Paying to "protect" your no-claims bonus is a complete wate of money?

frostyfeet

I change car insurance companies every year because I found that you get a good deal as a new customer for the first year but the following year they sting you with a higher premium despite making no claim. I used to pay to protect my NCD and then i had an accident. When my renewal quote came though, although my NCD was unaffected, the quote was still much higher than the previous year (as per usual). However, when I shopped around, I had to declare the fact that I had made a claim and therefore those quotes were higher than they would have been without that declaration. So in effect, it wasnt worth paying for the protection as it didnt keep my premium down. I was told that the NCD protection only has to be honoured by the company you take it with, so they effectively lock you in and can charge what they like as long as the paperwork says you are still getting the relevant discount. I dont pay for NCD protection anymore.

MarkyMarkD

Whilst I agree with not paying for NCD protection, your logic in that explanation is wrong, frostyfeet.

Whilst your gross premium increased because you'd made a claim, your percentage discount didn't fall.

If you hadn't paid to protect your NCD, you'd have lost out even more because both the gross premium would have increased, and the percentage discount would have fallen.

"I was told that the NCD protection only has to be honoured ..." is, IMHO, rubbish.

Crabman

Hi folks, I've moved this thread to the Insurance Board

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere(please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]!!!!!![/EMAIL].

shelly

frostyfeet wrote: »

I change car insurance companies every year because I found that you get a good deal as a new customer for the first year but the following year they sting you with a higher premium despite making no claim. I used to pay to protect my NCD and then i had an accident. When my renewal quote came though, although my NCD was unaffected, the quote was still much higher than the previous year (as per usual). However, when I shopped around, I had to declare the fact that I had made a claim and therefore those quotes were higher than they would have been without that declaration. So in effect, it wasnt worth paying for the protection as it didnt keep my premium down. I was told that the NCD protection only has to be honoured by the company you take it with, so they effectively lock you in and can charge what they like as long as the paperwork says you are still getting the relevant discount. I dont pay for NCD protection anymore.

For as long as we have been able to, we pay to protect full NCB on 2 car ins policies. We change co's every year and have never had a problem with taking the protected NCB with us, its never been commented about or been an issue so I don't know who told you that you have to stay with the same co for it to be honoured but I'd say they were definately wrong.

I had a 100% own fault claim in May 2006 and at renewal our quote had, not surprisingly, gone up. I shopped around and got it cheaper after the claim, than the premium we paid the year I had the accident.
The numbers were (for the car policy I had the claim on)
for yr Nov 05- Nov 06 premium was £447.44 (with ASDA)
I had a 100% fault claim in May 06.
Shopped around at renewal and for year Nov 06-Nov 07 we paid £430.99. (RAC)
Shopped around again at renewal and for year Nov 07-Nov 08 we have paid £427.33 (Admiral)

Its not huge savings every year but proves that having a claim doesn't always mean your premiums will go up. You have to be prepared to put some time and effort in to reduce your premiums IMO.
I understand that paying the protect NCB is down to personal choice but we definately think its worth it.

kazz3105_2

Hello i have just been reading your opinions on protecting NCD. I am buying a new car and want to insure my 20 yr old son on it. I have 8 years NCD he has been driving for just over a yr (no claims/convictions) our quote was £1324, with NCD protection £4650 how can that be right???? Why is it so expensive to insure younger drivers they are not all hoodies some are hard working and careful drivers.....I would never allow my son to drive without insurance (or anything else) and he wouldn't but the price of the insurance is shocking anyone have any ideas where i can try?

MarkyMarkD

I am guessing that you are getting those quotes from a broker or comparison engine, and the difference is because the cheaper insurer won't do NCD protection for a young driver.

I don't believe that both quotes can possibly be from the same insurer, unless you have inadvertently recorded your son as the main driver on one of the two quotes.

JustJewels

I am pleased I protected my NCD last year, as my car was deliberately scratched whilst in a supermarket car park. No-one reported anything and the CCTV was useless, but after providing a crime number to my insurance company, I got my cars panels resprayed and no extra premium was charged at renewal. Without NCD protection, I would have lost 5years+ NCD!

Vandalism is not the first thing that springs to mind when considering car insurance, but it does happen!

So my £20 NCD protection was definitely worth it.