Is Protected NCD a con?

GG67

i remember talking to a guy some time ago who worked in the insurance industry, as a passing comment one day to make another point he said that 'its as big a con as protected no claims discount.... we put your premiums up anyway if you claim!' I didn't get the opportunity to follow up with him at the time and he's moved now so does anyone who has worked in the insurance sector have a view if this is true? what's the value of paying for protected NCD?

motorguy

If you have an accident they can weight your insurance against you.

If you dont have your no claims protected, then can weight your insurance against you AND they will reduce your no claims discount.

GG67

so in your view is protected ncd money well spent?

jk0

GG67 wrote: »

'its as big a con as protected no claims discount.... we put your premiums up anyway if you claim!'

You have it from the horse's mouth.



Nothing for me to add.

fred246

They always want you to protect your NCB so I figured that it wouldn't be in my interest to do so. I haven't paid it for years.

flashg67

I guess like most aspects of insurance - you only wish you had it when you need it.

For me, the cost to protect my NCD is less than the stepped back NCD would be if I had to make claim(s)

Aretnap

Here's how it works (numbers are examples and not necessarily real)

Your base premium is £1000. You have full no claims (5 years) which gives you a 70% discount. So your premium is £300.

You have an accident. Your base premium goes up to £1200 to reflect this. You also drop back to 3 years NCD giving you a 50% discount. So your premium goes up to £600.

You have the same accident with protected NCD. Your base premium goes up to £1200 but you keep your full 70% discount, meaning your new premium is £360.

It's it worth it? Well, like all insurance it depends on whether you think you're going to have an accident...

Aretnap

fred246 wrote: »

They always want you to protect your NCB so I figured that it wouldn't be in my interest to do so. I haven't paid it for years.

Tesco always want me to buy food, so I figured that it wouldn't be in my interest to do so. I haven't bought food for years.

(It is, of course, perfectly possible, indeed normal, for a transaction to be in the interests of both parties).

debtdebt

No it's not a con. If you made a claim on your policy, your premium would rise.

If you had protected NCD, your percentage discount would either remain the same or go higher.

If you didn't have protected NCD, your percentage discount on the premium would be lower so you would have to pay more.

dacouch

Aretnap wrote: »

Here's how it works (numbers are examples and not necessarily real)

Your base premium is £1000. You have full no claims (5 years) which gives you a 70% discount. So your premium is £300.

You have an accident. Your base premium goes up to £1200 to reflect this. You also drop back to 3 years NCD giving you a 50% discount. So your premium goes up to £600.

You have the same accident with protected NCD. Your base premium goes up to £1200 but you keep your full 70% discount, meaning your new premium is £360.

It's it worth it? Well, like all insurance it depends on whether you think you're going to have an accident...

Have two fault claims in a year your Base premium goes to £1500 but you only have 1 years no claims bonus and £1050

The person with Protected pays pays £450

I don't know many people who work in the Insurance industry who don't protect their no claims bonus

daveyjp

Aretnap wrote: »

Here's how it works (numbers are examples and not necessarily real)

Your base premium is £1000. You have full no claims (5 years) which gives you a 70% discount. So your premium is £300.

You have an accident. Your base premium goes up to £1200 to reflect this. You also drop back to 3 years NCD giving you a 50% discount. So your premium goes up to £600.

You have the same accident with protected NCD. Your base premium goes up to £1200 but you keep your full 70% discount, meaning your new premium is £360.

It's it worth it? Well, like all insurance it depends on whether you think you're going to have an accident...

That assumes there is only one insurance company in the UK. Last time I looked there wasn't.

Shopping around after a claim can save you far more than sticking with your current company just because you paid them extra money for extra cover.