Protecting no claims Bonus

452

Car_54 said:

452 said:

fred246 said:

There was a long discussion on this a while ago. As usual I was wrong. It was generally agreed that in the war of consumer vs insurer the insurer won. They made massive profits from people protecting their no claims discount. Everyone paid to protect their no claims discount and they were happy to pay it and it was the RIGHT THING TO DO. Sort of win win for everyone. I just get the cheapest cover, max the excess and remove any extras. I normally pay less than most people seem to pay for breakdown cover. I have done it for years. I have had maximum NCD for years. I can afford the premium, the excess and the increased premium if I crashed. I have a feeling it's one of those areas where the rich can afford to take a bigger risk. If you're poor you pay more because you can't risk an increased premium.

You're rich then are you? 

Is that why you run round in a 15 year old Ford with no service history?

You are confusing cause and effect. I would be considerably richer if I sold my present car and bought a 15-y-o Ford.

Depends what you consider to be considerable, you're not running round in a £200k car. 

fred246

So going back to the OP. Yes it is money saving not to protect your no claims discount but you have to accept that in the event of an accident you may pay a little bit more. Seeing that you have 17 years no claims discount you are probably at low risk of having an accident. Maybe time to join the seemingly small elite club of people who just say no to unnecessary extras?

neilmcl

quattros said:

Thanks for the Reply’s , I understood that 5yrs is usually the max NCD , then some will offer further discount up to max 9yrs , So lets say i have an accident and i have not protected my No claims do i drop down to 3yrs NCD from 17 years i currently have?

Unless you particular insurer offers something specific then generally yes it will.

Scrapit

452 said:

fred246 said:

There was a long discussion on this a while ago. As usual I was wrong. It was generally agreed that in the war of consumer vs insurer the insurer won. They made massive profits from people protecting their no claims discount. Everyone paid to protect their no claims discount and they were happy to pay it and it was the RIGHT THING TO DO. Sort of win win for everyone. I just get the cheapest cover, max the excess and remove any extras. I normally pay less than most people seem to pay for breakdown cover. I have done it for years. I have had maximum NCD for years. I can afford the premium, the excess and the increased premium if I crashed. I have a feeling it's one of those areas where the rich can afford to take a bigger risk. If you're poor you pay more because you can't risk an increased premium.

You're rich then are you? 

Is that why you run round in a 15 year old Ford with no service history?

The richest people i know run much older merc estates and range rover classics

AdrianC

quattros said:

Thanks for the Reply’s , I understood that 5yrs is usually the max NCD , then some will offer further discount up to max 9yrs , So lets say i have an accident and i have not protected my No claims do i drop down to 3yrs NCD from 17 years i currently have?

You don't have "17yrs".
Let's say your current insurer recognises 9 as the maximum. At the end of your policy, you'll get confirmation of 9yrs NCB.
If you've had an at-fault claim with unprotected NCB, you'll get confirmation of 7yrs NCB.

The difference is likely to be about 2% of your premium, going by what I was sent at renewal earlier this year...
https://forums.moneysavingexpert.com/discussion/6094792/ncb-percentages

So... how much is the protection as a %age of the pre-NCB premium, and how likely do you think you are to have an at-fault claim this year?

neilmcl

AdrianC said:

quattros said:

Thanks for the Reply’s , I understood that 5yrs is usually the max NCD , then some will offer further discount up to max 9yrs , So lets say i have an accident and i have not protected my No claims do i drop down to 3yrs NCD from 17 years i currently have?

You don't have "17yrs".
Let's say your current insurer recognises 9 as the maximum. At the end of your policy, you'll get confirmation of 9yrs NCB.
If you've had an at-fault claim with unprotected NCB, you'll get confirmation of 7yrs NCB.

The difference is likely to be about 2% of your premium, going by what I was sent at renewal earlier this year...
https://forums.moneysavingexpert.com/discussion/6094792/ncb-percentages

So... how much is the protection as a %age of the pre-NCB premium, and how likely do you think you are to have an at-fault claim this year?

Not necessarily.

Here's 2 examples from Axa car insurance and LV car insurance. Axa state any claim for unprotected NCB of 6+ years will result in the NCD dropping to 4 years. LV state claims for NCB of 5 to 8 years will drop to 3, 9 or above will drop to 4.

Like I said that's just 2 examples, most will be similar.

AdrianC

neilmcl said:

AdrianC said:

quattros said:

Thanks for the Reply’s , I understood that 5yrs is usually the max NCD , then some will offer further discount up to max 9yrs , So lets say i have an accident and i have not protected my No claims do i drop down to 3yrs NCD from 17 years i currently have?

You don't have "17yrs".
Let's say your current insurer recognises 9 as the maximum. At the end of your policy, you'll get confirmation of 9yrs NCB.
If you've had an at-fault claim with unprotected NCB, you'll get confirmation of 7yrs NCB.

The difference is likely to be about 2% of your premium, going by what I was sent at renewal earlier this year...
https://forums.moneysavingexpert.com/discussion/6094792/ncb-percentages

So... how much is the protection as a %age of the pre-NCB premium, and how likely do you think you are to have an at-fault claim this year?

Not necessarily.

Here's 2 examples from Axa car insurance and LV car insurance. Axa state any claim for unprotected NCB of 6+ years will result in the NCD dropping to 4 years. LV state claims for NCB of 5 to 8 years will drop to 3, 9 or above will drop to 4.

Like I said that's just 2 examples, most will be similar.

Interesting...

AXA would appear to fall in line with my suggestion - they recognise a max of 6, so subtract 2 and that gives 4.
LV, otoh, seem to treat 6-8 the same as 5, 9+ as 6.

born_again

And let us not forget that the BASE premium will be calculated on risk, so having a claim will be factored in at that point. Before any imangery NCD is taken into effect.
It is about time that the FCA forced insurance companies to include the base price of their insurance, then state car/area/driver risk costs & then the price with NCD. rather than you price is £XXX with X years NCD. 
Which actually means nothing....

AdrianC

born_again said:

And let us not forget that the BASE premium will be calculated on risk, so having a claim will be factored in at that point. Before any imangery NCD is taken into effect.
It is about time that the FCA forced insurance companies to include the base price of their insurance, then state car/area/driver risk costs & then the price with NCD. rather than you price is £XXX with X years NCD. 
Which actually means nothing....

It means everything, because it's the price you actually pay. Anything else is academic.

quattros

Thanks Again for the Replies , So little confused , let's Forget the 17 years NCD , but go by 9 years as most I looked at show that figure in the dropdowns , so let's say I dont protect it this year and have an accident/claim then that will drop down to 7 years so loose 2 year or maybe 3 , or goes to 3years NCD ?