Why would an intro bonus be reduced?
If an intro bonus has been sent in from the customer that is less than what the customer selected/advised and there is no other reason for it (e.g. missing some years from a prior insurer and still need to get that), then we need to amend the driving experience bonus on the risk to match the proof.
- If the PNDE is one to five years and differs from the proof, there will be an additional premium to pay (e.g. client selected/advised four years but their PNDE proof states three years).
- Some insurers may not apply an additional premium for the PNDE being different if it is over five years (e.g. client quoted on seven years PNDE and they only have proof of six) so we can make this mid-term adjustment without an additional premium being applied if that insurer caps their discount at five years (some insurers cap at nine years so there may be an additional premium that needs applied).
- If the customer has sent the PNDE with a break in cover / gaps that are more than 30 days, the insurer will generally not accept this and the intro bonus may need reduced to match the proof that is closest in date without any breaks in cover (e.g. this may only be one year driving experience if there is a gap of a few months to the prior three years driving experience).
Chat Responses
Why are you reducing my driving experience discount?
The insurer needs proof of your driving experience to match the details provided at inception of this insurance policy. As you have not supplied the correct proof to match the details, your driving experience discount needs to be reduced to stay on cover and for the insurance to be valid.
The driving experience you sent through does not match the details provided at inception. We need to reduce your no claims bonus for the cover to stay in place.
Why are you cancelling my policy?
The insurer needs proof of your driving experience as they have applied discount to your price based on this. As you have not supplied the proof of your driving within the required timeframe, your no claims bonus needs to be reduced to 0. Unfortunately, this insurance company does not quote for this and therefore your policy is required to be cancelled.
The insurer only allows discount for introductory bonus that has been active within the last 30 days. As the documentation you sent through is longer than this at the time of inception, the discount is no longer valid and the insurer does not quote for this risk on 0 years.