No Claims Bonus

AA Insurance identified that some customers may not have not received, or may have been delayed in receiving, their No Claims Bonus benefit.

Making it right

We have now put processes in place to make sure that all eligible AA Insurance customers who qualified for the No Claims Bonus benefit in the past retain the benefit today, regardless of the number of claims made. We have also updated all active AA Insurance policies where the No Claims Bonus benefit was not applied correctly. We apologise to all our customers who may be affected by this error and we want to reassure them that AA Insurance is committed to making things right.

We'll be in touch

We want to make things as easy as possible for our customers and we will be making efforts to contact all current and former customers who have been affected by this error. Customers can expect to hear from us by letter, email or text. We aim to provide further information and arrange refunds, including compensation, for eligible customers in the next three months. Customers can also review their insurance policy documents or log in to My AA Insurance and download their documents to check whether their No Claims Bonus has been applied.

More information about the No Claims Bonus benefit error

If you want more detail or have any questions that are not answered below, please don’t hesitate to contact our dedicated team on 0800 080 841, they’re available 8am - 5pm Monday to Friday.

I have received a letter, email or text asking me to complete a form. Is this a scam?

This is not a scam. AA Insurance identified that some eligible customers may not have had their No Claims Bonus benefit applied correctly. We are now putting processes in place to make sure that all eligible AA Insurance customers who qualified for the No Claims Bonus benefit in the past have retained the benefit today, regardless of the number of claims made.

We are contacting eligible customers who have been affected, and will be updating their AA Insurance policies if their benefit was not applied correctly.

Customers can expect to hear from us over the coming months via letter, email and/or text.

More detail can be found here or if you have any questions, please don’t hesitate to contact our dedicated Discount team on 0800 080 841, they’re available 8am - 5pm Monday to Friday.

What is the No Claims Bonus benefit error?

A gap in our system enabled an issue to arise in how the No Claims Bonus benefit was applied to customer policies. Because of this, customers may have seen their premium increase as a direct result of making a claim, when they should have been protected by their No Claims Bonus.

We are committed to doing the right thing and are contacting eligible customers who have been affected. We will be updating their AA Insurance policies, backdating the benefit and issuing any applicable refund for policies that may not have had the benefit applied correctly. All other premium considerations are not included and your premium may increase over time for other reasons.

What is the process for refunding customers affected by the No Claims Bonus benefit error?

At this stage there is nothing customers need to do. If we have your payment details you will receive a refund, if we don’t, we’ll contact you. We are committed to making things right for all affected customers. We aim to provide further information and arrange refunds, including compensation, for eligible customers in the next three months.

What if I have multiple Comprehensive Car Insurance policies with AA Insurance that may have been affected by the No Claims Bonus benefit error?

We’re checking all other AA Insurance Comprehensive Car Insurance policies to see if you were entitled to this same benefit. If this is the case, you will receive a separate letter and refund payment for each eligible policy you hold or have previously held with us.

We aim to provide further information and arrange refunds, including compensation, for eligible customers via letter, email and/or text within the next three months. If you think you should have received this benefit on another policy you hold with us and have not heard from us within that time, please contact us.

Will I get a refund if I am impacted by the No Claims Bonus benefit error?

We will be providing information and arranging refunds, including compensation, in the coming months for existing and previous eligible customers.

It’s important to note that not all affected customers will have been financially impacted or receive a refund. In some cases, a customer might not have had the benefit applied correctly to their policy, however, depending on claims made during this period, they may not have been financially impacted.

We will aim to contact impacted customers who may be eligible over the next three months. We will be contacting customers via letter, email and/or text.

If you would like more detail or have any questions, please don’t hesitate to contact our dedicated Discount team on 0800 080 841, they’re available 8am - 5pm Monday to Friday.

What if I'm no longer a customer but had a No Claims Bonus benefit when I was?

AA Insurance does not currently offer the No Claims Bonus benefit to new customers or on new policies. However, some existing customers who qualified on or before 26 September 2015 and have remained active up until today, have retained the old benefit we previously offered.

If you previously held a Comprehensive Car Insurance policy and had a No Claims Bonus benefit, cancelled your policy and did not replace it within 30 days, you will no longer be eligible for this benefit.

Please refer to our full No Claims Bonus benefit terms and conditions for all terms, exclusions, limitations and conditions that apply to this benefit.

What is the compensation I’ve received for the No Claims Bonus benefit error? How has it been calculated?

We understand customers may be frustrated as a result of seeing their premium increase as a direct result of making a claim, when they should have been protected by their No Claims Bonus benefit. As a result, we have included compensation for affected customers.

Compensation has been calculated using the rolling average of the six-month term deposit rates, as provided by the RBNZ, with an additional 0.15% as per the Interest on Money Claims Act 2016. This means that compensation is driven by two factors, the total refund amount and how long ago your eligible policy was impacted.

When will I receive a refund if I am affected by the No Claims Bonus benefit error?

Customers affected by the No Claims Bonus benefit error can expect to hear from us via letter, email and/or text. We aim to provide further information and arrange refunds, including compensation, for eligible customers in the next three months. More information can be found here.

Does AA Insurance have any customer remediation work happening at the moment?

Yes. AA Insurance identified that some customers may not have not received, or may have been delayed in receiving their No Claims Bonus benefit. We want to make things as easy as possible for our customers and we will be making efforts to contact all customers who have been affected by this error.

Customers can expect to hear from us via letter, email and/or text. We aim to provide further information and arrange refunds, including compensation, for eligible customers in the next three months. More information can be found here.

About the benefit

How do I find out if I am currently receiving a No Claims Bonus?

The No Claims Bonus benefit is shown on the third page of your policy documentation (including at renewal). You’ll see it on the first page of your policy schedule under the ‘About your vehicle’ section of your policy schedule.

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If you are still unsure whether a No Claims Bonus benefit has been correctly applied, please contact us. Remember to have your policy number ready.

What is the No Claims Bonus benefit?

The No Claims Bonus benefit prevents a premium increase as a direct result of making a claim on a Comprehensive Car Insurance policy, regardless of claims made. All other premium considerations are not included. AA Insurance no longer offers this benefit to new customers or on new policies.

Do I lose my No Claims Bonus if I make a claim?

AA Insurance does not currently offer the No Claims Bonus benefit to new customers or on new policies. However, some existing customers have retained the old benefit we previously offered.

If you currently have a No Claims Bonus benefit, you will not lose it when making a claim, even if your car is involved in a total loss. When insuring your replacement car, you will need to tell us your cancelled policy number or let us know that you previously held a No Claims Bonus benefit within 30 days.

If you cancel your policy, but later decide to reinsure with AA Insurance under a Comprehensive Car Insurance policy, it must be within 30 days to continue receiving this benefit.

Please refer to our full No Claims Bonus benefit terms and conditions for all terms, exclusions, limitations and conditions that apply to this benefit.

Will I lose my No Claims Bonus benefit if I cancel my insurance?

AA Insurance does not currently offer No Claims Bonus benefits to new customers or on new policies. However, some existing customers have retained the old benefit we previously offered.

If you currently have a No Claims Bonus benefit and cancel your eligible policy to replace it with a new eligible policy within 30 days, you will retain the benefit. If you cancel your policy, but later decide to reinsure with AA Insurance under a Comprehensive Car Insurance policy, it must be within 30 days to continue receiving this benefit.

Please refer to our full No Claims Bonus benefit terms and conditions for all terms, exclusions, limitations and conditions that apply to this benefit.

How do I know if I’m eligible for a No Claims Bonus?

AA Insurance does not offer No Claims Bonus benefits to new customers or on new policies. However, some existing customers have retained the old benefit we previously offered.

A No Claims Bonus benefit is available on Comprehensive Car Insurance policies which qualified for the ‘Guaranteed No Claims Bonus for Life’ benefit on or before 26 September 2015 and have remained active up until today.

Please refer to our full No Claims Bonus benefit terms and conditions for all terms, exclusions, limitations and conditions that apply to this benefit.