Protected No Claims

tigger2

Not realy got my head around this? Is it worth paying the extra for?

If I had a claim and at the end of the year wanted to move to another company. Could I take all of my no claims bonus with me because I had protected it.

Or would I have to stay with the same company because that is where the protection was from. If this is the case is it not just a way of tying you in?

If you don,t take protected no claims out do you lose all claim free years in one stroke? With any company?

tigger2

I assume no one can answer this question just bring it up again in case?

Thanks

Kinnairdy

Q: If I had a claim and at the end of the year wanted to move to another company. Could I take all of my no claims bonus with me because I had protected it.
Having Protected our NCD for many years it has been our experience the the Full NCD entitlement is transferred to any new Insurer however the "Protected" part cannot be transferred, it is merely selected as an option with each Insurer. It is usual for an Insurer to place an "accident allowance limit", ie, up to 5 claims in 3 years, on claim No 6 within the 3 year period the NCD would be reduced by a percentage of the total entitlement, for example if you had 8 years NCD and were unfortunate enough to have 6 accidents within 3 years your NCD may be reduced to 6 or 7 years NCD.

Q: Or would I have to stay with the same company because that is where the protection was from. If this is the case is it not just a way of tying you in?
No you do not have to stay with the company that issues the Protected NCD, all companies offer this service, with each change of Insurer you have the option to Protect your existing NCD entitlement.

Q: If you don,t take protected no claims out do you lose all claim free years in one stroke? With any company?
No you would not loose all your NCD in one fell swoop but the total accrued would be reduced by a percentage decided upon by your Insurer. If for example you had 80% NCD an accident may reduce that figure to 70% or more, each Insurer has different criteria for allocating entitlement of NCD, Protected or not. Hope this helps in answering your questions, this response is based upon personal experience only. Insurers can provide full details, make a list of questions and phone around

Victorian_Broker

I personally think it's not worth paying extra for protected no claims.

If you make a claim whilst you have protected no claims bonus, you'd still have to declare you'd claimed when you renew, the insurer would then crank up the premium whether you have no claims bonus or not.

lisyloo

I think "more than" say they won't put your premium up but I'd have to check the wording.
I thought the wording implied that you wouldn't get loaded in this way.

i.e. they didn't offer no to maintain your discount, it specifically said they wouldn't increase your premium.

I'd have to check the exact wording to be sure but that's the way I read it.

celtus

I have transferred my protected no claims bonus to a different insurer on many occasions without any problems. I do however think £39.90 for the privilege is a bit steep (Lloyds TSB ), but i think its worth it for the piece of mind it gives me, as starting from scratch again would be so expensive.

On a different note the renewal on my car insurance was due very soon, so yesterday i used confused.com to find the best price, then phoned Lloyds TSB and asked what they could do for me ragarding the price...they beat confused.com's price to keep me. ...its worth a try, you've nothing to lose

Greensprout

It depends on your circumstances.

It's well worth it for me..

I'm 23 with 5 years no claims..
I drive a group 18 car and without if I wasn't protected and were to make a claim I wouldn't be able to afford to insure the car come renewal time.