Recenty I have been ringing around for a quote for my daughter who is buying her first car. Had what appeared to be a reasonable quote from a large firm for a policy "designed for those without a NCB". Wasn't such good value when I discovered that it was a policy for only 10 months. At the end of this period you get '1 years' NCB; and thus build up your NCB quicker was the justification.
Another broker offered a 1 years NCB as she had been driving on my policy.
Does anyone know if there are Insurance industry rules/guidelines on the granting of NCB? Stretching the argument above, could a firm insure you for say 3 months and give you a years NCB at the end of each period? Or a 3 year introductory NCB?
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Bob, I don't have any inside knowledge of the insurance industry but I have always viewed ncd as a marketing ploy. It is apparently a discount for no claims. Alternatively, you could view those with no ncd as paying a penalty premium because of their risk or claim behaviour but that would not be so palatable. As such, the ncd is an arbitrary discount that can be applied at the insurers discretion. Look at the policies given away with some new cars. It is free, to you, irrespective of your claims history. The manufacturer or dealer covers the cost with the insurer. Ultimately all that matters is how much you pay for your cover. I would continue to shop around for the best price and not worry too much about the ncd.
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Michael, Agreed the bottom line is the price you pay. However in general terms the greater your NCB, the smaller the premium.
The measurement of NCB has always been in years as far as I knew.
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I think things have changed in the insurance world nowadays. NCD was a way of proving to an insurance co that you have a clean claims record but now they ask "how many years ncd do you have with current company?" followed by "have you made any claims in the past 5 years?" Seems to me that the second question is the one that they assess your risk on. Insurance = necessary evil.
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I took out one of these 10-month "bonus accelerator" policies a few years back, only to find at the end of it that only the company in question recognised it as a valid year's NCD - when I switched to another insurer, it was lost. Worth grilling them on this point before taking out such a policy.
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> when I switched to another insurer, it was lost. Worth
> grilling them on this point before taking out such a policy.
And that, essentially, is the problem with NCD or protected NCD. In the end it is designed to tie you to the company you are with now.
You often see that the percentages are different some give 60% for 4 years, some give 65% etc. etc.
However, it doesn't maater a damn when you go to a new insurance company since all they will do is take the number of years you can prove and apply their own rates to it.
However, there is one thing about it that stops it being a complete rip-off.
Insurance Companies target the specific market they wish to be competitive (cheap) in. They will then organise their rating structure to ensure that they give this area an advantage but punish everybody else who falls outside it.
Therefore, many times increased NCD levels, Protected NCD levels and credited NCD from driving other cars (e.g. company cars) are designed to specifically cause these cases to be disproportionately cheaper when compared to their other rates.
The thing to do is TOTALLY ignore NCD and any other discount and simply look at the price you will pay. Anything else is either underwriting tactics or marketing.
M.
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Insurance company are EVIL they will charge you extra for protected no claims but when you have an accident regardless of fault or loss of NCD the accepted tradition is to then load your policy because of the accident then when it comes to paying out on a write off if you actually should want close to the value of your car you have to haggle with them you dont see any of this in even the small print my advice is forget no claims but when looking for insurance think very carefully about your answers to the broker as in their hands are large discounts you never realised existed think about proffesions what the broker is looking for is a responsible driver so people with responsible careers get a discount for auto engineer gets cheaper insurance than mechanic if its your (wifes daughters girlfriends sons car) then its a second ca. try it yourself, sound intelligent ring around it does make a big difference to premiums
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Another thing to watch is refunds and additional premiums.
Most High Street broker will reduce any refund you are supposed to receive and increase any additional premium you are supposed to pay.
In ALL cases a schedule amendment will be issued by the Insurance Company which is sent to the broker/agent. ALWAYS ask to see it and check the amounts, you will be amazed.
Broker/Agent Managers have financial targets for "admin charges". They always meet them.
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Another ploy is the loading applied if you have to cancel your policy early for any reason, having paid an annual premium.
You can easily land up paying nine months premium for four months cover.
For that reason it is often better to pay monthly rather than annually in advance, so if you cancel the policy you tell them to whistle for the balance.
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