Is Protecting your No claims pointless?

pabotto

Surely you have to declare any accident any way? Is it just a scam to make you pay more?

Herzlos

Not quite, having an accident will affect your premium, without a no claims bonus, that's what you'll pay. With a protected no claims you'll get a no claims discount.

After the accident, even with the protected no claims bonus you'll pay more though.

It's essentially insurance against car insurance.

pabotto

Yeah too me it seems like the most pointless thing ever, protecting your no claims is a complete con, your no claims bonus is pretty pointless if you have had to declare an accident anyway?!?

fivetide

No it protects the discount.

So... Premium £100 but, 50% discount for no claims = £50 premium.

Next year, you have a ccrash, premium rises to £150 but you protected your no claims so you dtill get 50% off = £75 premium

Of course not protecting your no claims you'd be paying £150 so at that point it looks cheap.

Given most premiums are treble or quadruple that you can see how it can be a benefit. However, like most insurance related things, it is something you only really appreciate when you have to use it.

Foxy-Stoat_3

Think the extra cost to protect a full NCD for me was around £45 a year. Don't think its a con at all.

Why do you think its a con then?

Yolina

Depends on what you consider pointless.

Random figures used but for ease of explanation:

let's say that your premium without any NCB is £1000
you have the maximum NCB so that's 80% off or thereabouts
-> you pay £200 for you insurance

You make a claim, then at renewal
your premium without any NCB is £1200
I think you lose around 3 years NCB (if someone could confirm please)and you end up with something like 60% off
-> you pay £480

if you had a protected NCB, you would still get 80% off the higher premium
-> you pay £240

fivetide

Yolina wrote: »

Depends on what you consider pointless.

Random figures used but for ease of explanation:

let's say that your premium without any NCB is £1000
you have the maximum NCB so that's 80% off or thereabouts
-> you pay £200 for you insurance

You make a claim, then at renewal
your premium without any NCB is £1200
I think you lose around 3 years NCB (if someone could confirm please)and you end up with something like 60% off
-> you pay £480

if you had a protected NCB, you would still get 80% off the higher premium
-> you pay £240

Is there an echo in here? :cool:

Yolina

fivetide wrote: »

Is there an echo in here? :cool:

I was doing other stuff (the cat wanted to play:p so I had to throw toys about) when typing my reply so took a bit longer than expected! Realised afterwards that you'd already explained it the same way :rotfl:

Sgt_Pepper_2

fivetide wrote: »

Is there an echo in here? :cool:

You policing the board again today?

Heaven_Scent_2

Surely you cannot carry over your no claims protection over to a new insurer if you do have an accident. So if you plan to stick with your current insurance provider for many many years, then maybe it's worth it, but if you change insurance regularly, then it's a complete waste of money.

kingstreet

I had protected no claims and had a total loss in 2007. I have changed insurers each year since then declaring my no claims and its protection, so no, you can carry it over from insurer to insurer, even with a claim in the last five years.