Direct Line - No Claims Discount Protection Scam.

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  • Quentin
    Quentin Posts: 40,405 Forumite
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    Was your claim for "vandalism"?


    If so your NCD protection issue is irrelevant as Direct Line don't remove existing NCD after a vandalism claim - they call it the "vandalism promise"
  • Quentin
    Quentin Posts: 40,405 Forumite
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    Pennine_Lady wrote: »
    No, I mean they say I have 4 years no claims which doesn't actually mean anything because the protection isn't recognised/supported by other insurers......
    You misunderstand


    If you go elsewhere then you will be able to take your NCD earned with you - irrespective of whether or not the protection benefit you paid for has been used following claims.


    (Whether or not the new insurer will also allow you to protect it is a different issue)
  • Pennine_Lady
    Pennine_Lady Posts: 31 Forumite
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    Quentin wrote: »
    You misunderstand


    If you go elsewhere then you will be able to take your NCD earned with you - irrespective of whether or not the protection benefit you paid for has been used following claims.


    (Whether or not the new insurer will also allow you to protect it is a different issue)


    Cheers... I'm looking into that although when I disclose the claim I had the premium is increasing equivalent to having only 2 years Discount.


    My search for a better deal continues.
  • Norman_Castle
    Norman_Castle Posts: 11,871 Forumite
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    Pennine_Lady wrote: »
    I have 4 years No Claims Discount IN NAME ONLY which I've since found out is not even recognised by other insurers and the claim I had means that all the quotes I'm getting elsewhere are being based on only 2 years NCD.
    Does the renewal quote state you have 4 years ncb? If it does other insurers should accept it.
  • System
    System Posts: 178,094 Community Admin
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    I think what the OP is getting at, and the apologists for the insurance industry are deliberately pretending not to see, is that insurers use NCD in a very specific way. This is by tradition represented slightly misleadingly, to imply "your premium won't go up after a claim if you protect your discount", and some people are mislead into believing this literally.
    We all know, after the event, that that is not true, because insurers use "discount" in a special way that is not quite the same as other people or retailers.


    For example, I'm about to have some sand delivered. The merchant said this morning that it was £55.85 or whatever, but "I can do you a discount, call it £50". If when it comes it actually costs £55 or £60, that would be a scam. It would be no defence for him to say that the discount doesn't count the price increase, or that my track has a bad record for damaging his lorry so he's charging more.
    A discount is a discount.


    But not to insurers - they use a slightly different language you have to understand.


    That's all. There's no real issue - that's how they work. Just remember next time they are all sharks. :)
  • Quentin
    Quentin Posts: 40,405 Forumite
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    Pennine_Lady wrote: »
    Cheers... I'm looking into that although when I disclose the claim I had the premium is increasing equivalent to having only 2 years Discount.


    My search for a better deal continues.
    Again you misunderstand.


    The claim when you disclose it alters your profile and thereby increases your premium.


    You have a claim in your history!


    The NCD level is irrelevant!
  • Pennine_Lady
    Pennine_Lady Posts: 31 Forumite
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    Clifford_Pope wrote: »
    I think what the OP is getting at, and the apologists for the insurance industry are deliberately pretending not to see, is that insurers use NCD in a very specific way. This is by tradition represented slightly misleadingly, to imply "your premium won't go up after a claim if you protect your discount", and some people are mislead into believing this literally.
    We all know, after the event, that that is not true, because insurers use "discount" in a special way that is not quite the same as other people or retailers.


    For example, I'm about to have some sand delivered. The merchant said this morning that it was £55.85 or whatever, but "I can do you a discount, call it £50". If when it comes it actually costs £55 or £60, that would be a scam. It would be no defence for him to say that the discount doesn't count the price increase, or that my track has a bad record for damaging his lorry so he's charging more.
    A discount is a discount.


    But not to insurers - they use a slightly different language you have to understand.


    That's all. There's no real issue - that's how they work. Just remember next time they are all sharks. :)


    Brilliant - Wish I could have explained myself better in the same instance.


    For the people who still don't get it. You pay to protect your discount NOT the gross premium.


    If you have a claim which would have normally cost say a further £100 at next renewal the insurer still gets the extra premium by increasing the gross premium in such a way so when they deduct of your 'valued' protected discount they arrive at the figure they're wanting. So by paying to protect your discount you have achieved nothing!
  • Pennine_Lady
    Pennine_Lady Posts: 31 Forumite
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    Quentin wrote: »
    Again you misunderstand.


    The claim when you disclose it alters your profile and thereby increases your premium.


    You have a claim in your history!


    The NCD level is irrelevant!


    Exactly, I get it. I've been trying to say I paid £40 last year to protect something that actually in real terms is indeed irrelevant.
  • Sea_Shell
    Sea_Shell Posts: 9,379 Forumite
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    Years ago (many years) before online insurance, Protected NCD actually meant something. Brokers would have a rating guide, and your car + postcode made up the gross premium.

    A set of loadings or discounts were then applied in a certain order, with NCD being one discount. 1fault claim may have 5% load, but you'd still then get the benefit of 60% NCD. If you hadn't protected it this would've reduced to 40%.

    It's now all just algorithms!!!!!
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  • jackieblack
    jackieblack Posts: 10,316 Forumite
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    Pennine_Lady wrote: »
    Exactly, I get it. I've been trying to say I paid £40 last year to protect something that actually in real terms is indeed irrelevant.

    If you still believe that, try getting some quotes with a claim declared and zero NCD
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