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Is no claim protection worth the money?
delluver
Posts: 568 Forumite
Hi all,
Is it worth paying out for no claims protection. I have heard several people say that if you have to make a claim that your premium will still increase anyway?
Is it worth paying out for no claims protection. I have heard several people say that if you have to make a claim that your premium will still increase anyway?
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Comments
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The money you pay each year is effectively a combination of a base premium and your no claims discount.
No claims discount protection will prevent your NCD discount being affected by an at fault claim (subject to its limits) but does not prevent the base premium from going up.
So in a "typical" example - someone with 4 years NCD getting a 60% discount on a £500 base premium and a paid premium of £200. If the base went up to £1000 due to an accident then if the NCD was not protected they would have gone down to 2 years NCD which is a 40% discount. There new premium would therefore be £600 -v- someone with protected paying £400 so a difference of £200 in additional premium. Still an increase but not as much.
Is it worth it? Well only you can truly answer that query. It is effectively an insurance on your NCD and so do you want to pay a fix price now to ensure your premium doesnt go up as much or save money today but possibly cost yourself a lot more in the future if you have a couple of unlucky claims (remembering hit and run, theft, fire etc count as fault claims)All posts made are simply my own opinions and are neither professional advice nor the opinions of my employers
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ok thanks for that, is it the case that if i change insurance company after making a claim that the protected no claims is totally invalid so I will have to stick with that company?0
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No, insurers recognise each others NCD protection so if your NCD remains at 4 years because of the protection then your next insurer will honour the 4 years still but the previous claim will (may) still count as a strike against the protection should you decide to protect your NCD with them as well.All posts made are simply my own opinions and are neither professional advice nor the opinions of my employers
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ok thanks for that, i just wanted to make sure it was worth the money0
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Is it worth the money depends on your appitite for risk (same as is it worth getting anything over RTA insurance) so only you can answer the question. Hopefully I have helped explaining it so you can make an informed choice though
All posts made are simply my own opinions and are neither professional advice nor the opinions of my employers
No Advertising or Links in Signatures by Site Rules - MSE Forum Team 20
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