No claims discount protection - motor insurance

dibby1939

I would be grateful for some information if possible.

My motor insurance is up for renewal, and the company have sent me a quotation for the coming year.   I have been perfectly happy with the company and the renewal quotation is only marginally above last year's.   BUT, the NCD protection charge (I have 25+ years NCD and no claims in the current year) has risen from £19.15 to £44.76 - a 133% rise.

Before I go online to renew it,and challenge whoever I speak to there, can anyone suggest why such a rise might have been imposed, and whether or not it seems reasonable.   Is it worth paying for?

Thanks.

DullGreyGuy

If you've not had a claim in 25 years and you can protect your NCD after 3 years you've probably paid over £400 for a cover never used... obviously sods law is that the second you dont buy it is when some idiot hits your car and runs off.

For most companies NCD maxes out at 5 years, anything above that is vanity. For a minority of insurers they max out at 9 years but ironically some of those that max out at 9 years give less discount at 9 years than others do at 5 years. If you have a fault accident (incs theft, hit and run etc) then with unprotected NCD you drop to 3 years NCD from anything 5+.

Key point to remember is NCD is a discount... vast majority of people have maximium NCD...what NCDP doesnt promise is that your base premium wont go up... so if your NCD is worth a 60% discount and you have a run of badluck which would have resulted in a £500 premium increase with NCDP that increase would be £200 instead... so certainly an improved result but doesnt make you impervious to premium increases due to claims as some think. 

chrisw

I'd go more on the overall cost than how much the individual elements are. But I must admit, the protection has usually been around £19, can't think why it might have gone up so much in your case.