Insurance - NCD Ripoff?

[TravisBickle]

This is a bit complicated but I'll try to keep it as brief as possible.

I had an MT10 insured with AA (insurance renewal due May with 4 years NCD).

I also had a CB500 previously insured with Bennetts (insurance expired March with 2 NCD).

The two sets of NCD were earned from completely different policies running side-by-side. At no point have I attempted to use the same NCDs earned from the same policy on multiple bikes.

I then sold the MT10 and bought a new Multistrada in March, around about the same time the policy on the CB500 expired.

AA would not let me transfer my soon-to-become 4 years NCD policy to the new Multistrada (a common ripoff stunt pulled by insurance companies) so rather than cancel that policy on the MT10 and lose the 10 months out of 12 I had accumulated towards the 4th year's NCD, I instead decided to swap the vehicle on the policy to the CB500 (whose insurance policy had just expired) to see out the remaining 2 months so that I could earn that 4th year NCD.

I then took the 2 years NCD from the original CB500 Bennetts policy, and took out a new TPTF policy as cheaply as possible with Lexham for the new Multistrada, with the intention of cancelling it after 2 months, when the old MT10 (now CB500) AA policy comes to fruition of 4 years NCD, and start a fresh policy on the new Multistrada with the newly acquired 4 years NCD.

I knew I'd take a hit on cancellation charges but I thought it would be worth the financial hit in the long run (and also worth the risk having a £30k bike insured TPFT for 2 months) to get the 4th year NCD in 2 months time rather than setting me back to square one with a new policy with 3 years NCD.

I cancelled the 2 years NCD TPFT Multistrada Lexham policy in May and immediately took out another policy with Lexham (this time fully comp) but used (or so I thought) the 4 years NCD from the just-expired MT10/CB500 AA policy.

Lexham kindly did not charge me the cancellation fee on the old policy because the new policy I took out was with them as well, I assume the refund I got was just pro-rata for the 10 months I hadn't used.

However, after sending off my 4 years MT10/CB500 AA proof of NCD (renewal document from AA stating 4 years NCD on the CB500) to Lexham through their online portal, I got this email:

Thank you for your email.

I have looked into your previous policy that you had with us LIC/MC/XXXXXXX and that had been set up with 2 years no claims bonus that you sent in proof of from Bennetts, that we accepted onto that policy. As this policy was cancelled we can look to use this for your new policy.

I have quoted to reduce the no claims bonus down to the 2 years we have proof of, which you will find attached to this email.

We cannot accept the renewal quote from the AA as it is for a different vehicle registration. If you have the 4 years no claims bonus available to use from the AA, please contact them and ask for your official no claims bonus proof and send this into us.

If you have any questions, please do not hesitate to contact us on 01379 646 504 and press option 6.

This was accompanied by a letter attached by PDF kindly telling me to pay them an additional £390.38 for the adjustment.

Am I wrong or is this complete nonsense? I've never heard of NCD being locked in to specific vehicles before! Apart from which, BOTH sets of NCD are for the same bloody bike anyway (the old CB500)!

Are they pulling a fast one or is this actually a thing that NCD can only be carried over to the same vehicle? Surely not!
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2007 Yamaha FZ1 S Fazer
2021 Honda CMX500 Rebel S
2016 Triumph Tiger 1050 Sport

[Easy-X]

I don't understand what you mean when you say the AA wouldn't let you transfer the NCD from the MT10 to the Multistrada. You have a policy with the AA with 4 years NCD that just so happens to have the MT10 as the principle vehicle. You would amend the policy to the new vehicle and pay an admin fee and some pro-rata difference but unless the underwriter has a pathological hatred of Ducatis then I would suggest you were talking to a moron at the other end of the phone.

I've never heard of this being a "common stunt" for a policy that's part way through. Granted it can get complicated when a policy isn't renewed and you let some time go by before taking out a new policy.

As to proving the NCD it'd probably be easier to take out a policy for the CB500 which you can prove was the last vehicle on the AA policy and then after you're sure the policy is correctly in place amend the policy with the Multistrada details. Not saying it'll be either the cheapest or most efficient way to get it done but it requires less arguing with "computer says no" eejits.
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Husqvarna Vitpilen 401, Yamaha XSR700, Honda Rebel, Yamaha DT175, Suzuki SV650 (loan) Fazer 600, Keeway Superlight 125, 50cc turd scooter

[TravisBickle]

[MCN]

Where do you get different NCD for different bike policies?

Your NCD is yours.
If you have 6 years NCD you have 6 years NCD.

It doesn't matter when you bought the policy or for what bike.

If you claim it will/can affect future policies for any vehicle.

Underwriters do not discriminate between NCD on bikes/cars.
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Disclaimer: The comments above may be predicted text and not necessarily the opinion of MCN.

[TravisBickle]

[Easy-X]

That makes more sense. You have a policy with a front man (the AA) but they farm the work out to underwriters. A particular underwriter has a particular appetite for risk which might not include your new bike. This is the way insurance has... well "worked" isn't the right word... existed in this country for a fair while. I suppose the fault lies in the underlying financial instrument which is a year long contract. What insurance needs is a dynamic entrant on the market selling 30 day rolling contacts (to take a leaf out of the mobile phone game.)

Anyoo, as to two bikes costing vastly differing amounts. From my recent experience the Duke 390 would have cost me at least £100 per year more to insure than my Vitpilen 401. An XSR 700 is cheaper to insure than an MT07 and so on. Sorry, that's statistics! Red cars have more crashes than green cars

Finally, AFAIK the NCD is applied on a policy by policy basis. Lexham not accepting proof of NCD 'cos it was for a different bike is just dumb. Either you've made a claim in the last 4 years or you haven't; whether you were "not claiming" on a Honda or Ducati is neither here nor there. You may have to resort to calling them to wrangle this. I would suggest meditating first before making the attempt
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Husqvarna Vitpilen 401, Yamaha XSR700, Honda Rebel, Yamaha DT175, Suzuki SV650 (loan) Fazer 600, Keeway Superlight 125, 50cc turd scooter

[Pete.]

[Fat Angry Scotsman]

[TravisBickle]

<SMUGMODE>

https://youtu.be/NqSYhcUoocg?si=FvDLWxt_7X5LWDRr

</SMUGMODE>
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2007 Yamaha FZ1 S Fazer
2021 Honda CMX500 Rebel S
2016 Triumph Tiger 1050 Sport

[BRUN]

[grr666]

I have van NCD (12 years) bike NCD (9 years) and car NCD (20+ years) all on separate policies. This is the way.
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Currently enjoying products from Ford, Mazda and Yamaha
Ste wrote: Avatars are fine, it's signatures that need turning off.

[struan80]

[grr666]

[MCN]

OK I'll put it another way.

If you have a claim you MUST notify the insurance company you want to buy insurance from.

They 'can' load the policy to offset they're possible increased risk.

That's is wot I was on about.

I had five vehicles on the road at one point. They all suffered the benefit of increased premiums coz someone had collected two awards for speeding.
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Disclaimer: The comments above may be predicted text and not necessarily the opinion of MCN.

[TravisBickle]

For anyone still interested - it seems I finally got some sense out of Lexham after speaking with them on the phone earlier.

Despite me replying to their last email pointing out the ridiculous nature of them refusing my 4 years NCD because it's for a different vehicle registration, but then accepting my other set of NCD (2 years) which is also for the same registration as the 4 years NCD they were rejecting - they completely ignored this and instead yesterday sent me a lovely email saying my policy would be cancelled on 25th September.

I called them up and someone was able to explain to me (not made clear on any previous correspondence) that, while a renewal proposal from previous insurer is usually acceptable, because it was for a different bike to the one I have insured with Lexham, they need proof that my old policy was not renewed with my previous insurer and therefore my 4 years NCD being used on multiple policies.

So in short - I needed a proof of NCD from AA (confirming that the policy had expired and not been renewed), which AA did not send to me at the time.

I've since got that very expeditiously from AA and forwarded that on to Lexham.

I assume that's now the end of the matter.

So just a reminder to anyone this may affect in the future - a renewal proposal from previous insurer is no good if the vehicle has changed on the new policy and you are also moving to a different insurance company (you need a proper proof on NCD from previous insurer). A scenario I imagine is not that uncommon as many people wait until the end of a policy to buy/insure a new bike to save being raped by mid-term adjustments.
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2007 Yamaha FZ1 S Fazer
2021 Honda CMX500 Rebel S
2016 Triumph Tiger 1050 Sport

[t121anf]

Two things.

1 - don't assume it's the end of it, get it confirmed, if they cancel the policy you'll have to declare yes to the "have you ever had a policy cancelled" question

2 - why would it be a renewal, you've changed something, in this the bike, it's always going to be a new policy.

Glad it's sorted, followed with some interest as I'm thinking of a 2nd car which would be 2 parallel polices.

[TravisBickle]