Protected no claims discount

Incorrect

I have just renewed my car insurance and found that my premium has jumped from£320 to £700 . I queried this because although I had an accident , I had payed for NCD protection . The insurance company told me that I still had my 9 years NCD , but because of my accident the premium had increased . So my question is , what is the point of paying for NCD protection ?

wgl2014

If you hadn't got protected NCD the renewal quote would have been even more.
The quote is based on risk, you had an accident so statistically are more likely to have another hence the increase, protecting your NCD doesn't alter this.

Quentin

MSE advice is never simply renew.

Use the MSE article on cheap car insurance to shop around.

Link in quick links at the top of the page

Incorrect

Ok , understand that . But are we not being conned into buying something on the premise that the premium will not go up ?

uknick

No. Say your premium before no claims is £1,000. You have 50% NCD so you pay £500. You have a claim so your premium goes up to £2,000. With NCD protection you still have 50% NCD so you pay £1,000.

If you didn't have NCD protection and you lost, say half of what you had, leaving you 25% NCD you'd pay £1,500 on renewal.

If you thought your premium would not go up, I can only assume you never fully read, or understood, your policy document.

Incorrect

You are probably right , but I'm sure that I'm not unique

EdGasketTheSecond

I think in bygone times NCB protection would have basically meant your premium wouldn't go up much but now it seems to go up for any sort of claim; even non-fault. Just another way for insurers to squeeze the consumer I'm afraid. Would have gone up more without the NCB protection but you should have shopped around rather than renew.

Incorrect

I didn't renew , I contacted the insurer to query the premium, as a result I bought cover elsewhere . My post on the forum was basically about whether the mechanics of the NCD protection is clear enough for everybody to understand . It has been made patently clear to me that some people understand it completely , but I feel that those people may be in the minority . I consider myself to be reasonably bright, although old , but I have been missing that for years .

A_Phoenix_of_Tangerine

Until your post, I'd thought the same thing. I don't actually protect my NCD currently, but maybe I should. I wonder if the terms around NCB are the same for all insurers, or whether some are more favourable than others?

Out of interest, what did you end up paying when you went with a different insurer?

Tom99

[FONT=Verdana, sans-serif]If you have protected NCD I expect the insurance co put up your premium enough after an accident to ensure that even after your so called protected NCD they will get an appropriate increase in premium.[/FONT]
[FONT=Verdana, sans-serif]Its a big con. If you have a fault claim your premium is going to go up whether you have protected NCD or not.[/FONT]

System

Incorrect wrote: »

You are probably right , but I'm sure that I'm not unique

Indeed. There are millions of people who don't read the literature that explains it.