No Claims Discount Protection

oldersadderwiser

I have a policy with Saga motor ins.
I paid for No Claims Discount Protection (NCD P) Mine is 70%
I recently needed to make a claim (my fault) on my insurance and was told my NCD was protected ,
However my policy just came up for renewal and the premium has gone up by more than 30%
I queried this and was told that the NCD P protects the NCD ie 70% but that this has no relation to the premium and my premium has gone up because I made a claim
This just sounds like utter gibberish to me , what did I pay for ,when I paid to have my NCD Protected ?
Is this not just bare faced fraud ? :mad:
Any comment or advice please

gik

oldersadderwiser wrote: »

I have a policy with Saga motor ins.
I paid for No Claims Discount Protection (NCD P) Mine is 70%
I recently needed to make a claim (my fault) on my insurance and was told my NCD was protected ,
However my policy just came up for renewal and the premium has gone up by more than 30%
I queried this and was told that the NCD P protects the NCD ie 70% but that this has no relation to the premium and my premium has gone up because I made a claim
This just sounds like utter gibberish to me , what did I pay for ,when I paid to have my NCD Protected ?
Is this not just bare faced fraud ? :mad:
Any comment or advice please

Your NCD is still 70%. You did not have no premium increase protection.

Aretnap

It does what it says on the tin - it protects your NCD. Problem is that most people don't know how NCD works, so they assume it protects the premium itself. But they don't (or certainly shouldn't) claim that it does.

How it actually works is something like this:

Your base premium is (say) £1000. You have 5 years NCD, giving you a discount of 70%. You pay £300.

You have an accident. Your base premium goes up to £1300 to reflect this. You also lose 2 years NCD giving you a discount of 50%. You now pay £650.

You have the same accident but you protected your NCD. Your base premium still goes up to £1300, but you keep your 70% discount, giving you a new premium of £390.

As you can see, your premium still goes up, but not by as much as if you hadn't protected your NCD.

Also, not all of the increase may be due to the claim. Some may be due to Saga increasing their prices generally, assessing your car or postcode differently than they did last year, or withdrawing a new customer discount. As always, it is worth shopping around to see if you can get similar cover more cheaply elsewhere before you accept the renewal quote.

nobbysn*ts

I found saga renewals were ridulously exspensive, I always had a better quote, down to just half as much, elsewhere.

oldersadderwiser

Thanks for your explanation , I wish the rep had explained it li, e that on the phone, she actualy agreed with me when I asked her" if it was just a con trick" she managed to really put my knickers in a twist over this , I was left feeling like I had been ripped off and the rep knew it and agreed with me,
I wish she had explained it to me logicaly like you just did ,
thanks for clearing that up and putting my mind at rest :T
now I, m older sadder and wiser again

forgotmyname

My parents went with Saga for one year. The following year the renewal was much higher and their system prevents you getting another quote to compare.

By putting next doors address and changing their names very slightly saw a big drop in premium. But when they tried to get a proper quote it just said see your renewal.