No Claims Discount

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Mon 2 Feb 2004 11:14
No Claims Discount - Jonathan {p}
Hi all

I was having a discussion with a colleague about insurance. His wife had an accident, but she hasn't protected her no claims discount.

I thought that if you haven't got it protected and you have an accident, then you lose it all.

He thinks that she may lose a couple of years worth, but will still have some.

We both agree that there will be a premium increase.

Who is right?

Many Thanks

Jonathan
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Mon 2 Feb 2004 11:32
No Claims Discount - Mike H
Normally you'd go back a couple of years on the discount scale, which will have a corresponding effect on the percentage discount. Then there will be some clause about what will happen if you then have another accident within a certain period of time & what effect that will have - expect to go back to "nul points" if you have another within 2 years!

Your premium might also go up as well as your discount going down, which may therefore give you a disproportionate rise in premium next year.

Either way it will be more expensive next year!
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Mon 2 Feb 2004 11:57
No Claims Discount - Andrew-T
In my very recent (even current) experience, most insurers drop 2, some 3, years of NCD - I'm not clear whether this depends on the magnitude or culpability of the claim. What does vary between insurers is the no. of years which can be accumulated. Most seem to stop at 5, others go up to 9. But my broker said that even though I had reached 9, after claiming I was back to 2 because the insurer they were using ignored anything above 5. Not only that, their penalty for the lost years seemed to be greater - so I went somewhere else.
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