What does 'protected NCB' mean, and should i bother..?

[AOK]

Evening ladies and gents..

just renewing the insurance on the panda and i can pay £50 over the normal premium to 'protect my no claims discount'.. heard about this but never gave it much thought as i never had more than a few years NCB. Currently have 5 years.

Is it worth sticking on? Surely if you have an accident you still have to declare it to your next insurer, regardless of NCB?

any ideas welcome

[reggie82]

Yeah, your no claims is protected, but you still have to declare accidents. So next time you insure, you'll still get your discount, but it will be off a higher premium.

[AOK]

reggie82 said:

Yeah, your no claims is protected, but you still have to declare accidents. So next time you insure, you'll still get your discount, but it will be off a higher premium.

I see..
so hypothetically, let's say I currently pay £400pa with 5 years NCB. I have an accident which is my fault:

scenario 1
I loose my NCB, and on renewal my premium goes up to £800

scenario 2
i have protected my NCB and on renewal my premium goes up to £800 (but I get x% discount on that because of my NCB) so end up paying somewhere between £400 and £800

is this right?

[saaby93]

Suppose your premium is £1000 but you have 60% NCD so you would only pay £400 but you pay £100 extra for protected NCD

You have an accident your NCD drops to 40% but your premium goes up to £1200 because you're a higher risk
You pay £720 +£100 to keep your protected NCD going.

Do the sums and decide whether to put the money in the bank instead.

When you change insurance make sure they honour protected NCD from a different insurer

Dont choose too low an excess.
Are you going to put an accident of a few hundred pounds through insurance if your premium is going to increase by the same for a few years?

[Reardy Mister]

Its an ingenius scheme where ing insurance companies who thanks to the way the vehicle reg system works, have this country's motorists by the balls, now offer the blindingly-fking-st-but-completely-essential thanks-to-the-system idea of insuring your insurance.

I'd give it five years before they find a way of making you insure your NCB protection. Insurance on your insurance on your insurance.

fking robbing s.

[AOK]

saaby93 said:

Suppose your premium is £1000 but you have 60% NCD so you would only pay £400 but you pay £100 extra for protected NCD

You have an accident your NCD drops to 40% but your premium goes up to £1200 because you're a higher risk
You pay £720 +£100 to keep your protected NCD going.

Do the sums and decide whether to put the money in the bank instead.

When you change insurance make sure they honour protected NCD from a different insurer

Dont choose too low an excess.
Are you going to put an accident of a few hundred pounds through insurance if your premium is going to increase by the same for a few years?

that is very insightful.. thanks Saaby.
Is there an industry standard %discount vs. NCB years?

for example
1 years - 10% discount
2 years - 15% discount
3 years - 20% discount
etc?

[fandango_c]

Reardy Mister said:

Its an ingenius scheme where ing insurance companies who thanks to the way the vehicle reg system works, have this country's motorists by the balls, now offer the blindingly-fking-st-but-completely-essential thanks-to-the-system idea of insuring your insurance.

I'd give it five years before they find a way of making you insure your NCB protection. Insurance on your insurance on your insurance.

fking robbing s.

3/10, could do better.

Good use of swear words, but content is bks.

[FreeLitres]

If you are not going to crash this year, then it's not worth paying for "protected NCB".

HTH

[Mr2Mike]

fandango_c said:

3/10, could do better.

Good use of swear words, but content is bks.

It could be more eloquently stated, but NCD protection is effectively insurance for your insurance as he has stated. As with every other scheme that insurers run; if they didn't make more money on the whole by doing it, they wouldn't do it.

If you are the kind of st driver that causes an accident on a regular basis it might work out better (though there are limits on the number claims for which the protection will cover), but most people with plenty of NCD are better off without it.

[Mermaid]

Reardy Mister said:

I'd give it five years before they find a way of making you insure your NCB protection. Insurance on your insurance on your insurance.
.

Well they already offer guaranteed NCB protection, so no matter how many claims you have ( & not just 2 in 5 years), the discount remains. Of course, an extra premium.

[saaby93]

AOK said:

saaby93 said:

Suppose your premium is £1000 but you have 60% NCD so you would only pay £400 but you pay £100 extra for protected NCD

You have an accident your NCD drops to 40% but your premium goes up to £1200 because you're a higher risk
You pay £720 +£100 to keep your protected NCD going.

Do the sums and decide whether to put the money in the bank instead.

When you change insurance make sure they honour protected NCD from a different insurer

Dont choose too low an excess.
Are you going to put an accident of a few hundred pounds through insurance if your premium is going to increase by the same for a few years?

that is very insightful.. thanks Saaby.
Is there an industry standard %discount vs. NCB years?

for example
1 years - 10% discount
2 years - 15% discount
3 years - 20% discount
etc?

It might be insighful but I got it wrong
Try again

Suppose your premium is £1000 but you have 60% NCD so you would only pay £400 but you might pay £100 extra for protected NCD


You have an accident your NCD could drop to 40% so and your premium goes up to £1200
so instead of £400 you pay £720
For the two years youve paid £1120

If you pay protected NCD
Instead of £400+£100 youd now pay £480 plus £100
For the two years youve paid £1080
You'll need real quotes from real companies to decide if its any use for a particular accident sequence
If you dont have an accident are you throwing away the protection fee

Edited by saaby93 on Sunday 4th November 20:09

[Deva Link]

Mermaid said:

Reardy Mister said:

I'd give it five years before they find a way of making you insure your NCB protection. Insurance on your insurance on your insurance.
.

Well they already offer guaranteed NCB protection, so no matter how many claims you have ( & not just 2 in 5 years), the discount remains. Of course, an extra premium.

Yep, I've got that, with LV=. I forget how much is added for protected and then guaranteed, but it was negligible amounts. I only actually pay £248, for a Merc with Class 1 business use and £100 total excess (I'd have zero excess if it was possible).

[fandango_c]

Mr2Mike said:

fandango_c said:

3/10, could do better.

Good use of swear words, but content is bks.

It could be more eloquently stated, but NCD protection is effectively insurance for your insurance as he has stated. As with every other scheme that insurers run; if they didn't make more money on the whole by doing it, they wouldn't do it.

If you are the kind of st driver that causes an accident on a regular basis it might work out better (though there are limits on the number claims for which the protection will cover), but most people with plenty of NCD are better off without it.

People with plenty of NCD are better without NCD protection - presumably you've gone through claims data and compared this to the pricing of NCD protection to conclude this? The price of NCD protection will reflect the expected cost of it. i.e. st drivers will pay more than those will plenty of NCD.

Reardy Mister said:

insurance companies who thanks to the way the vehicle reg system works, have this country's motorists by the balls

This is bks. The registration system in this country has no relation to insurance.

Reardy Mister said:

blindingly-fking-st-but-completely-essential thanks-to-the-system

More bks - st & essential?!?

Reardy Mister said:

fking robbing s

Yet more bks. Motor insurance makes little if any profit - does a business making a profit equate to robbing?

[Willy Nilly]

fandango_c said:

Yet more bks. Motor insurance makes little if any profit - does a business making a profit equate to robbing?

Do they do it out of the goodness of their hearts then?

[fandango_c]

Willy Nilly said:

Do they do it out of the goodness of their hearts then?

No.

[AOK]

saaby93 said:

it might be insighful but I got it wrong
Try again

Suppose your premium is £1000 but you have 60% NCD so you would only pay £400 but you might pay £100 extra for protected NCD


You have an accident your NCD could drop to 40% so and your premium goes up to £1200
so instead of £400 you pay £720
For the two years youve paid £1120

If you pay protected NCD
Instead of £400+£100 youd now pay £480 plus £100
For the two years youve paid £1080
You'll need real quotes from real companies to decide if its any use for a particular accident sequence
If you dont have an accident are you throwing away the protection fee

Edited by saaby93 on Sunday 4th November 20:09

right.. so about 50 ComparetheMeerkat emails in my junk box later:
I've kept all details the same, and have written down the same company's prices (quotemehappy.com) who incidentally were cheapest bar one scenario (the important one)

My insurance quotes for this year. No accidents.
4 years NCB: Unprotected - £449 vs. Protected - £509 <-- this is where i'm actually at
3 years NCB: Unprotected - £479 vs. Protected - n/a
2 years NCB: Unprotected - £503 vs. Protected - n/a
1 years NCB: Unprotected - £546 vs. Protected - n/a

My (experimental) insurance quotes for next year. No accidents. Making myself 1 year older.
5 years NCB: Unprotected - £374 vs. Protected - £419
4 years NCB: Unprotected - £411 vs. Protected - £460
3 years NCB: Unprotected - £437 vs. Protected - n/a
2 years NCB: Unprotected - £459 vs. Protected - n/a
1 years NCB: Unprotected - £498 vs. Protected - n/a

My (experimental) insurance quotes for next year. 1 accident, my fault, write off. Making myself 1 year older.
4 years NCB: Unprotected - £555 vs. Protected - £555
0 years NCB: Unprotected - £1351 (although cheapest was £831 with a different company)

My (experimental) insurance quotes for 2 years time. Same accident as above, no further accidents. Making myself 2 years older.
5 years NCB: Unprotected - £450 vs. Protected - £450
1 years NCB: Unprotected - £601

... I'm not usually a sucker for insurances and usually go down the route of 'whatevers enough not to get arrested', but I'm thinking maybe i should protect?

Will sleep on it.. hopefully the above has been useful!

[Reardy Mister]

fandango_c said:

Mr2Mike said:

fandango_c said:

3/10, could do better.

Good use of swear words, but content is bks.

It could be more eloquently stated, but NCD protection is effectively insurance for your insurance as he has stated. As with every other scheme that insurers run; if they didn't make more money on the whole by doing it, they wouldn't do it.

If you are the kind of st driver that causes an accident on a regular basis it might work out better (though there are limits on the number claims for which the protection will cover), but most people with plenty of NCD are better off without it.

People with plenty of NCD are better without NCD protection - presumably you've gone through claims data and compared this to the pricing of NCD protection to conclude this? The price of NCD protection will reflect the expected cost of it. i.e. st drivers will pay more than those will plenty of NCD.

Reardy Mister said:

insurance companies who thanks to the way the vehicle reg system works, have this country's motorists by the balls

This is bks. The registration system in this country has no relation to insurance.

Reardy Mister said:

blindingly-fking-st-but-completely-essential thanks-to-the-system

More bks - st & essential?!?

Reardy Mister said:

fking robbing s

Yet more bks. Motor insurance makes little if any profit - does a business making a profit equate to robbing?

1) Yes, it has everything to do with insurance because you cant drive without it. Try going to a country where third party insurance is included in the cost of your vehicle reg. Unsurprisingly, insurance is considerably cheaper.

2) st, yes. Insurance on insurance is a rip-off. It proves that the company can afford to pay you out if they need to but can scare into giving them some extra for doing so. Essential? Well I suppose only if you crash a lot.

3) Little if any? I bet you wish I didn't know the owner of an insurance company, eh?

I love it when people claim that a particular enormous industry makes little if any profit. Simple economics dictates that companies that make no profit, do not remain companies for long. If you can show me that they are in fact all charities, I will like a man with an orthapaedic shoe, stand corrected.

But thanks to the fact that if you want to drive, you need insurance, the system ensures they do quite nicely thank you.

[fandango_c]

AOK said:

right.. so about 50 ComparetheMeerkat emails in my junk box later:
I've kept all details the same, and have written down the same company's prices (quotemehappy.com) who incidentally were cheapest bar one scenario (the important one)

My insurance quotes for this year. No accidents.
4 years NCB: Unprotected - £449 vs. Protected - £509 <-- this is where i'm actually at
3 years NCB: Unprotected - £479 vs. Protected - n/a
2 years NCB: Unprotected - £503 vs. Protected - n/a
1 years NCB: Unprotected - £546 vs. Protected - n/a

My (experimental) insurance quotes for next year. No accidents. Making myself 1 year older.
5 years NCB: Unprotected - £374 vs. Protected - £419
4 years NCB: Unprotected - £411 vs. Protected - £460
3 years NCB: Unprotected - £437 vs. Protected - n/a
2 years NCB: Unprotected - £459 vs. Protected - n/a
1 years NCB: Unprotected - £498 vs. Protected - n/a

My (experimental) insurance quotes for next year. 1 accident, my fault, write off. Making myself 1 year older.
4 years NCB: Unprotected - £555 vs. Protected - £555
0 years NCB: Unprotected - £1351 (although cheapest was £831 with a different company)

My (experimental) insurance quotes for 2 years time. Same accident as above, no further accidents. Making myself 2 years older.
5 years NCB: Unprotected - £450 vs. Protected - £450
1 years NCB: Unprotected - £601

... I'm not usually a sucker for insurances and usually go down the route of 'whatevers enough not to get arrested', but I'm thinking maybe i should protect?

Will sleep on it.. hopefully the above has been useful!

One quick question: if you make a claim with 4 years NCD, does your NCD reduce to 0 years or somewhere between 0 and 4? It may be the latter and affect your calculations above.

[AOK]

fandango_c said:

One quick question: if you make a claim with 4 years NCD, does your NCD reduce to 0 years or somewhere between 0 and 4? It may be the latter and affect your calculations above.

i have assumed (maybe incorrectly), that (going into this policy with 4 years NCB)... i will end up with:
5 years NCB next year (if no accidents)
4 years NCB next year (if i have an accident but have protected my NCB)
0 years NCB next year (if I have an accident and have not protected my NCB)

is this how it works?

[vonhosen]

AOK said:

fandango_c said:

One quick question: if you make a claim with 4 years NCD, does your NCD reduce to 0 years or somewhere between 0 and 4? It may be the latter and affect your calculations above.

i have assumed (maybe incorrectly), that (going into this policy with 4 years NCB)... i will end up with:
5 years NCB next year (if no accidents)
4 years NCB next year (if i have an accident but have protected my NCB)
0 years NCB next year (if I have an accident and have not protected my NCB)

is this how it works?

No, you need to read the policy.