Weird Insurance Quotations

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Tue 3 Aug 2004 21:26
Weird Insurance Quotations - blinky
As one or two may have spotted I'm in the market for a new used car.

Being sensible I wanted to work out the insurance costs. It also made sense to start with my current insurer, Direct Line, as they were £150 cheaper than anyone else for my current cover. (I also like the business use they throw in).

Few details: 31 year old male, will have had licence 3 years as of 27/7/04. No points or convictions. Will have 1 years no claims at the end of September.

Using a start date of 30/8/2004 I requested some quotes on a Skoda Fabia 1.6 16v (Y reg, dealer price £5700).

licence period 2 years, no NCB £541.80
licence period 3(or more) years, no NCB £521.80

seems reasonable (more experience, lower quote).

licence period 2 years, 1 year NCB £580.65
licence period 3(or more) years, 1 year NCB £559.65

Whoa! I thought the idea of a no claims bonus was that it lowers the cost of insurance not put it up. I've done this with various cars and it's always the same - price goes up with NCB.
I didn't change any other options and there is no option to protect my NCB as you need 4 years NCB to have that option.

Any ideas as why the insurance price goes up by adding a no claims bonus.

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Wed 4 Aug 2004 00:45
Weird Insurance Quotations - daveyK_UK
Its insurance - all about ripping people off.
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Wed 4 Aug 2004 07:42
Weird Insurance Quotations - Mark (RLBS)
I can only think that you are getting quoted 30% NCD on the one hand and a 40% introductory discount on the other.

However, I would also presume that you are getting all those quotes from a single insurer since it would be more usual to expect that a company giving a 40% Intro would have a higher gros premium than one offering 30% NCD. I suggest trying another/more brokers.

>>Its insurance - all about ripping people off.

Gosh, that's helpful.
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Wed 4 Aug 2004 09:21
Weird Insurance Quotations - Stuartli
There's something not quite right - as you say the higher the NCB the lower the premium should be nett.

Another important factor, which many people overlook, is your average annual mileage; not surprisingly, the more miles you cover the higher the premium for any particular quote.

Have you been using the Net or phone to obtain these quotes? If only the Net, try telephoning a company to see if they come up with similar quotes, first without and then with NCB taken into account.

Despite the comment above, insurance companies don't seek to rip people off in what is a highly competitive market - more often it's the other way round, which is why premiums are higher than they really should be.

Think of all those uninsured drivers, for instance, on our roads or those who try to squeeze more from an insurance claim then entitled.



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