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Ex-company car insurance

Ex-company car insurance

Even if you’re a superb driver who never puts a foot wrong, some insurance providers won’t count your claim-free years as NCD (no claims discount) if you’ve been driving a company car. Here’s how to make your driving history count. 

Daniel Hutson
From the Motor team
minute read
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Posted 6 NOVEMBER 2019

Car insurance for ex-company car drivers

When it comes to car insurance, those who’ve been driving company cars can be at a disadvantage. From an insurance provider’s perspective, if you’ve had use of a vehicle through your job you won’t have built up any personal no claims discount.

That can result in expensive quotes when you eventually come to insure your own car again. But don’t worry, there may still be ways to keep the cost down, especially if you have a long driving history and haven’t made any recent claims.

See if your insurance provider will accept claim-free driving

If you were the only person using 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 it could lead to savings.

This option may be open to you if you had your ‘own’ company car, which 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
  • the number of years of claim-free driving you’ve had

Some providers will also 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.

Could you have valid NCD from old policies?

If you can prove you were the sole user of the company car and had social use of it too, some providers may take your NCD into account. You might also be asked to prove the date you stopped using the car, as well as your claims history.

If you’ve had a break in your no-claims bonus of two years or less, many providers will still consider it valid. With a longer gap, your NCD won’t count in your favour because it was too long ago.

The time limit varies between providers, with some allowing lengthier gaps of up to three years. So, it’s worth checking with a potential insurance provider. You might be pleasantly surprised.

Bear in mind that NCD is always counted in complete years: from when you took out an annual policy to when it was due for renewal. So if you had a policy for six months, then cancelled it to take up a company car, the time you were privately covered won’t count towards your NCD – even if you didn’t claim.

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