No claims discount frustration!

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Sun 18 May 2025 10:21
No claims discount frustration! - lagsey182

Hi all,

I wanted to get some honest feedback from people who actually care about cars and insurance.

I’ve been working on an alternative to the usual no claims bonus system. The idea is simple:

Instead of getting a percentage off your premium (which often gets wiped out after one small claim), you’d earn a cash fund for each claim free year. This fund would build up over time and get paid out to you after a few years, or when you switch insurers.
It would be held independently (not by the insurer) so it's actually yours. There would obviously be a choice of investment strategies from conservative to as aggressive as people want.

Genuinely curious:

  • Would this interest you over a traditional NCD?

Thanks for reading.

Edited by lagsey182 on 18/05/2025 at 10:36

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Sun 18 May 2025 10:47
No claims discount frustration! - Orb>>.

Much better would be the system elsewhere.

The vehicle is insured.. third party not the driver.

Then if you want to add fully comprehensive there are increased for younger drivers.

I can go to Europe and drive my friends cars .

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Sun 18 May 2025 10:56
No claims discount frustration! - Gerry Sanderson

............in which case the Insurance Company would be paying YOU money. No they are there to make money out of you

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Sun 18 May 2025 11:13
No claims discount frustration! - Adampr

The premium would need to be more to build up the fund. Nobody would be interested. You'd be better of just putting the additional money into savings.

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Sun 18 May 2025 16:20
No claims discount frustration! - Terry W

Safe drivers with no claims are a lower risk and are charged less.

It is dressed up as a "no claim discount" to encourage the idea that it is a reward for safe driving and not making a claim. It is illusory like many discounts - it all depends where the "normal" price is set.

Your proposition is that we should all pay the same as an 18 year old and get a rebate which is then invested Not a good idea:

  • "safe" drivers would not want to pay possibly 3-5 times their current premium and be forced to accept that the extra paid sits in an investment account
  • there would be a whole load of admin and regulation to support such a system - what are acceptable investments, what about fraud, who manages the fund, when can you get it out, what if investment value falls etc etc
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