Direct Line - No Claims Discount Protection Scam.

Pennine_Lady

Hi Guys,


I'm just angy with a renewal situation I'm haveing with Direct Line and I just wanted to share my experience!

I've just received my Fiat Punto Renewal Notice from Direct Line for £612... It gone up quite a bit from last year.

I gave them a call yesterday to ask why there's been such a massive jump in premium? They said, in addition to Insurance Tax and inflation my premium has gone up mainly because I had a claim early this year (Malicious Damage Claim - £450).

I response I said that at last renewal I paid £40 to protect my No Claims Discounts to which they replied "Well Madam, if you look where it said when you opted for the cover "You can protect your hard earned No Claim Discount, you will also see the statement "However your premium may still increase following a claim!"

Okay, I said, what would my premium be this year if I hadn't protected my No Claim Discount last year? They said, it would still most likely be £612.

So what have I paid £40 extra for last year? Absolutely NOTHING! I have 4 years No Claims Discount IN NAME ONLY which I've since found out is not even recognised by other insurers and the claim I had means that all the quotes I'm getting elsewhere are being based on only 2 years NCD.

I find this most outrageous! How they can charge for something to which I am receiving no benefit - As far as I'm concerned this is just as bad as the Bank PPI scandal!
I'm most upset over this!

dunstonh

You failed to mention what the scam is

Browntoa

You've retained your no claims , but it's widespread across the industry that as a result of a claim you are a greater risk and your premium is increased

It's not a scam , it's an assessment of risk

Pennine_Lady

dunstonh wrote: »

You failed to mention what the scam is

Sorry, I was trying to say whether or not I paid the £40 extra last year to protect my No Claims Discount my premium this year would not have changed.


With No Claims Protection for which I paid £40 premium is £612


Without No Claims Protection, Direct line confirmed that my premium would still have been £612


The scam is, they charge extra for no claims protection but the protection is in name only... the subsequent renewal premium is the same whether you take it or not!

Pennine_Lady

Browntoa wrote: »

You've retained your no claims , but it's widespread across the industry that as a result of a claim you are a greater risk and your premium is increased

It's not a scam , it's an assessment of risk

If paying £40 just to have a bit of paper to say 4 years no claims bonus which isn't supported/recognised by anybody else is not a scam I don't know what is. I just don't get it, I'm sorry.


They confirmed my renewal premium is £612 whether I took out No Claims Discount Last Year or not.


I'm probably not explaining it correctly. Let me put it another way:


If your renewal premium was say £500 and your insurer offered you a facility to pay £40 extra to get a further 15% discount off next years premium (subject to no claims) would you be annoyed if you found out that your next renewal premium with the extra 15% will be exactly the same whether you had taken the offer or not.


I understand it's an assessment of risk... they get the premium they have calculated for the risk. If they want £612 they'll get it whether you have 40%, 60% or even 70%. No Claims protection or not. That's why paying extra is a scam.

k3lvc

Pennine_Lady wrote: »

Okay, I said, what would my premium be this year if I hadn't protected my No Claim Discount last year? They said, it would still most likely be £612.

Pennine_Lady wrote: »

Without No Claims Protection, Direct line confirmed that my premium would still have been £612

Pennine_Lady wrote: »

They confirmed my renewal premium is £612 whether I took out No Claims Discount Last Year or not.

So which is it ?

jackieblack

Pennine_Lady wrote: »

Without No Claims Protection, Direct line confirmed that my premium would still have been £612

Have you got this officially? in writing?
Because

Pennine_Lady wrote: »

Okay, I said, what would my premium be this year if I hadn't protected my No Claim Discount last year? They said, it would still most likely be £612.

just sounds like someone in the call centre guessing.

Pennine_Lady

jackieblack wrote: »

Have you got this officially? in writing?
Because

just sounds like someone in the call centre guessing.

You may be right as the call handler didn't seem that interested... just kept on repeating: "However your premium may still increase following a claim!"

jackieblack

Pennine_Lady wrote: »

I have 4 years No Claims Discount IN NAME ONLY which I've since found out is not even recognised by other insurers

Do you mean as a named driver?

Pennine_Lady

jackieblack wrote: »

Do you mean as a named driver?

No, I mean they say I have 4 years no claims which doesn't actually mean anything because the protection isn't recognised/supported by other insurers. It means nothing.... they may as well say I have 20 years with 80% discount. It doesn't matter... what is important is the premium you pay.


Insurers know what they want for the risk so it doesn't matter if you have protected 95% No Claims bonus as they'll always manipulate that calculation so they get what they want.


I don't have an issue which that... my issue is that by paying extra you're not gaining anything financially at next renewal if you're unfortunate to have a claim.

Pennine_Lady

k3lvc wrote: »

So which is it ?

£612 (wasted £40 last year)