Two years ago I split up with my wife. She who was the second driver on my car insurance.
I've never had an accident and when we told Swinton, the broker that we bought insurance through, it said I could sign over my nine years' no-claims discount to her, which I did to keep the peace.
However, I now can't afford my own car insurance.
Without the discount, my premiums have rocketed from about £400 to £2,000 a year, which is too much. I have my own business and I need a car to get around.
Are insurers allowed to transfer a no-claims discount to another party?
Steven Jackson, Leigh
When it comes to no-claims discounts or bonuses, there are no hard and fast rules. Each provider can treat them however they want and there is little by way of regulation.
Martyn James, a consumer rights expert from Resolver, the complaints site, said transferring a no-claims bonus to another named driver is not common practice and not every insurer would offer it.
In addition, as there is no "industry standard" when it comes to no-claims discounts it's difficult to regulate.
However, according to the British Insurance Brokers' Association, which works with consumers and brokers, the transferring of the bonus is allowed but only to a husband or wife who is a named driver on the same policy. This would be subject to the insurer's acceptance criteria.
It said Mr Jackson, as the named driver, would be able to accrue his own no claims bonus and sign it over to his wife. However, this would forfeit his right to the discount, as he has found.
A Biba spokesman said if Mr Jackson is still accident and/or claim free, then brokers can negotiate discounts to the same level but not actually reintroduce the no claims discount.
Mr James said: "A no claims discount is something that a driver has personally accrued because they have driven safely and not made any claims. It doesn't make sense to just hand this over to someone else."
Swinton insisted that transferring a no claims bonus is not uncommon and can be done at the discretion of insurers. This could be the case if a policyholder is no longer able to drive, or in the case of death or illness.
A Swinton spokesperson said: “In April 2015, Mr Jackson told us that he wished to transfer the ownership of his vehicle to his wife and asked for the no claims bonus to go in her name.
"He was informed that this course of action meant that he would no longer be able to use the bonus in his own name.
“Transferring no claims bonuses between policyholders is not uncommon and is done at the discretion of individual insurers.”
Swinton said Mr Jackson could ask his ex-wife to transfer the discount back to him, if it still exists. If she agrees, this would reduce the cost of his premium.
It also suggested he explain the situation to any new provider in case they can apply a discretionary discount.
How does a no claims discount work?
The discounts, or bonuses, are applied when policyholders do not make claims for accidents and work on a sliding scale.
By remaining claim free, drivers are deemed less of a risk to the provider. For every year you don't make a claim on your car insurance, the insurance firm may offer you a discount on your premium at renewal.
This can have a significant impact on the price although each insurer will apply the discount differently.
For example, Co-Op Insurance offers drivers a 50pc discount if they have not made a claim in a year. Those who have been accident free in five years will have their premiums slashed by 70pc.
If you make a claim, the insurer can dock your discount by a number of years or wipe it altogether.
Research by MoneySuperMarket, the comparison site, suggested that most insurers will reduce the bonus by two years if a claim is made when policyholders have more than five years' no claims discount.
Biba suggested in some cases it may be worth paying for minor repairs yourself rather than claiming and risking losing your no claims bonus.
If you make a claim and the accident was not your fault, the discount may still be reduced unless your provider can reclaim the costs from the other party's insurer.
