worth protecting no claims bonus?

phoebe03cat

I have taken out bonus protection for years and currently have 9 years recorded with my previous insurer, being the highest option they record, although in reality its more than this. I had an accident last year when an idiot reversed into me in the car park, but insurances pushed for knock for knock as there were no witnesses. At the time we had a conversation regarding how the no claims protection worked and seem to remember I didn't think it was worth doing. Can anyone explain again how this works please as I would assume I would have 9 years of claims before I would lose it all; but don't think it works like this. Thanks for help.

forgotmyname

Depends on the wording.

If you dont have protected no claims they only count a max of 5 years no claims and for one incident you will probably lose 2 years. So you wont have 7 but only 3 years no claims left after.

So a higher risk with increased premiums and then less of a discount also.

shaun_from_Africa

Don't forget that having protected no claims doesn't mean that your premium won't rise following an at fault claim.

Say your premium is £500 and you have 50% NCB which is protected so you pay £250, then you have an accident which is your fault and your insurer pays out.

The next year you still have the 50% NCB but your insurer decides that you are now more of a risk to them so your annual premium rises to £600. You still have your 50% NCB which reduces your premium to £300.

magpiecottage

shaun_from_Africa wrote: »

Don't forget that having protected no claims doesn't mean that your premium won't rise following an at fault claim.

Or indeed a no fault claim.

I was glad to have protected my NCD when I had an accident a couple of years ago and have since been able to transfer it to a different insurer (which of course was made aware of my accident).

malchish

No Claim Discount in a scam pretty much. This is because no insurance company will openly state how many percent of discount you receive for how many years. They do what they want.
It happens sometimes that no no claim bonus still gives you better premium, than 9 years with your current insurer. This is a scam to prevent you from leaving, and from cancelling mid-year.
About 12 years ago they used to give percentages, then they got all quiet about them.
Another factor is that "protecting" it costs you about £50 a year. So 4 years of "protection" is £200 lost for sure! maybe, it is better to keep £200 in your bank in case of a claim and increased insurance...
So it is all subject to calculating your personal quotes, and things that may happen.
Bear in mind, that, if you do not have insurance for 2 years, the NCB disappears.
I wish a law comes out requiring the insurers to publish the exact discount for no claims, in clear percentages.

InsideInsurance

NCD Protection is simply an insurance in its own right. If you think its worth it comes down to your risk appetite just like any other insurance product.

NCDP is normally a percentage rather than a flat £50 as Malchish seems to suggest, if your premiums are low then NCDP will be, if your premiums are high then so is NCDP. Obviously at the same time the higher your premiums are the more you've got to lose for losing your NCD.

In the good old days when NCD discounts were more overt the top discount was typically 65% or 70% and the cost of NCDP was 5%. With some companies by adding NCDP you effectively reduced yourself to 4 years NCD where as with others you had "4.5" years. If you had a fault claim without NCDP you will drop 2 years or drop to 3 years, which ever is lower.