NCB insurance scam

p24hrsmith

My car is worth around £3,000 I have Fully Comp Ins (as it was cheapest) and full NCB. So what happens if my car is stolen and I make a claim? The insurance company pays me £3,000 BUT takes my NCB away. It then takes about 7 years to earn back you full NCB and in the mean time of course you have to pay increased premiums. So I wondered what was the full cost of this is and its a little shocking.
My full premium without NCB is £2,000 now for easy of working out lets say that is fixed for the next 7 years. The amount you will pay extra over that period is £5,600, £2,600 more than the insurance paid out. Add inflation and the inevitable hike for living in a now higher risk area and this figure is much higher.
What this means is that if you have an older car it is only really insured 3rd party whatever your cover is IF you have a NCB.

Yes I know there is such thing as NCB protection ins but you shouldn't have to pay extra to protect your discount and there is always a chance you have to make 2 claims.

Under the supply of services act (or whatever its called) it says charges should be reasonable so is a charge of £2,600+ reasonable for what in effect is nothing?

esmerobbo

If you made one claim you should not lose all your NCB. I have mine protected as I have 3 cars but before I would have lost 2 years if I made a claim.

Max_Planck

esmerobbo wrote: »

If you made one claim you should not lose all your NCB. I have mine protected as I have 3 cars but before I would have lost 2 years if I made a claim.

Indeed, most insurers step back your NCB by 2 years in the event of a claim - usually treating 5 years as a maximum regardless of the actual number of years. E.g. 10 years NCB, after a claim would step down to 3, similarly 5 years NCB would also step back to 3.

Not really a scam though is it.

esmerobbo

"Not really a scam though is it."

It wouldn't be if you wrote a Bentley off, I think I would rather lose my 2 years NCB then pay for the Bentley.

p24hrsmith

Max_Planck wrote: »

Indeed, most insurers step back your NCB by 2 years in the event of a claim - usually treating 5 years as a maximum regardless of the actual number of years. E.g. 10 years NCB, after a claim would step down to 3, similarly 5 years NCB would also step back to 3.

Not really a scam though is it.

My Policy document states for First claim I will lose 20% of NCB then second ALL NCB will be lost (below is extract from policy) .......

If only one claim is made in any period of insurance, and if the terms and conditions do
not change, any no claim bonus which you have earned will be reduced at your next
renewal as follows.
■ From 60% to 40%
■ From 50% to 30%
■ From 40% or 30% to nil
If two or more claims are made in any period of insurance, you will lose your no claim
bonus.

p24hrsmith

Ok let me clarify this, I am not talking about claims made against you by a 3rd party. I'm refering to the claims you make just for your own car like Theft, Fire and that little skid on the ice that put you in the ditch writing off your car

The less value there is in your car the more unfair this is, lets say you only make 1 claim so loose 20% NCB which will take 2 years to get back so based on £2,000 policy. The first year wikll cost u £400 extra the second £200 extra total £600 ..... However the car was worth just £500 and then there was the excess of £100 so the insurance pays £400 to you for the car and you then have to pay them back £600 does that sound fair?

skiddlydiddly

Generally the less the car is worth the less your premium is, so it is fair.If you lose ome of your bonus, get a car in a lower grouping to help balance it out.

esmerobbo

I can see where your coming from the way you see it you are actually paying for your own claim. By them paying out then increasing the premium. So ideally if you wrote a £500 car off it would be best to bite the bullet and take the loss if there was no third party claim.
I think you will find the majority of the premium is judged rightly or wrongly by your risk to third parties.

newbie007_2

I have been with a different insurance company each year base on cheapest quote for my requirements and most of them allow me 2 protected fault claims in 5 years, on the 3rd fault claim I will lose 2 yrs ncd. Probably best to move to another company who have better protection cover than your current insurer then. Only 5 years NCD is recognised, 8, 10, 15 yrs ncd is not irrelevant.

dacouch

There is a very big clue in it's name No CLAIMS bonus

atrixblue.-MFR-.

simple by a £4-500 car if it catches fire gets stolen sole accident its minimal loss to you and dont claim. you fully protecting your ncb youself. scrape some cash back by weighing in the damaged/stolen if recovered vehicle, if stolen will have to pay recovery and storage but still works out cheaper than claiming (or strip parts and sell on ebay).

dont live in a high risk area, drive like miss daisy or mr meldrew and not like mr bean and avoid driving in adverse whether conditions and take the train or bus or taxi if you have to venture out in bad whether off load the risk to someone else but yourself in those conditions.