Car insurance no claims bonus protection a scam?

nomisnomis

My father paid his insurance co. for no claims bonus protection but when he recently has a small accident they still put his premiums up.
What's the point of NCB protection if they do this?
Has anyone else had the same experience?

Quentin

Your premium always goes up after a fault accident!

(Nothing to do with having protected NCD!)

forgotmyname

Your father still has his full no claims discount.

But having an accident now means he is an increased risk, Statistics say he is more likely to have more.

So instead of getting 70% off his £300 premium. He is now getting 70% off his £500 premium.

Its more annoying when the accident was not your fault. Still costs you for 5 years.

InsideInsurance

to follow whatstheirnames example, if they didnt have protected NCD then they would have then been getting 50% off of £500 rather than 70%

mikey72

You're insuring your ncd.
Who's going to make money out of any insurance, the customer or the company?

dunstonh

What's the point of NCB protection if they do this?

Clue is in the name. Its protects the no claims discount.

The gross premium to which the NCD applies to though is adjusted to take into account the risks of covering him. A number of insurers consider those that have had a claim to be higher risk going forward. This is due to stats showing that those who make a claim are statistically more likely to make another one in a short period after. It doesnt mean he will but if you clustered everyone up who has made a claim vs those that have not, then the claims rate is higher on those who have made recent claims. Hence the premium increase.

adamc260

mikey72 wrote: »

You're insuring your ncd.
Who's going to make money out of any insurance, the customer or the company?

I'm always worried about not having it though, if I had say 2 incidents in a year if I Had a bad year (touch wood) I'm not sure I could afford the premium going from 5 years to 1 year...

DCFC79

OP you need to delete the word scam from the title as its not a scam.

dunstonh

DCFC79 wrote: »

OP you need to delete the word scam from the title as its not a scam.

you know what this forum is like. Anything that someone doesnt understand is called a scam.

Parking_Trouble

DCFC79 wrote: »

OP you need to delete the word scam from the title as its not a scam.

Not really. The OP posed it as a question which has been answered.

Parking_Trouble

dunstonh wrote: »

you know what this forum is like. Anything that someone doesnt understand is called a scam.

Not an unusual reaction and usually understandable. Insurance is a complex beast often beyond the understanding of the average consumer. A non-negotiated contract based on utmost good faith. How many consumers understand that.

It's a simple fact that people don't read the small print and often the larger print.
In my recent experience you actually need to understand
parts of the Road Traffic Act to understand what your motor policy covers (and more importantly what it doesn't).

It's far easier to come on here, vent your frustration and ask a couple of questions, even if it means being told how stupid you are.