No Claims Discount - what is it really about?

DullGreyGuy

Bigphil1474 said:
It's a bit simplistic to say it's all just marketing.

"Its Marketing" in the sense that the discount makes no sense from a risk management perspective especially when you add onto it the concept of NCDP where someone can have 2 fault accidents but still have maximum NCD. 

The other consideration is that 80%+ have maximum NCD (I'm being cautious, it previously was a higher percentage but not seen stats for years). Is it really a "discount" if almost everyone gets it all of the time? Sounds to me it's more like the standard pricing. 

The whole creation of "9 years NCD" was very much a marketing ploy. We used to give the same discount at 5 years NCD as others started giving for 9 years but, particularly before the age of aggregators, the marketing guys put out adverts saying how much better their policies were because you'd get more years recognised, they just neglected to mention that it wouldn't be a bigger discount nor that you'd be on a lower discount until you got to 9 years.


No Claims Discount exist on corporate policies but it isn't a up front reduction in the premiums but a rebate on the premiums if you go that year claims free and then renew with them. Makes much more sense to me

XRS200

My insurer doesn't tell me the % discount given to me.

They do however show the average discount given by them

1 year 24%
2 years 29%
3 years 30%
4 years 33%
5 years 35%

If I had a claim and it dropped from 5 years to 3, don't think I'd bother too much