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Ask the insurance expert

Can foreign no-claims bonus help in the UK?

Friday, 07 Mar 2008 16:38
A reader from London has a good driving history in New Zealand, but no experience in the UK. She wants to know if this will scupper her chances of getting a good car insurance deal.

Our team of experts at insurance company LV= offers a helping hand.

Natasha from Essex asks:

I have a good driving record and have never had an accident - only I've only driven in New Zealand. Is there a way to get a good deal when I have no history of driving in the UK?

The team at LV= responds:

There are a few steps you can take that will help you get a good deal.

The first thing you should do is exchange your New Zealand driving licence for a UK one.

You can drive on your licence for the first 12 months of residency when you have to exchange for a UK licence, however foreign licence holders are often charged a higher premium than UK licence holders so it's best to do it straightaway.

As you are from New Zealand you don't need to apply for a test, you can just swap your licence. For more information on how you do this go to www.direct.gov.uk.

In terms of your driving history, some insurers will accept foreign no claims discount so it's important to shop around and find someone who does, as you could get up to a 75 per cent discount.

You will need to get your current car insurer in New Zealand to provide you with a letter stating the date of expiry of your previous car insurance policy, your name confirmed as policyholder, the number of years no claims discount you have and your claims history.

If you have a question for LV=, go to the myfinances.co.uk Ask the Expert section.

For more information on the issues discussed here, go to LV=.

Liverpool Victoria Insurance Company Limited is authorised and regulated by the Financial Services Authority and is a member of the Association of British Insurers (ABI).



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