No claims protection

elaine_bradley

If you have paid for protection of no claims bonus, does this merely protect the price on the premium (i.e. the price does not go up when you re-insure with the same insurer) or is it as if you had not claimed if you go with a new insurer?

neilmcl

No, it protects your no claims discount as the name implies, ie, you won't lose any ncd when you make a claim against your insurance.

For every year of claim free driving your no claims discount/bonus will increase by a year upto a maximum of 5 years, although some insurers go beyond this. The level of NCD will have an effect on your renewal premium, the more you have the greater premium discount you'll receive. If you have an accident and make a claim however, the insurer's will deduct some of your NCD as well as not adding for that current year, hence it'll have a detrimental effect come renewal. This is why it pays to protect as soon as you're able to.

Having said all that, there are a lot of other factors that'll effect your premium, generally premiums are on the rise anyway, due to a lot of legal claims, so chances are your premium will increase even if your NCD stays the same.

iamana1ias

elaine_bradley wrote: »

If you have paid for protection of no claims bonus, does this merely protect the price on the premium (i.e. the price does not go up when you re-insure with the same insurer) or is it as if you had not claimed if you go with a new insurer?

Just one little search would have told you that no, NCB protection does not protect the price at all. It protects the level of discount you get (ie 65%).

So if your base premium jumps up (for whatever reason) from £500 to £1000 the price you pay will increase too.

RedBern

I had protected NC for years, and then realised that I had been fortunate enough to never have had a claim anyway, so was paying (I think) 10% extra to protect something that didn't need protecting. I've 'gambled' in the past 2 years and.... touch wood.... haven't had a claim... Depends on whether you're a gambler whether you keep protecting your bonus.