I'm sure this question has been asked in the past,
Is it worth protecting a no claims discount?
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Trying using the forum search to the right of the screen and using search terms such as protect, discount and bonus.
I suspect you'll find a reasonable amount of reading matter to keep you going.
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Trying using the forum search to the right of the screen and using search terms such as protect, discount and bonus. I suspect you'll find a reasonable amount of reading matter to keep you going.
Or just accept YES as the answer.
It cost a few quid extra on the policy and can save a packet in the event of a claim.
As I could not protect my NCD, I am looking at an extra £100 quid on the van policy. If I could have and did protect it I may have spent some £15 extra?
H
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>>Or just accept YES as the answer.
Ooo, not neccessarily. Its a bit more complex than that. In ome cases good, in other cases less so.
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Oh really?? [raises eyebrows in genuine surprise]
I must say I've always taken on the extra cost out of habit really. I've always felt even the partial loss of the NCD to be a huge risk/cost.
Maybe it's not as bigger risk as I have imagined.
Interestingly enough, my quote for the Land Rover was £95 cheaper this year (some £290) with NIG who protect NCD for life regardless of claims. Another company came in about £30 cheaper than that but have a limit of 2 claims in 5 years.
I advised the broker of my van claim and he says that the 2nd company are likely to be more expensive now and NIG won't charge any more.
H
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Don't believe anyone who says it only costs a few quid more! Get the quote with and without protection. I have recently had some quotes and protecting my NCB proved very expensive - in one case it added over £100 to the policy cost.
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For me, it's no contest.
Provided that I have the required number of NCB years (and there's no reason to think that I ever won't because my policy allows an unlimited number of claims each year without penalty) I will always go for NCB protection.
I have top quality fully comprehensive cover, any driver, protected 70% NCB, group 8 car, £50 compulsory excess, last renewed July 2004 for £284.53. Insurer? ~ CIS. I don't know how much the NCB protection costs me (nor am I bothered) but with a premium of £284.53 for such high quality cover it can't be much. As for drawbacks, what on earth could they possibly be? I've had protected NCB with CIS for approx 35 years and I have yet to come across any drawbacks to my protected NCB.
On one occasion I bought a new car that came with 12 months free insurance and the car was bumped in a carpark by an unknown assailant necessitating a claim. The next year when I went back to CIS they originally told me that I would have to build up my NCB years again from scratch, but they relented when I reminded them that I was a good customer.
Yup, protected NCB every time. And always with CIS.
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L\'escargot by name, but not by nature.
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Remember, ncb is only one factor.
If you have an accident, the insurer can still increase your premium if he considers you a "bad risk".
Also, as ncb protection is generally only given to drivers who are unlikely to make a claim anyway in my opinion (although I do agree there are VERY good arguments to the contrary), it is often not worth having.
Put it another way. If you have been paying 10%-15% extra for PNCB over the last 10 years, you have a profile that suggests if you do have a claim it will be non-fault and therefore PNCB won't help you anyway (unless other driver lies etc, which is always a strong possibility sadly). Therefore, if you add up all the extra premium you have paid over the years, it could be argued that you would be better off not having paid for PNCB and just biting the bullet and paying the extra if your premium rises due to a claim. It could also be argued (I put it to you Sir!), that you might as well put the extra money that you would have paid for PNCB into a savings account and treat it like your own little insurance fund if something happens a few years down the line.
Finally, with no-claims bonus please remember that a reduction of 20%/2 years in bonus due to a claim, does not mean a 20% increase in premium, it is much worse!!!!!
Example:
Client pays £1000 premium with 60% maximum ncb means he is paying 40% of their insurers gross (undiscounted) premium.
Therefore gross premium is (£1000/40) x 100 =£2500.
Say he has on accident and his bonus is reduced to 2 years/40% his premium would be 60% of the gross being £1500. This assumes the insurer does not "load" the premium due to his perceived driving ability.
Therefore, you can see that a 20% reduction in bonus increases a premium by 50%!
Sorry this is such a long post, but hopefully you will find it useful.
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Remember, ncb is only one factor. If you have an accident, the insurer can still increase your premium if he considers you a "bad risk".
At any given point in time, for a given set of factors (which don't include whether you are technically a "bad risk") the gross premium with CIS is the same for everyone. Deduct from that the appropriate number of years NCB and there you have your nett premium. No hanky panky, no mumbo jumbo, all straight forward and above board. Obviously this doesn't apply to all insurance companies, but it does for CIS. I'm not asking you to believe me because you don't know me, but I trust that you would believe a CIS agent if you were to ask her/him.
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L\'escargot by name, but not by nature.
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From my recent experience protecting your no claims is a MUST DO.
Been unfortunate to skid on some black ice & write-off my previous car, my 65% NCD remained intact as it was protected & my insurance quote for my new vehicle actually turned out cheaper than the previous one. Had my NCD not have been protected it would have gone down to 30 / 35% & I dread to think how much the insurance costs would have risen.
Regarding costs I've generally found that the protection part has cost around £30 extra on a policy (after making sure I got a competitive quote in the first place by ringing several companies).
With the number of cars on the road ever-increasing & therefore I guess the chances of having an accident I'm more than happy to pay the little extra to keep my NCD intact.
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Thanks to all who replied to my queery'I will probably protect my ncd for peace of mind.
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