Protected no claims discount

Sea_Shell

Back in the day...

You'd have a gross premium, made up of postcode area and car group.

Various discounts and loadings would be applied to this base premium based on your circumstances. these were applied in a very specific order, as laid out in insurers rating guides.

NCD would be the last "discount" to be applied after all the others. So you never got it applied to the "base" premium as such, but on the final figure calculated.

Now it's all done by algorithms, insurers are able to massage the base figures in such a way that they always get the premium they want, regardless of what NCD you have!!

AdrianC

dacouch wrote: »

The majority of Insurers work on a percentage of around the following

1 Year 30%
2 Years 40%
3 Years 50%
4 Years 60%
5 Years 65%

Care to provide any evidence of that? The figures I gave were copied directly from my AA policy docs (received last week), and stated they were the average applied to Zurich-underwritten policies in the last year. I'm happy to scan it if you wish.