Car insurance, legal rip off on renewal???

dhaughton

I had 8 years no claim discount on my policy with the AA and no claims protection. I had had a renewal quote BEFORE i made a claim, the increase was about 5% or so. I then made a claim and it did not affect my no claims bonus.
When i then received the quote for renewal the cost had risen by 30%!!! When i asked them why they said that although i had retained my no claims bonus i had been assessed as a higher risk. Why?
Because i had made a claim!!!
Surely the risk factors are still the same??

This simply sounds like a way of getting round the no claims bonus protector.
I ended up going to another insurer who quoted half the premium and with better cover, the RAC!!!!!

LandyAndy

You went from being someone whose history showed no claims in a given period to someone with one claim in a given period. That makes you look like a higher risk.

The bonus protector is not a 'no change in premium even with a changed risk' guarantee.

Glad to hear you found a better deal elsewhere.

CHR15

The No Claims Protection simply preserves your discount percentage.

Make a claim and your premium goes up... but it is still 60% less than it would have been without no claims protection.

dhaughton

hi, the insurance company have risk factors and that must take in to account all factors. the fact you have not had an accident in a period gives you a discount on the premium.
but the risk factors are still the same surely. the fact you have an accident does not increase or decrease the risk factors in my view.
maybe they should be more specific in saying how the risk factor is worked out and how it affects the premium
i have to say that the RAC do not operate the premium in that way, i asked them.
what is the industry standard and how does the frequency of claim affect the premium.
I have just been on another site to enquire re premium and renewal and said i had no no claims on the form and i got a price. i then rang them up and said that i got the form wrong, i had not put in my 8 years no claims. they then gave me a corrected price based on the original quote lees the no claims percebtage. they said i was insured for claiming and they dont load the premium if you have a claim, you simply lose the no claims bonus unless you insure that.
Yet they did agree that some companies do increase the pre bonus premium.

losgiganteskid

Yep, a guaranteed NCD or protected NCB is just that - you retain your NCB in the event of a claim. Premiums can increase and often do even when you have paid extra to preserve your bonus

raskazz

The product is called protected no claims discount and that it what is has done. The premium to which the discount is applied has increased because clearly someone who has been involved in a recent claim is a higher risk than someone who is otherwise identical but has not been involved in a claim.

There is no 'industry standard' - different firms will have different underwriting structures.

Your example of what you did on another site is not a relevant comparison - the relevant comparison is to enter your details without the claim and then enter your details with the claim.