Car insurance - No claims bonus point on scale

[Clamball]

I have a query about the no claims bonus discount

I am renewing my daughter’s car insurance. The renewal paperwork say

Point on no claim bonus scale: 4 year discount
No claim discount applied: -55%
Number of years in respect of which no claim has been made against the policy: 2 years

And then they have a table with details of claims on this policy

Collision
2023
€600 claim value

My daughter was in a fender bender, side swiped from rear. The other car accepted liability when the guards came but later claimed against the policy saying my daughter was at fault. The insurance company sent an assessor and after investigation and visiting the site of the collision said the other side conceded liability but would pay no claim my daughter made against them. Since all it was on her car was a dent she had not planned to make a claim. We did however get an email from her insurance company saying the cost was €600 and we could pay that to the insurance company if we liked. We paid nothing.

So I am just trying to understand what the 2 years with no claim and the 4 years no claim discount mean?

They also say “Please note that the number of years claim free indicated above may not match the stage on our no claims bonus scale marked above. This may arise where your policy has a protected no claims bonus arrangement in place.”

She does not have a no claims bonus protection on her policy.

What would I put on a renewal with another insurance company? 2 years or 4 years? To the best of my understanding the insurance company paid no claim to the other car and did not pay out anything to my daughter either. So is the claim there because the other party put in a claim and is the €600 the administrative cost?

I find the language so confusing.

 

[ClubMan]

So I am just trying to understand what the 2 years with no claim and the 4 years no claim discount mean?

Did she have NCB insurance on her policy that night explain this? I.e. there was a claim against her policy 2 years ago but NCB insurance keeps her NCB at 4 years?

Edit: oh, just noticed that they actually state this themselves...

They also say “Please note that the number of years claim free indicated above may not match the stage on our no claims bonus scale marked above. This may arise where your policy has a protected no claims bonus arrangement in place.”

What would I put on a renewal with another insurance company? 2 years or 4 years?

When asked if there were previous claims then she must tell them that there was one 2 years ago. Her NCB certificate from her current insurer should state what her NCB is in years and that's what a new insurer will go by when working out the NCB discount.

 

[ClubMan]

The insurance company sent an assessor and after investigation and visiting the site of the collision said the other side conceded liability but would pay no claim my daughter made against them.

This is confusing. Did both your daughter and the other party make a claim? Against her policy? Against their policy?

 

[Clamball]

Thanks Clubman, the other party made a claim against my daughter’s policy but conceded they were liable themselves pretty quickly and dropped the claim.

My daughter made no claim. The other party also said that while they conceded liability and were dropping the claim they would deny liability if my daughter raised a claim. That is what I meant by they would pay no claim if my daughter raised a claim against them. The whole negotiation was done by the assessor.

She did not have a no claims bonus protection on her insurance.

 

[Clamball]

When asked if there were previous claims then she must tell them that there was one 2 years ago. Her NCB certificate from her current insurer should state what her NCB is in years and that's what a new insurer will go by when working out the NCB discount

So if a party makes a claim against your car insurance and then drops the claim you still need to tell another insurer?

 

[ClubMan]

So if a party makes a claim against your car insurance and then drops the claim you still need to tell another insurer?

That's my understanding. A claim was initiated even if it was subsequently dropped.

I don't understand how, in this case, the NCB number of years is 4 if there was a claim 2 years ago and there was no NCB protection (which usually or always only works if you stay with the same insurer and doesn't avoid the base premium being inflated due to previous claims before the NCB discount is applied).

You should clarify the situation with the insurer and/or a broker maybe.

 

[Clamball]

Thanks Clubman. I did another bit of delving and I am wondering now if I am wrong in what I posted originally.

I explained what the assessor had agreed with the other insurance company but that was all verbal discussions. The email from the insurance company said

Claim closed.

And then “We would like to advise you that this claim has been settled for €600 which includes all legal and associated costs”

So I am now thinking that the claim progressed and was paid out by our insurance company.

 

[Corola]

We did however get an email from her insurance company saying the cost was €600 and we could pay that to the insurance company if we liked. We paid nothing.

The other party claimed €600 against your insurer. They offered for you to settle it privately, which you didn't do, so your insurer paid the claim.

 

[Corola]

What would I put on a renewal with another insurance company? 2 years or 4 years?

It will be two separate questions in the application form:

1) What NCB discount have you earned? 4 years

2) Have you had any claims or accidents in the last 5 years regardless of blame? Yes, one claim for €600 in 2023