Is Protected NCD a con?

HHarry

fred246 wrote: »

Sounds like everyone's agreed that the insurance industry make money out of protecting no claims discounts but everyone wants to keep paying it! Very logical.

In the same way that they make money out of selling you the insurance in the first place?

For most of the years you pay your car insurance you make a loss - what you pay is less than what you are paid. In all likelihood over your motoring life you'll probably pay out more than you'll claim. But (apart from the legal requirement) it's comforting to have it 'just in case'

NCD protection is the same - just not compulsory. A waste of money, until the time that you need it.

fred246

However rich you are you still need car insurance to cover the sort of payouts that nobody can afford ie massive claims. So you pay the minimum that will cover a massive claim. So you get your quotes with all the extras removed.

SHAFT

fred246 wrote: »

However rich you are you still need car insurance to cover the sort of payouts that nobody can afford ie massive claims. So you pay the minimum that will cover a massive claim. So you get your quotes with all the extras removed.

Actually you don't.

SHAFT

Aretnap wrote: »

And in Fred's world they are all conning you. The only way to avoid being conned is to live in a cave, grow your own food and die at 40, like we did in the good old days before there were dastardly capitalists making money by selling products that people want to buy.

Will the undertake bury you for free or is that down to your family?

motorguy

fred246 wrote: »

Sounds like everyone's agreed that the insurance industry make money out of protecting no claims discounts but everyone wants to keep paying it! Very logical.

I pay it because i want my no claims protected in the event of a claim, irrespective of whether my insurance gets weighted against me that still puts me in a better position than not doing it.

Its a small amount of money extra - usually a few £s - but could save me £££'s.

Any insurance policy works in the same way - you either take the risk of an event not happening or you pay a premium to cover your risk.

motorguy

fred246 wrote: »

However rich you are you still need car insurance to cover the sort of payouts that nobody can afford ie massive claims. So you pay the minimum that will cover a massive claim. So you get your quotes with all the extras removed.

You have a legal obligation to have road risk insurance on your car, its not a matter of "being rich" or not.

However people may chose to insure against other risks - for example, losing part of their no claims.

That is their choice. You may chose not to, but that may cost you £££'s in the event of a claim. Your choice.

Again - you are applying your usual condescending and smug attitude that if people dont do what you do they are stupid and wrong.

All we need now is your alter ego Fred990 to log on to sagely agree with you...

mcpitman

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...

Perfect example, nothing to add.

fred246

People can save money by not paying to protect their no claims bonus. It's no problem to me if they want to keep giving more money than they need to insurance companies. You do wonder why they bother to use the money saving expert site though.

Mercdriver

fred246 wrote: »

People can save money by not paying to protect their no claims bonus. It's no problem to me if they want to keep giving more money than they need to insurance companies. You do wonder why they bother to use the money saving expert site though.

except in the case where they have an accident that the insurance company cannot claim successfully against a third party, when your advice becomes very much less useful.

My word, everything seems so black and white in Fredworld.

Joe_Horner

SHAFT wrote: »

Will the undertake bury you for free or is that down to your family?

You just died in a cave - nature will take care of the remains for you :beer: