Norwich Union Direct

A car insurance review, I bet your excited already I know I am. Nevertheless, I thought I would share my experience of Norwich Union Direct and let you Johnny Consumer know what is good and bad about this particular company.

For those, like me, who struggle with the terminology I have included a guide to insurers lingo at the end of my review.

Norwich Union Direct is the largest insurance company in Britain and the group it belongs to Aviva is the fifth largest insurance group in the world. As such if nothing else you can be fairly sure they won't go bankrupt before you need to make a claim!

Norwich Union provides all kinds of insurance from accidental death, homes and contents and car insurance. There car insurance claims to be, "Flexible enough to meet your individual needs".

Let us talk about my experiences with them. Firstly, I have been insured with them for seven years man and boy, 17 to 26. Setting up my original insurance was surprisingly easy over the phone on a freephone number but took over half an hour. They ask what seem to be standard questions for all insurers including: personal details, car make and model, engine size, whether the car has any alarm and whether it will be parked on the road, garage or driveway. All these things and more determine what your premium will be.

Now being 17 and living in what can only be described as a high crime area my premium on a 1.0 Fiat Panda (how I loved that car!) was quoted at £800 for third party, fire and theft. At the time this was cheaper than any of its competitors (trust me I rang them all).

So, all good then?
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Indeed it is so far. My cover note arrived the very next day and wahey, I was insured. Two years go by and no problems whatsoever as I have no need to contact with them and renewal is automatic. The payments become lower due to increasing no claims discount so all is good.

However, one winter morning driving to work, an oncoming vehicle driving over the white line clips my car. Both myself and the other party report this to our respective insurers yet but two weeks later I receive a later from their Solicitor suing for damages, loss of earnings and various other things I cannot even pretend to understand.

On contacting Norwich Union (after being on hold for twenty minutes (and listening to pan piped Greensleeves!) I was assured all was in hand and to send the Solicitors letter to them, they would take care of it. As there were no witnesses and we both dispute the claims it would be a 50/50 claim.

Two months later I receive a later from Norwich Union explaining the other parties’ insurers had won full compensation and I immediately lost my two years no claims bonus. After several phone calls, and being left on hold for twenty minutes each time which by the way are not free once you are a customer, I was told there was nothing that could be done but perhaps I should have been contacted sooner.

Writing it off as a bad experience (no pun intended), I continued my insurance with Norwich Union simply because the thought of transferring to another company bewildered me. Back then I was not the cocky so and so I am today and simply took it as my lot. I even half convinced myself it was my fault due to my inexperience.

Five years later I am still insured with Norwich Union. There quotes are competitive and they continue to be prompt delivering my new documents and any changes that have occurred to my insurance cover.

However, as I have already mentioned there customer services are poor and more recently they have developed a nasty habit of transferring you to various different departments for the simplest of matters such as changing your address. They have also developed a tendency of trying to add on to your premium whenever you call attempting to pressure the perhaps more naive into breakdown, no claims protection and even life insurance.

On the positive side the additional cover options can be beneficial. I have additional breakdown cover as part of my quote, which for the mechanically inept such as myself is handy. Breakdown cover is provided through Green Flag who are contacted through Norwich Union. Luckily, this IS a freephone number and there is no "on-hold". When I have used them they have always been prompt and efficient.

Other additional cover options include no claims protection, European breakdown and Personal accident insurance in case you have an injury whilst driving.

As with all insurance companies there is a 10% discount on your quote if you apply via form online. Quotes seem much easier to obtain and hassle free compared to the "hard sell" of a phone quote.

A nice addition to Norwich Union's policies is the addition of a Rapid Bonus for Young Drivers scheme which provides fully comprehensive motor insurance that provide a full years no claims bonus in 9 months for young drivers between 19-29 (yeah me I am still a young driver!). In effect in a five-year period you would receive full no claims discount 15 months earlier!

However, as with all such things there is a catch and this is that the excess if a claim is necessary is high at up to £570.

Continuing in what seems to be, there support for younger drivers those who complete the Pass-Plus test are immediately awarded one year’s no claims bonus.

So, all in all not a bad company with low premiums and a good deal for younger drivers. However, the customer service is terrible, as is their representation of customers who have been involved in an accident.

And as promised for people like me here is a layman's guide to insurance terminology.

Premium?
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The annual amount for your car insurance. This amount is split into twelve monthly payments usually made by direct debit i.e. a premium of £1200 would require twelve payments of £120.

Claim?
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If your car is damaged as a result of a crash you can claim for damages and may be awarded a cash sum to cover car repair, loss of earnings or trauma.

No claims bonus/discount?
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Awarded yearly when you do not make a claim. This reduces your insurance premium dramatically. Full no claims bonus is usually received after five years and can entitle you to reductions of up to 75%.

No claims protection?
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An additional premium which covers you and your car for a set amount of accidents (in Norwich Union's case two). If you have an accident you will not lose your no claims bonus no matter who is responsible.

50/50?
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Nothing to do with Who Wants to be a Millionaire this means that when an accident between two parties occur both sets of insurers lay equal blame on the drivers involved. Although both are compensated, both usually lose their no claims bonus.

Fully comprehensive?
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This cover provides insurance for all eventualities. If you crash and it is your fault you can still claim from your insurers.

Third party, fire and theft?
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Covers legal fees incurred in the event of a crash and also covers fire damage and re-imburses the driver in the event of theft (to the value estimated by the insurer).

Pass-Plus?
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A six month course taken generally by younger or inexperienced drivers which covers motorway driving, night driving and driving in treacherous conditions. Can reduce insurance premiums by up to 20%