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NSW Newbie insurance questions (No Claim Bonus)

Discussion in 'Politics, Laws, Government & Insurance' started by mogley, Feb 17, 2012.

  1. Hi all,

    I've got a few questions on insurance, did a search but couldn't find much, just lots of stories about people getting into accidents. :(

    1. Does my car NCB transfer/apply on my bike or is it separate?

    2. What is my NCB? :) I know this is a silly question, i've had comprehensive insurance on my car for a few years only and then changed to fleet insurance provided by my company but underwritten by Allianz (as such I never got renewal policies etc, just salary deductions). I haven't made any claims since.

    Should i ring up Allianz?

  2. In answer to your questions:

    1. Sometimes. It depends on the insurer, some will give you credit, others won't. It will depend largely on your age, years of driving experience, and years of motorbike license.

    2. An NCB or "No Claim Bonus" refers to a discount you receive on your insurance premium. Rating 6 = 0% discount
    Rating 1 = 50, 55, 60 or 65% NCB depending on your insurer (most use 65%)

    For every year you have a full comprehensive policy, and you don't make any AT FAULT claims in that year, your rating reduces for the following year. If you make an AT FAULT claim, you lose 2 ratings on the renewal. Strictly speaking, you don't have an NCB or earn any ratings if you have Third Party Only cover, or Third Party Fire & Theft. However, I do know of 1 insurer who will give rating 1 based on age/license years, not on any NCB earned.

    Example. Suzy is rating 3, she had a full comp policy for 12 months without a claim, the next year she is rating 2, thus earning a greater discount.

    Example 2 - John is rating 3, he hits a car in the rear, he is at fault. Next year, he is rating 5, thus earning a lesser discount.

    If you have held rating 1 for 12 months without an AT FAULT claim, your insurer will most likely offer you NCB protection, meaning you can have 1 AT FAULT claim per year without losing your rating 1. You can also pay extra to protect your rating 1 if you wish.

    Your fleet policy through work won't have an NCB.

    My advice? Approach a number of insurers (you can search for a thread which lists the common ones like Western QBE, AAMI, Insure my ride etc.) and give them your details and get them to quote. You will find they will all quote many different premiums and offer your different NCB's, as they all use different rating factors.
    • Like Like x 1
  3. The above is pretty much on the dot... however there are a few variables.

    Not all insurers will drop 2 ratings in the event of an "At Fault" claim, some may only drop one.

    Also, a protected no claim bonus can be bought with some insurers, with others it can take up to 3 years "at fault" claim free before it is offered.

    The term "at fault" has been put in inverted commas because At Fault can also include non-recoverable claims such as theft and weather events where your insurer has no one from whom their losses can be recouped
  4. I just bought full comp insurance on my bike in the last 2 weeks - it had third party of course but until i knew what i was doing to it and the cost (as i wanted cover on my mods, since they are legal) then i didnt want to purchase insurance that was unsuitable for the bike.
    Im using RACQ on the car, and actually hadnt had comprehensive insurance on a vehicle before (under my name vs a business name), but with 8 years driving and 2 years riding with no claims or fines etc i qualified for a Rating 1 straight up.
    Swann who i went with for the bike, after i spoke with them on the phone wanting a bit of a better customised insurance solution than i could set up online, recognised that Rating 1 and gave me the NCB there too.
  5. Exactly, if you're not some pimply faced teenager with no driving history and have had a clean run, most will exercise some discretionary judgement
  6. Cheers all for your responses, very helpful.

    So when i select my NCB status, how do you say qualify for Rating 1 as above if this is in the discretion of the insurer? Or do i need to actually ring up?

    I have checked my insurance history via a database held by Veda (who i presume insurers also use as part of their investigative process should they query a claim) and received a nil result. ie no insurance history.

    I was subsequently told by Veda that this is a good outcome as I have no claims history.

    I'm just a bit confused by the statement above because when I first got insurance on first car several years back I had to "earn" my NCB from scratch as I had no history.

    I'm just assuming I am a Rating 6 now as I have only held fleet insurance since then. Which is a bummer.
  7. Best bet is to call them and ask if you qualify, based on your record/history. I never had any paperwork stating the reasons why i qualified, except after i filled in the information with RACQ online quote system i 'automatically qualified'. In a subsequent phone call returning $42 to me, RACQ confirmed that i qualified by phone.
    Swann simply recognised that i have an existing rating 1 comprehensive insurance cover with RACQ.