Loss of No Claims - 2 yrs becomes 5 years!

[airbolt]

Prior to a minor accident ( my fault ) this year , I had 8 years no-claims. I was told that I would lose 2 years of this by my insurance co ( heres a clue - they are more OH NO than OH yes )

Renewal of Insurance came around and i was told that " the insurance industry" always takes the no-claims back to 5 years then deducts 2 years.

Is the latter true?

[kempie]

5 years is the maximum NCD that can be accumulated. Once you have passed 5 years, even if you do not claim for 20 years, the NCD remains at its (5 year) maximum level (60% to 70-odd% depending on provider).

[Oneeyedvic]

Some companies (NIG) only attribute a maximum of 4 years - so when I had a crash (despite having 10 years worth of clean driving), I went back to 2 years.

Sadly, none of this is explained before a crash happens.

Maybe the FSA could actually do something useful for a change and standardise it!