NCB Protection is pointless!

bigfreddiel

What is the point of paying to protect your NCB?

Say you have 80% NCB. You have an accident.

When renewal time comes you have to declare the accident and claim.

That's fine you think, my NCB is protected and so it is. You still get an 80% discount.

But here's the rub, because of the claim, your base level premium leaps up by a huge percentage making the 80% discount look like chicken feed.

So don't bother with paying for NCB Protection, it's just a waste of money.
Cheers fj

Quentin

You misunderstand.


Having protected NCB does exactly that after a fault claim. (You retain your full discount.)


So if your policy previously was £1000 - (say) 80% discount, you paid £200


After the claim your premium goes up to (say) £1500 with protected NCB you pay £300.


Without protection you only now have (say) 50% NCB, so you pay £750!


So it would have been money well spent!

FutureGirl

Protecting ncd doesn't mean the premium won't rise the following year it just means you get the same % discount...

forgotmyname

80% discount = chicken feed? How much would your premium have been without that discount?

It was included for free so win win for me.

Aretnap

An 80% discount is never chicken feed - in fact if your base premium increases by a large amount an 80% discount represents a much bigger saving than it did before the claim when your base premium was tuppence hapenny.

Personally I'm not a huge fan of protecting NCDs. The idea of paying extra to insure yourself against the risk of having to pay extra seems a little daft, and like most relatively minor risks I'd rather take the risk myself than pay good money to protect myself against something that may never happen and which I could afford to deal with if it did. Insurance is for things I couldn't afford to put right myself, like my house burning to the ground. I might feel differently if I was struggling to pay my premium every month and a large increase would force me to give up driving.

But while I might thing that the idea of insuring your insurance premium is a little daft, it's nowhere near as daft at thinking that the NCD protection is worthless in the event of a dlaim.

teddysmum

I suspect that insurance discounts are rather like those for double glazing ie the 'full price' is one that they invent but never get taken up on.