What happens to your NCB when you no longer have a car?

[Shazza36]

I have earned 9 years No Claims Bonus but I'm now giving my car to my son and he's starting his own insurance on it.I will still be driving as I am a named driver on 4 policies but what will happen to the NCB I have built up if I don't take out insurance for a year, I'm wondering if me and my husband should take it in turns each year to be insured on his car which we both use, any ideas?

[Buenchico]

Most insurers will allow you to retain your no claims discount for up to two years.

So, theoretically, your plan to insure your car in different names (on alternate years) is a sound one.

However insurers are always watching out for cases of illegal 'fronting', whereby (in order to save money) the person who actually drives the car most is only a 'named driver' on someone else's policy.

While you might not actually be engaging in 'fronting' it's likely that swapping the main policy holder backwards and forwards could lead to such suspicions, with the insurer refusing to pay out on any claim you may make (other than as required to do so by law).

That could result, for example, in you paying for 'fully comp' cover but finding that the insurer would only pay out at the 'third party' level.

Chris

[ABerrant]

It is usual for insurers to accept proof of NCD having laid dormant for up to 2 years, however individual companies may have their own rules.

[Shazza36]

Think I may end up just letting it lapse and hope I never need my own car again, I only got my own car and insurance to teach my boys to drive so that my husbands no claims wouldn't be affected should they have needed to claim-thanks.

[EDDIE51]

As has been said you can retain your NCB for 2 years.
I did not have my own insurance for 6 years as I was a driver on my company's policy , but when I got my own policy again they gave me 30% NCB as an 'experienced driver' . Also, most insurance policys allow named drivers to earn NCB anyway so as you are continuing to drive as a named driver there is no point in getting your own insurance.

[Shazza36]

Thanks EDDIE51 I imagine I probably won't be needing it again, and tabathzig never have tried to get one over on the insurance companies, I've paid out £1200 each year to my insurance company for the last 4 years. Even if we swapped the insurance between us each year we still wouldn't be trying to get one over on the insurance company as we both drive my husbands car equally now i no longer have a car, it wouldn't make any difference to the insurance company as we would probably pay about the same premium as each other now the kids are not on this insurance policy.