Ex-company car insurance
Drive a company car? If it’s insured by your employer, you could find your claim-free years don’t count towards your no-claims discount. Here’s how to make sure you benefit from a spotless driving history.
Drive a company car? If it’s insured by your employer, you could find your claim-free years don’t count towards your no-claims discount. Here’s how to make sure you benefit from a spotless driving history.
Car insurance for ex-company car drivers
If your job comes with a car, you could find you’re at a disadvantage when it comes to car insurance.
This is because driving a company car may prevent you building up your personal no-claims discount. When you eventually come to insure your own car again, it could mean you’re landed with expensive quotes.
But don’t worry, there are still ways to keep down the cost of car insurance, especially if you have a long driving history and haven’t made any recent claims.
Ask if your insurance provider will accept claim-free driving
If you were the only driver of your company car, some insurance providers will offer you a discount for your years of claim-free driving. It’s not strictly a no-claims discount but could still lead to savings.
This may be an option if you had your own company car that you used outside of work. If you used a shared pool of cars for work-related travel, you probably won’t be eligible.
To prove claim-free driving, the insurance provider who covered your company car will need to confirm:
- That you had sole use of the car for domestic and pleasure, as well as business and commuting.
- How many years of claim-free driving you’ve had.
Some providers will want to know the date you stopped using your company car (it needs to be fairly recently), and that you’re the new car’s registered keeper and owner.
Top tipAn insurance provider who’s willing to accept your past NCD might not necessarily offer the cheapest policy or right level of cover. That’s why you should always shop around and compare car insurance quotes. |
Could the no claims discount on an old policy still be valid?
If you had a no-claims bonus on a car insurance policy before taking up a company car, many insurance providers will still consider it valid if you take out new insurance within two years. If it’s been longer than two years, the NCD probably won’t count.
But each insurance provider sets its own time limit, with some allowing gaps of up to three years, so it’s worth checking.
Bear in mind that your no claims bonus is counted in complete years, from when you took out your policy to its renewal date. If you had a policy for six months then cancelled it to take up a company car, those six months won’t count towards your no claims discount, even if you didn’t claim.
How can I get cheaper ex-company car insurance?
A no-claims bonus (or lack of one) isn’t the only thing to affect the cost of your car insurance. Other factors include your age, job, address and the type of car you drive.
But you can help cut the cost of your car insurance by:
- Choosing a car in a lower insurance group – it may not have the powerful engine you’re used to, but it could mean paying less for insurance.
- Cutting down on your annual mileage – the less time you spend on the road, the lower your risk of an accident.
- Paying a higher voluntary excess – just make sure you can afford to pay it if you need to claim.
- Paying annually – you often have to pay interest on monthly payments.
Frequently asked questions
Do I get car insurance from my employer if I have a company car?
Many company car schemes offer the additional benefit of their own insurance. You’ll just need to make sure it covers you for personal use – check with your employer to be sure.
If you opt out of the company car insurance scheme in return for a ‘car allowance’, you’ll need to insure the car in your own name. This means you should be able to keep your no claims discount.
If I claim on my company car insurance, will it affect my personal no claims discount?
Any claim you make on your company car insurance policy shouldn’t affect your personal no-claims bonus. But you’ll still need to report any claims to your own insurance provider – who may increase your premium as a result.
Will previous driving convictions affect the cost of my car insurance?
Any driving convictions you receive while driving your company car could mean paying more for your personal car insurance, even if the company car was insured through your employer. You may also find your choice of insurance provider is limited.
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