So how does protected NCB work then?
Discussion
This has been bugging me over the last few days-
Luckily never been involved in an accident or needed to claim on insurance for anything (touch wood!). I am due for renewal soon and I have an option to protect my NCB. The premium would go up by about £60 to protect it.
Am I right in thinking that if you crash and claim on insurance, your unprotected NCB will go to zero but if you protect it you keep the full amount of NCB?
Say I crashed and claimed while having “protected NCB”, would the insurers not just screw you by asking “have you ever made a claim on your insurance” when you come to renew at the end of the year?
Is it worth me getting protected NCB or will they screw you regardless?
Luckily never been involved in an accident or needed to claim on insurance for anything (touch wood!). I am due for renewal soon and I have an option to protect my NCB. The premium would go up by about £60 to protect it.
Am I right in thinking that if you crash and claim on insurance, your unprotected NCB will go to zero but if you protect it you keep the full amount of NCB?
Say I crashed and claimed while having “protected NCB”, would the insurers not just screw you by asking “have you ever made a claim on your insurance” when you come to renew at the end of the year?
Is it worth me getting protected NCB or will they screw you regardless?
What happens is you pay an additional lump of cash for minimal return relative to the risk.
Per 'incident' you will lose 2yrs NCB. If you protect it you won't lose the 2yrs. However your base premium will go up regardless. So whilst you have a bigger NCB discount it'll be a discount off a heftier base premium.
Over a few years I'd have thought you could more than make up the loss of 2 yrs NCB discount just by not paying for protected NCB.
Besides, if you have a considerable amount of NCB you'll probably be at the max discountable limit anyway even adjusting for a loss of 2yrs.
Per 'incident' you will lose 2yrs NCB. If you protect it you won't lose the 2yrs. However your base premium will go up regardless. So whilst you have a bigger NCB discount it'll be a discount off a heftier base premium.
Over a few years I'd have thought you could more than make up the loss of 2 yrs NCB discount just by not paying for protected NCB.
Besides, if you have a considerable amount of NCB you'll probably be at the max discountable limit anyway even adjusting for a loss of 2yrs.
i think its up to the insurance company if your not protected.
last year with elephant, it stated in the policy that if i claim i would loose 2 years no claims.
but this year with highway it doesnt state anything.
and i believe if you are protected, they will increase your policy if you have had a claim, but you will also still get the discount for your no claims.
where if you were not protected, you would get the increase because of a claim, but won't get as big of a discount becuase of less no claim bonus.
last year with elephant, it stated in the policy that if i claim i would loose 2 years no claims.
but this year with highway it doesnt state anything.
and i believe if you are protected, they will increase your policy if you have had a claim, but you will also still get the discount for your no claims.
where if you were not protected, you would get the increase because of a claim, but won't get as big of a discount becuase of less no claim bonus.
So is it possible to define some general guidance as to who should and shouldnt protect their NCB?
i.e.
Anyone with over 15(?) years NCB should not protect as the loss of 2 years would not effect their premium
Young drivers should protect, as their premiums are usually higher and 2 years NCB could make a huge difference after a claim
People with cheap cars/premiums - shouldn't protect?
i.e.
Anyone with over 15(?) years NCB should not protect as the loss of 2 years would not effect their premium
Young drivers should protect, as their premiums are usually higher and 2 years NCB could make a huge difference after a claim
People with cheap cars/premiums - shouldn't protect?
That is indeed correct.
I have protected my NCB with Direct Line for many years and never really thought about it, perhaps naively assuming it had to be a good thing to do, until I worked out what it actually costs each year - which is about 15% of the total policy value...... You do not have to be Steven Hawkins to work out that, unless you make a claim in the first year you protect your NCB, you are almost certainly throwing good money after bad.
To add insult to injury, when i did make a claim about 3 years ago, my policy of course increased for the reasons outlined in the previous postings, as I was now a higher risk driver.
Would be interesting to know what I would have paid if I had just lost 2 years NCB, and how that would compare with what I have paid to protect it over the last few years....
I have protected my NCB with Direct Line for many years and never really thought about it, perhaps naively assuming it had to be a good thing to do, until I worked out what it actually costs each year - which is about 15% of the total policy value...... You do not have to be Steven Hawkins to work out that, unless you make a claim in the first year you protect your NCB, you are almost certainly throwing good money after bad.
To add insult to injury, when i did make a claim about 3 years ago, my policy of course increased for the reasons outlined in the previous postings, as I was now a higher risk driver.
Would be interesting to know what I would have paid if I had just lost 2 years NCB, and how that would compare with what I have paid to protect it over the last few years....
I was given the option to protect mine and did so this year simply because I only have four and I'm only 22, therefore if I was to lose a couple I might not be able to insure my car reasonably again. I think for older people with loads of no claims its maybe not so much of an issue but in my case I really wouldn't want to lose them.
Most insurance sites only allow you to input 9 years NCD. I know as I have something in the double figures but most don't state this (proof of NCD always comes back as 9 each year).
If you have full NCD (protected/guaranteed whatever) then they up the initial premium. If you have less NCD then they don't up the initial premium as much. The end amount you pay is the same (+ protection which is just sheer profit for insurers as I see it). You may need to shop around/haggle but if you're lazy, more fool you.
Given your profile, history, risk etc. they work out that that want, for example, £600 off you. you have "ncd" of 25% so make the "initial premium" to be £800, 25% off brings it back to £600. If you have "ncd" of 40% then they make the initial premium of £1000.
It won't "look" like this when quoting etc. of course else you'd see that "protection" may be a waste of money....
Consumers "perspective" is that there is an initial premium then you apply all the discounts and so on.
Insurers work out your risk and how much they want for your business, they then check all your discounts etc. and load up the premium accordingly so that after the discount they get back to the initial amount they want to charge you.
Protected NCD is free money to the insurers.
imo etc. blah blah blah.....
If you have full NCD (protected/guaranteed whatever) then they up the initial premium. If you have less NCD then they don't up the initial premium as much. The end amount you pay is the same (+ protection which is just sheer profit for insurers as I see it). You may need to shop around/haggle but if you're lazy, more fool you.
Given your profile, history, risk etc. they work out that that want, for example, £600 off you. you have "ncd" of 25% so make the "initial premium" to be £800, 25% off brings it back to £600. If you have "ncd" of 40% then they make the initial premium of £1000.
It won't "look" like this when quoting etc. of course else you'd see that "protection" may be a waste of money....
Consumers "perspective" is that there is an initial premium then you apply all the discounts and so on.
Insurers work out your risk and how much they want for your business, they then check all your discounts etc. and load up the premium accordingly so that after the discount they get back to the initial amount they want to charge you.
Protected NCD is free money to the insurers.
imo etc. blah blah blah.....
Edited by Dracoro on Thursday 17th September 14:14
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