No Claims Protection - is it worth anything ?

Monkeyhanger_1973

I have a 10 year no claims discount on my car insurance which is currently protected ( at an extra cost ). However, whenever I ask for new quotes from other insurance companies, I am asked if I have made a claim in the last 5 years. If I say yes, even with my protected ncd, will this make a difference to the quote price ? If it does, why should I bother paying extra to get it protected in the first place? if I say no, am I breaking the rules and invalidating any potential claim ?

shelly

Monkeyhanger_1973 wrote: »

I have a 10 year no claims discount on my car insurance which is currently protected ( at an extra cost ). However, whenever I ask for new quotes from other insurance companies, I am asked if I have made a claim in the last 5 years. If I say yes, even with my protected ncd, will this make a difference to the quote price ? If it does, why should I bother paying extra to get it protected in the first place? if I say no, am I breaking the rules and invalidating any potential claim ?

You have to say yes if you have made a claim in the last however many years they ask for. If you don't say yes, then make a claim in the future and your ins co finds out they may not pay out.

Having a claim on your policy doesn't automatically put up next years price. Hubby has full NCB which he pays to protect. Last year I made a fault claim on the policy but at renewal I actually got the policy cheaper than the previous year.

HTH

FlameCloud

Monkeyhanger_1973 wrote: »

I have a 10 year no claims discount on my car insurance which is currently protected ( at an extra cost ). However, whenever I ask for new quotes from other insurance companies, I am asked if I have made a claim in the last 5 years. If I say yes, even with my protected ncd, will this make a difference to the quote price ? If it does, why should I bother paying extra to get it protected in the first place? if I say no, am I breaking the rules and invalidating any potential claim ?

Try the same quote with the accident and without a no claims bonus (which is what would happen without it).

Insurance is based on the principle of open and honest relationships, if you lie to them and they find out about it (and they will, with the interlinked databases) you can guarentee no payout.

Monkeyhanger_1973

I would certainly not lie to the insurance co., it's not worth the hassle for a few quid cheaper. I just am not really sure if a protected ncd adds value or is really worth anything.

tali

at the end of the day your bonus will be protected - but that doesnt mean your premuims wont go up

shelly

Monkeyhanger_1973 wrote: »

I just am not really sure if a protected ncd adds value or is really worth anything.

Alot of people don't think protecting NCB is worth it. Personally we do. We can have 3 claims in 5 years without losing any NCB whereas someone who has say 5 yrs NCB will lose 2-3 of those after making a claim.

MarkyMarkD

It depends with whom you are insured.

If you are insured with esure, for more than 5 years, after joining them with full NCB, you will qualify for 75% NCB.

If you then went on to have 3 claims in 5 years (say in years 1, 3 and 5) your NCB would behave like this:

start - 75%
after 1 year (first claim) - 72%
after 2 years (no claim) - 73%
after 3 years (second claim) - 70%
after 4 years (no claim) - 71%
after 5 years (third claim) - 65%

Compare that to being with another insurer who only goes up to 70%, but where you pay for NCB. Only after the third accident will your NCB become lower with esure than it would have been at the other company, but protected.

And you pay c.15% of the premium for NCB protection, so that's an extra 75% of one year's premium over five years.

You will gather from the above that I don't protect my NCB.

With other companies, the mathematics are obviously different as you generally lose more when you have a claim. But it still takes a lot of premium increase (due to loss of NCB) to be worth paying the extra c.15% for all the years you don't claim.