From personal experience, it put my insurance up for a while. The explaination being that if you have an accident, even a no fault one, you are somehow more of a risk. Changing insurer got it down though, even though I had to declare it for five years.
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I suppose that insurance companies are too busy to treat their customers as individuals. I read what PG says but if I was 2 miles away from my legally parked car when it was scraped by a passing vehicle I'd be fairly aggrieved to be considered "Accident prone)!
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if you have an accident, even a no fault one, you are somehow more of a risk.
This is true. If you have 2-3 no fault accidents in last 1-2 years, your premium is likely to go up [not to the extent if you were at fault accidents though].
Basically insurers will look for any excuse to increase your premium. In spite of seeing so many insurers nowadays, most of them are underwritten by only a few big companies - so there is not really a stiff competition in insurance market.
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I suppose that insurance companies are too busy to treat their customers as individuals. I read what PG says but if I was 2 miles away from my legally parked car when it was scraped by a passing vehicle I'd be fairly aggrieved to be considered "Accident prone)!
If you have one accident that is not your fault, it makes little or no difference. But if you have several, it suggests that you put yourself in the way of trouble e.g. parking your car in a dodgy area where crime is elevated etc. So the logic is reasonable.
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From personal experience it put my insurance up for a while.
PoloGirl,
(a) Were you just losing years of NCD?
(b) Did you have a protected NCD?
Edited by L'escargot on 10/06/2008 at 10:21
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This has nothing to do with NCD, protected or not!
It is all to do with the insurers perception of risk. No fault claims can be indicative of all sorts of things that that increase the the possible risk of a claim. For example driver style, time of day of use, parking in iffy locations, all possible indicators of increased risk. Ask yourself if you were running the business how would you assess risk?
Increased risk = increased premium. Simple.
pmh
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Protected NCB does not insulate you from premium hikes on renewal.
The Ins Co may say you have protected NCB - say 60% off but if you make a claim they may hike the base premium by 30% and then give you 60% off the inflated figure.
You still have your full NCB but pay through the nose.
I have a friend who had a minor bump - £300 to fix - £100 excess so the Ins Co paid the £200.
Renewal hiked the annual premium from just under £300 to £400 - so in 2 yrs they will have paid it back - Yes they still have a 60% NCB but at what cost.
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I see what you are getting at but, when you propose for insurance, beyond asking you where the car is at night one, is not asked any questions about one's driving style, time of day/night use or parking locations so how do they make a valid assessment of increased risk?
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>>so how do they make a valid assessment of increased risk?
I know this is a circular answer, but, the risk is assessed by considering your accident history, both fault, and no fault. I can't think of a more valid way to do it.
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I know this is a circular answer but the risk is assessed by considering your accident history both fault and no fault.
How far back will one's history be considered?
Edited by L'escargot on 10/06/2008 at 11:04
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How far back will one's history be considered?
>>
How long is a piece of string?
Question asked in all policy applications
Have you ever had a policy terminated, refused renewal or special conditions imposed?
Therefore they could go back 10's of years and not just the last 5 yrs as for claims and typically 10 years for points/bans etc
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Yes, but PMH said that risk could be assessed on driving style, where you park, time of use of car etc. They don't ask questions about this, other than overnight parking, so how do they have information on which to calculate an increased risk? Circular question!
Edited by Armitage Shanks {p} on 10/06/2008 at 14:07
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"where you park, time of use of car etc. They don't ask questions about this"
Do a Tesco Comparison insurance quote. They ask where it's parked during the day and at night.
Time of use is asked in a round about way when they ask what your occupation is.
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From personal experience it put my insurance up for a while.
Luckily enough, when I had my car written off (a lorry jumped out at me on a roundabout and I crashed into it), my insurer (Hastings) recouped all costs. My NCD (not protected) was unaffected. My next premium was less.
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From personal experience it put my insurance up for a while.
Pologirl is absolutely correct. Your base premium will be raised or "loaded" to reflect your "no-fault incident", whatever the cause of the incident [eg. even if it happens when your are shopping 2 miles away and someone damages your car in a car park and owns up to their fault and you recover all your costs from them]. It is for this reason it is advisable that your "no-fault" claim should include an item for the 5 years of negative effect on your insurance history. of course, some insurance companies may decide not to load your base premium, but this is not necessarily guaranteed and is not an obligation on the Insurer.
My next premium was less
Fotherington Thomas may well have paid even less if he had not had the "no-fault" claim. It is likely that unknown to him, his starting base premium was loaded by some amount. Without that loading, his renewal would have cost him even less than it did.
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Fotherington Thomas may well have paid even less if he had not had the "no-fault" claim.
Lovely, I'd like free insurance.
It is likely that unknown to him his starting base premium was loaded by some amount.
Why?
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Why?
Because you 1) had an incident, 2) and made a claim.
It does not matter that it was 100% not your fault.
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You said "It is likely that unknown to him his starting base premium was loaded by some amount." I asked you why - nothing to do with any claim at all. Perhaps you did not mean that, or I have mis-interpreted your post. Please clarify.
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I had an accident last July (my fault) and the total claim for mine and the vehicle I ran into came to something like £11,500. I've just renewed my insurance with the same company (Direct Line) and it hasn't gone up one penny. It's exactly the same price as last years price. Although I have protected no claims, I was expecting them to increase the base rate.
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"It is likely that unknown to him his starting base premium was loaded by some amount."
If it was known to you, then I am sorry to have second guessed you incorrectly.
But reading your OP, that is the wrong conclusion I came to.
An alternative reply I could have constructed is
"Known to FT his starting base premium was loaded by some amount, but his final next premium was less.
This is possible, for example
1. because the insurance company had reduced its base premiums say by 20% across the board for all customers, but then loaded FT's base premium by 10%. [So if insurance company's old base premium was £100 for a certain risk, and they cut their premium to £80, they then applied a 10% loading on it to give FT a new base of £88. After applying the NCD to this £88, FT was able to say that "My next premium was less".
2. because FT got some additional discounts for a myriad of other factors which he has not mentioned, eg. he got married/divorced/separated, or he got older and wiser, or he changed his job, or he moved house, or whatever. "
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ACtual case , no 2 son had a no fault accident 18 months ago all costs and excess recovered. He applied for insurance in his own name for the first time 2 weeks ago.
He filled in an online quote from elephant specifying no accidents, got the quote, called them to purchase and told them the details of the accident, the premium did not change.
In that case a previous no fault accident did not affect the premium and unless they were clairvoyant there was no base premium loading at the start.
don't know about other sitiuations or other insurance companies.
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