I was thinking of insuring a fictional car (third party only) to accumulate
some NCB as I don't currently have my own vehicle. Any ideas on the cheapest
way of doing this, also is it legal?
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I think you'll find you don't accumulate NCB on a third party policy
I could be wrong, but i dont think so...
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Bora - what Bora ?
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I had a car on TPO and got NCB built up on it.
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Thats a new one on me.I doubt it would work as when the reg/no
is typed into computer it tells you what car it is.so a fictional no/may cause a problem or two.When are you considering buying a car.Even if in a few years time I doubt whether the hasle will be worth it financialy
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I havent had my own car insurance policy for several years, so I don't know the prices of insurance. I thought if I could insure a fictional old banger for £50-£60 a year it might be worth it.
P.S. I'm 38years old, but as you say it's probably not worth it.
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I havent had my own car insurance policy for several years, so I don't know the prices of insurance. I thought if I could insure a fictional old banger for £50-£60 a year it might be worth it. P.S. I'm 38years old, but as you say it's probably not worth it.
Several years ? Last time I managed to get third party insurance for £50-£60 was in the early eighties, Mk3 cortina. I think you'll find that the cheapest you could probably get would be around the £100-£120 mark and if you pay that for 5 years that's £500-£600 which you could've put toward your "real car" insurance initially. I'd save the money and put it tward your 1st real premium.
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I was thinking of insuring a fictional car (third party only) to accumulate some NCB as I don't currently have my own vehicle. Any ideas on the cheapest way of doing this, also is it legal?
I am not a lawyer, but I very much doubt that it is legal.
A no-claims bonus is a financial "reward" (in the form of a lower premium) for having demonstrated that in driving a particular car, you have a record of avoiding claims.
If you weren't driving the car, because it didn't exist, it would seem reasonable to me to classify your actions as "securing pecuniary advantage by deception".
I may be wrong, but if it was me, I wouldn't risk it unless the insurance comnpany OKayed it in writing
-- Claire
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I doubt whether it would be worthwhile. If you really wanted to do this why not get a real car? You can get a car for nothing, and there is no law to say you have to actually use it - just store a worthless car that doesn't go. You can insure a SORNed car.
But there could be circumstances when someone might quite reasonably need insurance not linked to any particular car. What about people who borrow friends' cars, or share cars with neighbours who don't want to risk their no claims?
I once had a policy that simply covered me for 'any car owned by the policyholder'.
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What about people who borrow friends' cars, or share cars with neighbours.I thought and may be wrong you had to let an insurance co know.If you are driving a car not insured by you.ie as you said a friends car.and they charge for changing/adding
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Somewhere along the line when you complete the questionaire to obtain Insurance you will tell them that you own a particular vehicle, this being false. Most likely other porkies may follow.
S 174 (4) RTA 1988
Person who makes false statement or withholds any material information for obtaining the issue of a cert of insurance commits an offence. Fine up to 2,500. (No points).
Looks a no no to me?
DVD
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Two potential offences.
1. The above - if you got found out you may find it difficult to ever get a policy, insurance companies take an instant and often permenant dislike to liars.
2.Obtaining pecunary advantage by deception. Criminal Offence. They'll take your dabs and DNA. Very difficult then to get a job
of any worth. Remember its an offence even to attempt to.
You would fail at the first hurdle, Insurance carry a database of DVLA data in cars.
A very very stupid thing to do.
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I once had a policy that simply covered me for 'any car owned by the policyholder'.
I think you'll find this is called a trader's policy, i.e. intended for someone in the business of buying and selling cars, very expensive (several thousand pounds a year) and not intended for private use.
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You have no insurable interest in a non existant car, therefore you can't insure it.
Chris M
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I doubt it would make much sense at your age but I suppose an 18 year old could benefit from buying a scraper Fiat Panda for fifty quid and then just leaving it on the drive whilst accumulating his first couple of years NCB?
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So what happens if you work abroad? My best friend's dad went to work in Singapore for a few years. When he came back, his insurance co said as he hadn't had a car or insurance for 3 years, all his previously accrued NCB were now void and he had to start from scratch again. So it would appear that there are times when it may pay to have insurance on someone else's car (or a fictional car) to ensure that your NCB is preserved.
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So what happens if you work abroad? My best friend's dad went to work in Singapore for a few years. When he came back, his insurance co said as he hadn't had a car or insurance for 3 years, all his previously accrued NCB were now void and he had to start from scratch again. So it would appear that there are times when it may pay to have insurance on someone else's car (or a fictional car) to ensure that your NCB is preserved.
It may pay, but if it's not legal, there might be some pay-back :(
However, is there really a risk of losing *all* the NCD? My experience is that you don't need to start at zero.
When I bought my first car (still on a provisional license), I got a 35% NCD straight off.
After that car went to the crusher, I had no car for over 3 years, and then got a 35% NCD again when I took out a policy on my new car.
Maybe I'm just lucky, or get special terms for being so cute
Claire
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Would scooter insurance count? If so, that may be a cheaper option.
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You have no insurable interest in a non existant car, therefore you can't insure it.
But as we are reminded by insurance gurus whenever this kind of question comes up, in law it is the driver that is insured, not the car.
The requirement is for the driver to be insured against possible claims from third parties. The fact that you may reduce the risk of a claim to zero (eg by not driving)doesn't remove your right to obtain that insurance just in case.
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Sorry to disappoint Cliff, but Chris M is right - it is a fundamental principle of insurance law that you must be able to show an insurable interest. If you cannot then the insurer may come to the conclusion that there was an attempt to mislead and promptly declare the policy void - and then in future you will have to answer 'Yes' to the question 'Have you ever been declined insurance or had a policy cancelled?' which may prove to be a lot more trouble than it's worth.
CG
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Sorry to disappoint Cliff, but Chris M is right - it is a fundamental principle of insurance law that you must be able to show an insurable interest.
Yes, I accept that. But the insurable interest is only partly derived from ownership of the car - it also arises because of the risk of incuring a liability to 3rd parties by virtue of driving, the car in question or any car.
If my insurance permits me to drive another car, with its owner's permission, then what is my insurable interest? It cannot be for the car itself, because the cover may well only be 3rd party.It is simply to cover my own actions as a driver.
It may in practice be difficult or impossible to obtain the sort of insurance proposed, but I cannot see in principle why it should be inadmissible. I may not own a car, but I might want to be able to drive friend's cars without putting their own insurance at risk.
Lots of life's risks are insurable, but they don't necessarily depend on ownership of something physical. I can take out personal liability insurance to cover the risk of a claim from someone I might accidentally trip up in the street. Or not?
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Would only be worth it if you bought an absolute wreck of a car which you could obtain a very limited milleage classic policy for. Eg morris minor that has so much rust it might snap if you sat in it, on a 1k a year policy.
sounds like a non starter to me tho. If your older the cost would outweigh the benfit. and if you are a younger driver it oten would too- as i have found NCD, doesn't make that much difference to the price of my policy. I think the only way it would be worth while was if you were young, and you wanted to insure a very high risk car at the end.
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Would only be worth it if you bought an absolute wreck of a car which you could obtain a very limited milleage classic policy for. Eg morris minor that has so much rust it might snap if you sat in it, on a 1k a year policy.
sounds like a non starter to me tho. If your older the cost would outweigh the benfit. and if you are a younger driver it oten would too- as i have found NCD, doesn't make that much difference to the price of my policy. I think the only way it would be worth while was if you were young, and you wanted to insure a very high risk car at the end.
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It wouldn't work with a classic policy - they don't give NCDs.
There is no difficulty obtaining a 'running' car for nothing. It costs up to £60 to scrap a car. Just tell the owner to bring it round to your house instead. You could even get paid a few quid too!
Store the car on your drive for 5 years and then buy the Ferrari.
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Condition 1 of my policy reads "You must do all you reasonably can to prevent loss or damage to your car AND TO MAINTAIN IT IN A ROADWORTHY CONDITION" - unlikely if it's sitting on your drivway for 5 years!
Chris M
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Condition 1 of my policy reads "You must do all you reasonably can to prevent loss or damage to your car AND TO MAINTAIN IT IN A ROADWORTHY CONDITION" - unlikely if it's sitting on your drivway for 5 years!
This is all getting a bit theoretical, and IMO not actually worth doing, but I can't resist persuing it just for the fun of it.
Actually I have often kept spare cars , in roadworthy condition, for years. (not actually insuring them, true)
I kept a Series 111 LandRover in running order for use off-road for 10 years. I kept my Triumph Stag for 5 years in the garage. I started it occasionaly, gave it a bit of a run-around, and finally took it down for an MOT and sold it.
Before registering and taxing my tractor (now its free!) I kept and used it in full running order for 20 years.
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Cliff are you sure re classic car policy and ncd. I only ask as a friend of mine drove a 1968 morris minor 1000 as his first car for a few years. then insured a modern car, and his insurers were happy to give him a no claims discount.
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You may well be right in particular cases. I just know that on taking out a classic policy it is a flat premium - they don't give further discounts from previous policies.
I think insurance companies may vary in how they treat good driving records, and often go beyond the strict NCD. eg spouse driving on partner's insurance for years, then transfers it to own name.
What I meant was, as rule, you don't get a renewal note on a classic policy saying 'basic premium less X NCD'. The discount is already built into the kind of car, kind of driver, possibly restricted mileage option.
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