What is the reason to have no-claim bonus protected if insurer will ask about claims?

Rolandtheroadie

If you have an accident you are a greater risk so every insurer in the country will want more money than they would have if you didnt have that claim.
Therefore your premium goes up.
If you dont have protected NCB, you will also lose a percentage from that as well.

Say your premium is £1000. 65% NCB means it costs £350. You have an accident, premium goes up by say 15 % because your a higher risk. Thats now £1150. Take off 65% leaves £402.50.
Assume you have not got a protected NCD and your claim causes this to drop to 50%. You now have £1150 (policy now higher due to claim) minus 50% (new NCD due to claim) is £575.
So protecting your NCD would have saved you £172.50.
All figures are guestimates just to show why I protect my NCB and dont think it's a con.

JonBoy_SCFC

dacouch wrote: »

If you had lost your no claims discount due to claims very few companies would give you an introductory discount as this is normally subject to you fitting certain criteria including having no claims. I can't therefore see where you get that companies give a discount for zero ncd as in this example it does not work.

When your at work tommorow (Or do it now online) get a quote for an average client paying around £250 with protected bonus and then get the same quote with protected bonus and one fault claim. There wont be much difference in the premium probably about £20

all that would show me is how much you have to pay for protection - i know that is very small. i'm not surprised either because it's not actually worth anything!

the real comparison i need to make is one quote with NCD=5 and claim in last year vs NCD=3 with claim in last year, and i would think they'd be very similar i.e. they load your NCD=5 quote with respect to the claim, bringing it back in line with NCD=3 quote, meaning you don't benefit from having it protected. I tried this in the past on a comparison website and that's what i saw.

Of course i cannot test this with companies renewal rates because they're not very open about that (but don't get me started on another con!);)

dacouch

Scotsman4th I wish I could explain things in such an easy way instead of waffling on like I do

JonBoy_SCFC

scotsman4th wrote: »

If you have an accident you are a greater risk so every insurer in the country will want more money than they would have if you didnt have that claim.
Therefore your premium goes up.
If you dont have protected NCB, you will also lose a percentage from that as well.

Say your premium is £1000. 65% NCB means it costs £350. You have an accident, premium goes up by say 15 % because your a higher risk. Thats now £1150. Take off 65% leaves £402.50.
Assume you have not got a protected NCD and your claim causes this to drop to 50%. You now have £1150 (policy now higher due to claim) minus 50% (new NCD due to claim) is £575.
So protecting your NCD would have saved you £172.50.
All figures are guestimates just to show why I protect my NCB and dont think it's a con.

that only works on the assumption that the claims loading is the same for all levels of NCD (i would agree with you if that were the case). I suspect the loading for claims i more at NCD=5 than it is at NCD=3, which is where the con comes in ...

Rolandtheroadie

Can you protect less than full NCD? I never protected mine until it was full although it may have coincided with going fully comp.

dacouch

erm Jon there is a big difference in premium between the two examples you are quoting eg maximum ncd and 3 years. To understand it check outs Scotsman4th's example as this makes it clear.

Like I said in earlier post people buy protected no claims bonus as peace of mind (Insurance against their no claims discount if you like) and it can genuinely save you money as well as allowing you to put in a claim for a small knock such as someone knocking your £300 electric wing mirror off and driving off.

If you want real evidence it can save you money Scotsman4th pays for it and I'm assuming he is Scottish and we all know they are wise with their money (I hope that was tactfull enough Scotsman4th

dacouch

You can protect less than maximum ncd commonly from three years onwards but very few companies offer it as they want to see you have a good driving record by achieving maximum no claims bonus before they offer it

JonBoy_SCFC

dacouch wrote: »

erm Jon there is a big difference in premium between the two examples you are quoting eg maximum ncd and 3 years. To understand it check outs Scotsman4th's example as this makes it clear.

Like I said in earlier post people buy protected no claims bonus as peace of mind (Insurance against their no claims discount if you like) and it can genuinely save you money as well as allowing you to put in a claim for a small knock such as someone knocking your £300 electric wing mirror off and driving off.

If you want real evidence it can save you money Scotsman4th pays for it and I'm assuming he is Scottish and we all know they are wise with their money (I hope that was tactfull enough Scotsman4th

i guess we have to agree to disagree then! i'm certainly not paying for something that i don't believe will keep my premium down if i make a claim!

what about the con that is the "50% NCD discount" and my analogy with M&S - what you think of that?

Rolandtheroadie

dacouch wrote: »

If you want real evidence it can save you money Scotsman4th pays for it and I'm assuming he is Scottish and we all know they are wise with their money (I hope that was tactfull enough Scotsman4th

It sure is.

JonBoy_SCFC

plus i repeat Scotmans example only works if the claim increase is 15% for both levels of NCD

I believe the claims loading is much more at a higher level of NCD - say it was 50% at high NCD and only 5% at low NCD, then scotmans example could read like this:

Say your premium is £1000. 65% NCB means it costs £350. You have an accident, premium goes up by say 50% because your a higher risk. Thats now £1500. Take off 65% leaves £525.00.
Assume you have not got a protected NCD and your claim causes this to drop to 5%. You now have £1050 (policy now higher due to claim) minus 50% (new NCD due to claim) is £525.00
So protecting your NCD would have saved you nothing!

might seem a bit extreme but these insurers are quiote clever and maybe not exactly but this is the kind of thing they do! (in my opinion of course)