Is protected no claims really protected?

MakTheYak

I've just had a little accident in my car (scratch from the concrete in a multi-storey car park) and it's the first time I have claimed while having a protected no-claims bonus. I just want to be sure that if I claim my no claims bonus will be protected for all insurance companies or whether I will be tied in to the one I'm with currently (Admiral).

If it's supposed to be protected industry-wide, do I tell them that I didn't have an accident, when they ask? How does it work?

My excess is £410 but a quote I got for the body work was £735. I think that makes it worth claiming. What do you think?

mcjordi

proctected no claims mean your allowed so many fault claims within a certain period dependant on insurer.. they wont remove any of the no claims if you dont exceed this limit.. and claims over this will result in the no claims being removed.

to be honest you could get the work done for the excess or less at a private garage/bodyshop but you still need to inform the insurance company,,

Phoebe-

Protected no claims bonus literally does that...protects your no claims bonus. That's with any company, not just Admiral, so say you have 5 years NCB before your accident, you would still have 5 years NCB.

Your insurance price may still be affected at renewal tho, because the fact you've had a claim will still be rated on.

Phoebe-

If you've already informed your current provider of the claim, your best to proceed with it really as regardless of whether they pay out or not, it's still an incident now recorded under your details.

MakTheYak

So really what the protection is for is the reduction in price after they've already decided what you owe based on everything else including all previous claims.

So it's not like some magical guarantee that makes it as if there was no accident as far as the insurers are concerned.

That's helpful to know, thank you.

I haven't actually been in touch with the insurer yet. Do you think it's wise not to bother and swallow the extra cost? At what point is it better to claim and deal with the higher premiums etc?

jenniferfluff29

Hi

I'm with Direct Line. I hit a blown out tyre on the motorway. Had to claim off my insurance. I had protected no claims.

My insurance premium did not go up the following year because of this.

However, please not the the claim will be on your records for 3 calendar years for the date of the claim not 3 insurance years.


With direct line you are only allowed 2 claims in a 3 year period, then I think you lose a level of your no-claims discount. After I had the accident, I was extra cautious for the next 3 years as I did not want another bump and to lose part of my no claims discount and my protection.

Therefore, I would quickly be getting other quotes for the damage before proceeding down the insurance route, especially when you have such a high excess anyway.

Hope this helps

lisyloo

Do you think it's wise not to bother and swallow the extra cost?

For a little scratch - a resounding YES from me.
Take a look at a company called "chips away".
They are a franchise that send a van round a spray you scratches.

We had a medium size area done and I have to say I wasn't totally satisfied with the finish in metallis silver, but if you area is small I would certainly consider this route as it's a lot cheaper than a body shop painting entire panels.

Another option - live with the scratch??

At what point is it better to claim and deal with the higher premiums etc?

A few hundred but depends on circumstances.
You need to do the following calculations (not this is an approximation).

Add together
Excess
Plus increase in premium * 3 years * number of motoring policies you are on

Increase in premium comes from quotes with relevant claims and NCD levels e.g. zero claims and the one claim with same protected NCD.

Note that you also need to include policies on which you are a named driver or motorbike, van etc. as it's "motoring" policies not just car policies.

My figure is about £700, but then I'm on 3 policies (2 bike, 1 car).
It also depends on how many other claims you've had.
If you are going from 3-4 then it's much worse than going from 1-2.
So impossible to give a figure you have to work out your own.

Also bear in mind that if you have subsequent claims in a 3 year period then you'll really start getting stung.
So if it's borderline, I'd still pay for it yourself and 2,3,4 or more claims and your premiums will rocket.

I would look into your options for repair and would recommend taking a look at chips away or similar companies if it's a small scratch.
I would not recommend this type of repair if it's say over 6 inches and metallic paint and you have a nice car and are pretty fussy about it.
Although I have to say I'm not sure I'd notice if on ours if I didn't know it was there.

StephenMarsh

Phoebe- wrote: »

If you've already informed your current provider of the claim, your best to proceed with it really as regardless of whether they pay out or not, it's still an incident now recorded under your details.

This isnt true if you decide not to proceed with the claim and your insurers pay nothing out then you wouldnt be penalised in any way even if the cliam has been paid you still have the option of paying back the claim and thus no impact on subsequant insurance policies (tho this tends not to be cost effective)

Protected NCD is just that protects the bonus youve earned it does not protect the price. Following any fault claim most insurers will still load your premium because you are now (and rightly so) deemed a greater risk. However by protecting your bonus your still saving 2 years NCD which equates to around about 20%

In the OP situation I would get an independant quote or ask the garage in question to quote for the repairs if it was to be paid and not gone through insurance as most garages inflate repair costs if they know or think an insurer will be paying

lisyloo

This isnt true if you decide not to proceed with the claim and your insurers pay nothing out then you wouldnt be penalised in any way even if the cliam has been paid you still have the option of paying back the claim and thus no impact on subsequant insurance policies (tho this tends not to be cost effective)

How does this work please?
I have been told before on here that if you suffer a loss i.e. pay for repairs directly wikthout claiming, then you would STILL need to declare it when asked "have you had an accident, claim or loss"?

Why doesn't paying the insurer back, count as a loss?
Anyone?

StephenMarsh

lisyloo wrote: »

How does this work please?
I have been told before on here that if you suffer a loss i.e. pay for repairs directly wikthout claiming, then you would STILL need to declare it when asked "have you had an accident, claim or loss"?

Why doesn't paying the insurer back, count as a loss?
Anyone?

if you pay back the claim to the insurer then the insurer is suffering no loss your essentially buying back the claim. It works in a similar way if a claim was in dispute and was still in dispute at renewal you would have a fault claim against you but if that claim was settled in your favour and the insurer recovered 100% then it would go as a non fault claim.

It used to happen a fair bit going back 15/20 years but not really at all these days with such high claims costs from repairers and personal injuries claims being common place.

Its possible the insurer may hold it on file why wouldnt they if reported but it certainly shouldnt be effecting premium and it wouldnt need to be quoted on future quotes.

StephenMarsh

lisyloo wrote: »

How does this work please?
I have been told before on here that if you suffer a loss i.e. pay for repairs directly wikthout claiming, then you would STILL need to declare it when asked "have you had an accident, claim or loss"?

Why doesn't paying the insurer back, count as a loss?
Anyone?

also worth pointing out that most insurers ask "have you made any claims in X years" not have you had any accidents in X years