human resources and cutting expenses.

[Tactical]

The inclusion of NCD is uncertain, however, the original MID has existed for a considerable period and serves as the primary source for the Police to verify insurance information.

[Tactical]

https://www.mib.org.uk/

[Captiva]

It began occurring more than a decade ago. However, originally, the reason for this was due to the insurance group at the core exchanging information.

If you maintain the same insurer or switch between insurers within different groups, you would not see any change.

Its prevalence has increased since then.

It is malevolent. However, I believe that the whole credit rating system and its foundations are more malevolent. Stringent and severe regulation is necessary, however politicians and a significant portion of the people seem unconcerned.

[AmericaMonster]

What does the act of exchanging important and valued information, such as No Claims Discount and claims history, between insurers seem suspicious or malicious?

Is it not logical to take measures to avoid fraud and deception? Undoubtedly, it is advantageous for both the majority of clients and the insurance.