Protected No Claims - how does this affect an insurance quote?

skea56

Insurance due for renewal in a few weeks. I have a settled claim this year for 3rd party only damage, as well as a chipped windscreen.

I have paid to Protect my No Claims history of 10 years.

Insurance quotes, including renewal are all over £300 more expensive.

Do i just suck it up and pay this higher amount or what is the point in protecting your no claims?

sk56

mattk_180

Protecting your no claims bonus just does exactly that.


The premium will still be increased following a claim but by protecting your bonus it means you still get your discount off of whatever that premium is. If you hadn't of protected it you would have lost some discount as well and it would've been even higher.


Just pay the premium, or if you're not happy with it, then look around for alternatives.

Quentin

It's the new 2 claims that have caused your premium to rise.

Assuming you were to blame for the "third party damage' then had you not protected your Ncd at renewal would have been 3 years.

Do dummy quotes online with 2 claims and just 3 years ncd to see what difference having it protected made

Blacky1990

[FONT=&quot]The Competition and Markets Authority (CMA) Private Motor Insurance (PMI) Order comes into force from 1st August 2016, affecting all policies written as private cars (excluding motor cycles) where No Claims Discount (NCD) Protection is being provided or offered (unless it is an integral part of the product, rather than being an option). It will result in extensive changes to broker and insurer systems and processes, and policyholder documentation. [/FONT] [FONT=&quot]This article provides a high-level view of the background to the Order, its requirements and what the industry, led by Polaris and its stakeholders and with BIBA assistance, is doing to prepare for the 1st August.[/FONT]

[FONT=&quot]Why was the Order Introduced?[/FONT]

[FONT=&quot]On 28 September 2012, the Office of Fair Trading (OFT) referred the supply or acquisition of private motor insurance (PMI) and related goods and services in the UK to the Competition Commission (now known as CMA) for investigation and report.[/FONT]

[FONT=&quot]The CMA concluded that legal remedies were required to improve information on NCD protection, as this was an area where consumer lack of information was most acute. As a result, the Order was passed in March 2015.[/FONT]

[FONT=&quot]Who is affected?[/FONT]

[FONT=&quot]Consumers considering purchase of NCD Protection for private cars (and vehicles that are written under a private car policy, but specifically excluding motor cycles) used primarily for social domestic and pleasure use must be provided with CMA prescribed information. The timing of this information depends on the distribution mechanism, and whether the quote is being provided orally or in writing. [/FONT]

[FONT=&quot]What Information Must Be Provided Under the Order?[/FONT]

[FONT=&quot]When “offering” NCD Protection the following requirements apply :[/FONT]

[FONT=&quot]1.[/FONT][FONT=&quot]The consumer must be advised of: [/FONT]

[FONT=&quot]o[/FONT][FONT=&quot]the “implied” price of the protection i.e. the difference in premium if they take NCD Protection compared to not doing so[/FONT]
[FONT=&quot]o[/FONT][FONT=&quot]the average percentage discount scale awarded to consumers in the calendar year that concluded more than one month prior to the NCB Protection Offer[/FONT]
[FONT=&quot]o[/FONT][FONT=&quot]the effect that claims will have on the policyholder’s NCD, with and without NCD Protection[/FONT]

[FONT=&quot]2.[/FONT][FONT=&quot]Warnings must be displayed to consumers that NCD Protection does not protect the overall price of the policy, and that premiums may still increase following an accident, even if NCD Protection has been purchased.[/FONT]

[FONT=&quot]3.[/FONT][FONT=&quot]A declaration is required from all providers (both insurers and brokers) on an annual basis to CMA confirming compliance with the Order, and providing details of the average NCD tables that are to be used. A CMA Template must be used (this can be found in Schedule 3 of the Order at [FONT=&quot](removed link)[/FONT][/FONT]

[FONT=&quot]When will changes to insurer and broker systems take place?[/FONT]

[FONT=&quot]System requirement changes have been finalised and development is in progress. Further updates will be provided during Q1 and Q2 of 2016. [/FONT]

[FONT=&quot]What changes are being made?[/FONT]

·[FONT=&quot]Insurer systems and broker software systems are currently being updated to provide the information needed to fulfil the Order i.e. the average NCD scales, step-back formula and implied price.[/FONT]
·[FONT=&quot]The changes are being made for private cars (including motor homes) and commercial vehicles to ensure compliance with the Order (as commercial vehicles may sometimes be written under a private car policy)[/FONT]
·[FONT=&quot]Some insurers may also make changes to their commercial vehicle products (even though this is not required under the Order). [/FONT]
·[FONT=&quot]Polaris, in conjunction with insurers and software houses, has developed a document template that meets the requirements of the Order, and which brokers can use to provide written information to their customers. This document will be in a standard format, to simplify broker processing. [/FONT]
·[FONT=&quot]Where customers become eligible for NCD Protection at renewal and NCD Protection isn’t currently in force, additional changes are being made to software systems so that the price including NCD Protection (and the implied cost) is available if needed. This will give brokers the information they require to meet the Order if the customer decides that they wish to take up NCD Protection.[/FONT]


[FONT=&quot]Bit lengthy but useful to know, this happened to me, but least someone is fighting for us!!!
[/FONT]

takman

Blacky1990 wrote: »

[FONT=&quot]Bit lengthy but useful to know, this happened to me, but least someone is fighting for us!!!
[/FONT]

All that says is that it requires insurance companies to explain to every customer what protecting your NCD discount means and what percentage discount every year of NCD gives you on your total insurance price.

So it doesn't actually change anything and only provides some mildly interesting information about the actual percentage discount. Which will obviously incurr extra administration costs for the insurance company and make everyone's car insurance more expensive!.

EdGasket

I have a question. How does protected NCB work when getting an insurance quote?
Example: I have full NCB (10 years) which is protected but lets say I had an accident 2 year's ago. So when getting the quote can I still say I have 10 year's NCB or not? There is no distinction made on the application for NCB derived through NCB protection vs. NCB from not actually having any claims. Of course I can declare the accident and say it was 'at fault' but then claiming I have full no claims bonus would seem illogical.

mattk_180

Most insurance policies already give a breakdown of what discount you get for each year of NCB you have. All this is going to do is make brokers/insurers add in one little line that says "Just because you have protected NCB, doesn't mean your premium won't go up if you claim". Not exactly going to change the world.


EdGasket - If you have protected bonus at the time of a claim, you still keep your 10 years. Insurers usually allow 2 fault claims within a 5 year period, with the protection no longer being available once you make that second claim. Any subsequent claims the bonus will then be reduced and you can't protect it until you are in a position where you have less than 2 claims in a 5 year period again.


If you get a new quote, it doesn't normally matter whether it was previously protected or not. You only have to tell them how many years you have and then based on your claims history, they will tell you whether they are able to protect your bonus for you or not.