Question on insurance premium loading

[havoc]

Mate of mine has scratched his car up on his gate-post over the Christmas break. Not too serious, but he thinks it could be quite pricey, and was going to phone his insurers today to put a claim in. I've told him his insurance-loading could easily equal the value of his excess again over 3 years, and to hold off for a day.

So - for a fault claim (he's been claim-free for a few years, thankfully), what would the loading be on an ordinary car insurance premium? (roughly) I guessed at around 10%, but does anyone have any better / more informed ideas?

Thanks,

Martin.

[SLCZ3]

Does he have protected NCB?, what is his excess?, if any, what is the value of his car?, all these have to be weighed against the loss of his no claims, which will take him back to O% NCB bonus which will determine the next premium.

[Noger]

Your guess is about right for a recent (1-3 year) fault accident for a 25-60 year old, although it depends on the other rating factors and the order in which they are applied.

NCD is unlikely to go back to zero. It is often either 2 years step back, but there are other schemes depending on the insurer.

[mcflurry]

I would put both scenarios into Direct line's (or other insurers) website, and see what difference the claim would make to your premiums, and then multiply the difference by 3 years.

For example, current premium = £500, premium with claim = £650, £150 x 3 years = claim if above £450 with excess...

[stuthemong]

Without knowing anything about him car, insuanrce, age, Id say the break even point is probably higher than he imagines.

It's really dependant on his x/s, mine is 500.

Anything <1K I'd never even consider on my insurance (500 from them, 500 from me), <1250 I'd probably just eat too. Getting to around the 1.5K mark, my protected no claims probably sort me out (id still have 4yrs after the claim) and would probably be around my tipping point - I think I'd pay around that 1K from them over the next 5 years in extra payments though, but its easier to eat 500quid than 1.5K.

[havoc]

Thanks for the replies guys...pretty much echoes my comments to him...now need to convince him to get some quotes before making his mind up...

[smartie]

the other consideration is that some ins. co's will not accept people without full ncb!