No Claim Discount -

abc2019_2

Hi
if i had 7 years no claim discount and and if there was a claim to be made against me then how many years of no claim discount i will be left with the next time i go renewing my policy...

if i paid £1000 originally for my policy then how much would it increase by...

many thanks..

DUTR

abc2019 wrote: »

Hi
if i had 7 years no claim discount and and if there was a claim to be made against me then how many years of no claim discount i will be left with the next time i go renewing my policy...

if i paid £1000 originally for my policy then how much would it increase by...

many thanks..

That depends on your policy agreement, some underwriters deduct 2yrs some more.

As for the policy increase? Some maths are required (which you did at school), do consider the annual premiums vary.

Aylesbury_Duck

abc2019 wrote: »

Hi
if i had 7 years no claim discount and and if there was a claim to be made against me then how many years of no claim discount i will be left with the next time i go renewing my policy...

if i paid £1000 originally for my policy then how much would it increase by...

many thanks..

The answer to the first question is: ask your insurer or check your policy,
To the second question: Do some dummy quotes online with and without the accident to see what effect it has. I had a minor bump a few years ago and it made little or no difference to my premium at renewal, but my circumstances will differ from yours in a multitude of ways.

AdrianC

Different insurers regard different amounts of NCD as "max". Normally, protected NCD is only dinged by two years in an at-fault claim.

The premium increase will depend on two factors - the reduced discount, and the increased base premium because of your claim history.

The only way to put any numbers to it is to ask a passing meerkat.

abc2019_2

that's what i have...(above table shows original policy and lower table shows if i had bought no claims discount protection policy in time)...

Number of Years No Claims Discount (original policy)
One Years NCD (30%)
Two Years NCD (39%)
Three Years NCD (43%)
Four Years NCD (45%)
Five Years NCD (47%)
Six Years NCD(47%)
Seven Years NCD(47%)
Eight Years NCD(47%)
Nine or more Years NCD(47%)

Set back:
1 claim in next 12 months -3 years
2 claim in next 12 months -0 years
3 claim in next 12 months -0 years
4 claim in next 12 months -0 years

abc2019_2

so should i still be getting 43% discount as oppose to 47% for five years onward...thanks..

AdrianC

abc2019 wrote: »

so should i still be getting 43% discount as oppose to 47% for five years onward...thanks..

But discounted from a higher starting point, because your claims history is worse.

abc2019_2

...instead of paying £1000 with 7 years no claim
i should be paying ...£1000 + £1000 x0.43 =£1430? is that correct...

AdrianC

No. That's not how percentages work...

Currently:
Base premium - 47% NCD = £1000

So
£1000 = Base premium x 0.53
Base premium = £1000 / 0.53 = £1887

But after an at-fault claim, the base premium will go up to reflect your higher risk. Let's say it goes up to £2,000.
£2,000 - 43% NCD = £1,140

DoaM

No. You'd pay whatever is the new premium minus the discount.

Old = £1000 x (100% - 47%) = £1000 x 0.53 = £530
New = £1200 x (100% - 43%) = £1200 x 0.57 = £684

£1200 is an example/guess - nobody here can say what the new base premium might be.

As per above ... I overlooked that £1000 was what you paid after 47% discount.

Aretnap

abc2019 wrote: »

...instead of paying £1000 with 7 years no claim
i should be paying ...£1000 + £1000 x0.43 =£1430? is that correct...

No, if your actual premium was £1000 with 7 years NCD that would have meant that your base premium was £1887. (47% of £1887 is £887, so the discount gives you a premium of £1000).

If your NCD drops to 3 years, meaning that you get a 43% discount then 43% of £1887 is £811 - meaning that your premium would go up to £1076.

This assumes however that your base premium would not also rise as a result of the claim. It almost certainly would, but the insurer doesn't publish the amount that it would rise by, and might well vary depending on your other circumstances anyway. If, to pick an entirely arbitrary figure, it went up by 20% your new base premium would be £2264 and you would get a 43% discount from THAT, giving you a final premium of £1291.