Protected NCB - What's THAT all about?
Discussion
Ok, so stuck in the traffic this morning, getting lots of envious/admiring glances aimed at my Chimaera 
, I was listening to the radio and heard an advert for "Protected No Claims Bonus" insurance policies...
Apparently, a number of insurance companies offer this feature, but only for one or two prangs. After that, you lose the protection.
This particular company was claiming that their policy REALLY protects the NCB, no matter how many scrapes you have...
Well, I got to ruminating about this. The point behind an NCB is to give you a cost saving on your premium because you are lower risk, (no accidents). Surely, as more and more policies offer protected NCB clauses, and unsafe/unlucky drivers make claims on these policies, the insurers, (and their actuaries), are no longer going to be able to offer truly reduced premiums!
What's the point??!!
Harrigan
, I was listening to the radio and heard an advert for "Protected No Claims Bonus" insurance policies... Apparently, a number of insurance companies offer this feature, but only for one or two prangs. After that, you lose the protection.
This particular company was claiming that their policy REALLY protects the NCB, no matter how many scrapes you have...
Well, I got to ruminating about this. The point behind an NCB is to give you a cost saving on your premium because you are lower risk, (no accidents). Surely, as more and more policies offer protected NCB clauses, and unsafe/unlucky drivers make claims on these policies, the insurers, (and their actuaries), are no longer going to be able to offer truly reduced premiums!
What's the point??!!
Harrigan
It's a bit of a nonsense anyway - if you do have a prang (as I didn't but technically did - it's a long story 
) and have points (9, for a while) they just say, at the end of the period "well, you've still got your no claims bonus but we refuse to insure yo any longer". Then you have to answer "yes" in the "have you ever had an application for insurance declined?" box, and it all gets very awkward. And because of the crash and the refusal my insurance gets loaded right up anyway. Serves me right I suppose.
) and have points (9, for a while) they just say, at the end of the period "well, you've still got your no claims bonus but we refuse to insure yo any longer". Then you have to answer "yes" in the "have you ever had an application for insurance declined?" box, and it all gets very awkward. And because of the crash and the refusal my insurance gets loaded right up anyway. Serves me right I suppose.
The stats behind the NCB system doesn't add up anyway (I'm an Actuary). It was never driven by actuarial reason, only marketing. Full no claims to zero no claim actually has small statistical relevance to the chance that you might have a crash next year (some, but no where near 60% like the discount you get).
Insurance companies tend to price on competition and how much money they made last year. Once one starts a ploy like NCB they all have to follow to stay in the market.
Maf
Insurance companies tend to price on competition and how much money they made last year. Once one starts a ploy like NCB they all have to follow to stay in the market.
Maf
Years ago, you earned a protected bonus after 4 or 5 years accident free - it did not cost anything extra. Then the option came in to protect your bonus but at a cost (£55 on my £630 policy this year). Its the usual Marketing department crap that makes everything more complicated than it need be.
They protect your NCB so you still get the 60% discount on the premium, which sounds ok. BUT, they increase your premium cos you've had an accident. Result... you still pay more.
Every bodies out to take money from you somewhere down the line... (Am I getting paranoid or is every body against me at the minute?)
Every bodies out to take money from you somewhere down the line... (Am I getting paranoid or is every body against me at the minute?)
ninja_eli said: Apparently if you move to another insurer after having a prang and protected NCB, the insurer might not consider you as having full NCB. Not sure about this but this is what I was told and Admiral said the same thing when asked. I didn't bother to protect my NCB.
I have not found this to be the case and my ncb was honoured even though I had had a claim while my ncb was protected. However, my premiums went through the roof anyway, not just for that car but for my wife's car insurance on which I was a named driver but also on my bike insurance. My total claim cost was 1500 (I was skint at the time) but I estimate it cost me in the region of 5000 over the next 5 years in increased premiums and none of that went back to the original insurance company who I claimed against. It would have to be exceptional circumstances for me to claim again.
Regards,
Mark
Yep, it's not worth claiming unless the cars written off. When you look at the extra charges over the next few years on that insurance policy plus whatever else you insure or are named on it soon outweighs the insurance return.
Best bet Carzees old Volvo (see thread re M25 roadblock), don't register it in your name, don't insure it don't even wash it. You'll not get booked for speeding, parking, won't care about car parking knocks and when it breaks down you can just leave it and they can't charge you with littering the place up with scrap cars. Sorry wandered off at a tangent there, better take 2 more tablets.
Best bet Carzees old Volvo (see thread re M25 roadblock), don't register it in your name, don't insure it don't even wash it. You'll not get booked for speeding, parking, won't care about car parking knocks and when it breaks down you can just leave it and they can't charge you with littering the place up with scrap cars. Sorry wandered off at a tangent there, better take 2 more tablets.
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