Protected No Claims - Worth It Or Not?
Discussion
It's insurance renewal day today. :grumpy: So, what's the general view, is it worth paying an extra £120.00pa to protect my no claims? I'm at maximum no claims if that has any bearing whatsoever. Surely if I have a claim the premium is going to go up anyway?
Oh, and if anyone has found an insurer, other than Liverpool Victoria, that has offered decent premiums on an M3, now is the time to shout up! :D
Oh, and if anyone has found an insurer, other than Liverpool Victoria, that has offered decent premiums on an M3, now is the time to shout up! :D
Worth it definitely, especially on a performance car. I've worked in insurance and seen the looks on peoples faces at renewal, when they've been told their revised premium with reduced NCD and it's not a pretty sight.
It's a calculated risk. What are the chances of you having to make a claim?
Shopping around though is a very good idea. Have you tried A Plan Insurance?
Understand that your 65% discount (or whatever it is at present) is taken off the gross premium, which in an M3's case will be quite considerable. So say the gross is £5000 less 65% = £1750.00 and then your insured only driver or other discounts are taken off this.
But if you only have 2 years NCD after a claim which is 40% discount the same example would be £5000 less 40% = £3000.00 which is an increase of £1250.00. then you have the problem of rebuilding your NCD up meaning that you have a similar problem for the next couple of years.
It might be an idea to ask your insurers how much the same quote would be but after making a claim with loss of NCD.
If you have a claim with protected NCD, it is simply a life taken away without loss of discount. So you still get the same discount from gross premium. There may/may not be a premium load for having had a fault claim but this will not increase your premium substantially. What will is if you actually lose NCD. Hope this helps, but for better advice you must speak to your insurers, who bless them, I'm sure will try to do their best for you.
>> Edited by anniesdad on Friday 2nd September 09:50
It's a calculated risk. What are the chances of you having to make a claim?
Shopping around though is a very good idea. Have you tried A Plan Insurance?
Understand that your 65% discount (or whatever it is at present) is taken off the gross premium, which in an M3's case will be quite considerable. So say the gross is £5000 less 65% = £1750.00 and then your insured only driver or other discounts are taken off this.
But if you only have 2 years NCD after a claim which is 40% discount the same example would be £5000 less 40% = £3000.00 which is an increase of £1250.00. then you have the problem of rebuilding your NCD up meaning that you have a similar problem for the next couple of years.
It might be an idea to ask your insurers how much the same quote would be but after making a claim with loss of NCD.
If you have a claim with protected NCD, it is simply a life taken away without loss of discount. So you still get the same discount from gross premium. There may/may not be a premium load for having had a fault claim but this will not increase your premium substantially. What will is if you actually lose NCD. Hope this helps, but for better advice you must speak to your insurers, who bless them, I'm sure will try to do their best for you.
>> Edited by anniesdad on Friday 2nd September 09:50
Take it.
I wrote off a 2 yr old 911 turbo a few months back with protected no claims. Full pay out of purchase price . On renewal of the replacement 911 turbo my insurance has not increased a penny.
Fantastic.
Would recommend Norwich Union Direct. Very good service.
They paid out 70 years worth of my annual premium! So I think im up on the deal.
>> Edited by superlightr on Friday 2nd September 09:42
I wrote off a 2 yr old 911 turbo a few months back with protected no claims. Full pay out of purchase price . On renewal of the replacement 911 turbo my insurance has not increased a penny.
Fantastic.
Would recommend Norwich Union Direct. Very good service.
They paid out 70 years worth of my annual premium! So I think im up on the deal.
>> Edited by superlightr on Friday 2nd September 09:42
Thanks for the illustration Anniesdad, very useful. Paying out £10 extra per month isn't going to make an iota of difference to me, but a huge hike in premiums would as I have two cars insured, both have separate ncd.
Thanks for the A-plan recommendation, I'm waiting for them to come back to me with a quote. At the moment Privilege is once again proving to be cheapest.
Thanks for the A-plan recommendation, I'm waiting for them to come back to me with a quote. At the moment Privilege is once again proving to be cheapest.
If you make a claim, odds on your premium will increase next year. If you have protected NCD, that's the end of it. Without protection, however, your premium will increase and your discount will decrease.
Your call.
£120 sounds quite a lot to add protection, though. Have you only just reached full NCD?
Your call.
£120 sounds quite a lot to add protection, though. Have you only just reached full NCD?
pdV6 said:
£120 sounds quite a lot to add protection, though. Have you only just reached full NCD?
No, had full (protected!) ncd for about 10 years.
3 year old M3 Convertible, garage, tracker, no accidents, self and spouse to drive, both mid 30's. Protected premium £813.00, without £694.00. I thought that was pretty good, noting that L&V are asking for £1200 to renew.
>> Edited by chim girl on Friday 2nd September 10:21
wiggy001 said:
But if you move to another insurer after a year, they will ask if you have made any claims in the last 3/5 years, not what ncb you have, so no point in having it IMHO...
But the majority will honour the NCD discount that you transfer. They may load (10% say, 25% for 2) for a fault claim but if their premium is cheaper than everyone elses, so what?
They ALL ask what NCB you have by the way.
As an example I've just run a quote through directline.com who insure our family car using your car as an example.
2002 M3 Con Man Pet - Ins/sp mid 30's, M postcode, Tracker, garaged, 5 yrs NCD Prot, £200 vol XS = £1104.60
2002 M3 Con Manual - Ins/sp mid 30's, M postcode, Tracker, garaged, 2 yrs NCD, I fault theft claim, £200 vol XS = £1790.25
An increase of 62%
So if you've been quoted £813.00 with Prot NCD, perhaps you could say £1317.oo approximately with a 62% increase. Food for thought.
And then multiply this difference by the couple of years it will take you to rebuild.
>> Edited by anniesdad on Friday 2nd September 10:29
2002 M3 Con Man Pet - Ins/sp mid 30's, M postcode, Tracker, garaged, 5 yrs NCD Prot, £200 vol XS = £1104.60
2002 M3 Con Manual - Ins/sp mid 30's, M postcode, Tracker, garaged, 2 yrs NCD, I fault theft claim, £200 vol XS = £1790.25
An increase of 62%
So if you've been quoted £813.00 with Prot NCD, perhaps you could say £1317.oo approximately with a 62% increase. Food for thought.
And then multiply this difference by the couple of years it will take you to rebuild.
>> Edited by anniesdad on Friday 2nd September 10:29
At the moment Elephant.co.uk are coming out with the best quote for the Corrado (due tomorrow) by a significant amount.
Norwich Union Direct can't get within £50 (£376 vs £315)
Edit: This has nothing to do with protected NCB or not, I just thought that you might want to get a quote from them to see if they are good for you too.
>> Edited by JonRB on Friday 2nd September 10:43
Norwich Union Direct can't get within £50 (£376 vs £315)
Edit: This has nothing to do with protected NCB or not, I just thought that you might want to get a quote from them to see if they are good for you too.
>> Edited by JonRB on Friday 2nd September 10:43
chim girl said:
Paying out £10 extra per month isn't going to make an iota of difference to me, but a huge hike in premiums would.
For me, you've answered your own question right here.
Without wishing to doom-monger, don't forget the law of sod says that once you choose not to take protected NCD, you'll soon enough wish that you had.
>> Edited by anniesdad on Friday 2nd September 10:47
Sorry, should've said that my £10 comment was confirmation that I was planning to take them again. Law of Sod says that I've had them for over 10 years, now isn't the time to quibble about a tenner extra per month!
Thanks again.
Privilege still in the lead, Elephant were £150.00 more, but thanks for the suggestion Jon,
Thanks again.
Privilege still in the lead, Elephant were £150.00 more, but thanks for the suggestion Jon,
NCB protection is a must.
My bike insur' is up just now and no one will let me protect my NCB until 4 yrs, I've only got 2 years from only have a bike that long.
The cost of protecting you NCB does seem extremely high, check with them on this or shop around.
I used to be with Adrian Flux for a modded SD1 Vitesse £900 odd, but am now with morethan for a BMW 530i £500 odd
see if either can do better for you
also consider if you have to make a claim how good will they be.
My car was written off, I had it for 2 months the car was just over 2 years old. They paid my purchase price. So had use of a 911tt for 2 months and still got to buy another.
NU direct were very quick, hassle free. They could have taken off a few grand depreciation from the money they paid me, they could have argued on the market value, but they didnt and they made a full payout on purchase price I paid 2 mths earlier from an OPC.
Plus my renewal premium has not increased.
Hence Im a fan of Norwich Union Direct.
My car was written off, I had it for 2 months the car was just over 2 years old. They paid my purchase price. So had use of a 911tt for 2 months and still got to buy another.
NU direct were very quick, hassle free. They could have taken off a few grand depreciation from the money they paid me, they could have argued on the market value, but they didnt and they made a full payout on purchase price I paid 2 mths earlier from an OPC.
Plus my renewal premium has not increased.
Hence Im a fan of Norwich Union Direct.
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