Boring insurance question

[johnny boy]

Sorry to be so boring on a Friday afternoon chaps but I wonder whether anyone could comment on whether it's worth taking no-claims protection on insurance policies

For instance, Direct Line want to charge me £250 to protect my 7 years NCB but, surely, if I had a claim, they would whack the premiums up anyway.

Anybody had any experience of this?

Regards

John

[MattC]

I think I know the answer to this one, which did puzzle me for a while...

Yes, if you make a claim, your premium goes up. If you have UN-protected NCD, you will lose it AS WELL AS the "base premium" hike.

So say you've got 50% NCD and make a claim:
- IF unprotected, you premium goes up by some "1-accident" modifier, as determined by the InsCo. They then take your NCD away, effectively DOUBLING your premium. So your renewal might jump from, say 400 squid to 1000 (400+100 doubled).
- IF PROTECTED, they add the modifier, premium goes upto 500 quid. End of story (until you make your next claim...).

Hope this makes sense!

Basically, it SEEMS like you're being ripped off yet again. But in reality, it's sort of fair.

[oh drat, I've just realised this is a crap example, as you wouldn't lose the WHOLE of your 50%, but never mind, it's nearly right...]

[tvrmark]

I was paying £600 with protected NCB (so I thought).

I had a claim. On renewal it went up to £1200.

The broker told me I did not have protected NCD. I looked through my paperwork, but the broker had never sent me my schedule so I didn't have anything to prove my case. Until I found my orginal cover note stating protected NCD.

It turned out the broker told me one thing and gave different info to the insurance company to keep my premium down and my custom (by mistake).

Luckly the insurance company agreed to give me back my NCB and put it in writing and reduced the premium to £1100 (they didn't want my custom). But it allowed me to go to a different company for £800( I had run out of time to shop around.

The following year I got it down to £600 and this time I had a schedule.

The moral of the story is Protected NCD is worth it and make sure you have your schedule.

Sorry to be so boring, I know I should be doing something more interesting on a Friday night, but I am giving my live a chance before Christmas (and my birthday next week).

Mark

[JSG]

With protected no claims your premium shouldn't increase with a claim (although it is likely the premium will go up year on year).

My wife's car has prot no claims and she has had 2 claims (both minor) in the past 3 years but the premium hasn't shot up. In addition they still gave 65% NCB at renewal - without protection the NCB drops to 40% with the first claim and then has to build back up.

250 extra seems high though, I just renewed the Cherokee and protected NCB was 18 quid more (with 6 years NCB). I was also offered guaranteed NCB (dearer) which doesn't limit the number of claims you can make in a 3 year period, with protected I think if you make more than 3 you then lose your bonus as usual.

[nevpugh308]

I agree ... if you've got NCB protection, it shouldn't go up if you've only had one accident (several accidents might be viewed differently, of course).

Sadly, I know this for a fact .... in Feb this year I had a claim on my daily driver (early in morning, not awake, skidded on ice on a country corner, went sideways into a field .... oh crap, oh well, first fault accident in 16 years ...)

I've got protected NCB, I've just renewed my premium and it went DOWN from last year !!! (albeit only 20 quid, but hey, I'm not complaining ...) (oh, and nothing else changed, same car, same house etc)