Is NCD a fallacy?
Discussion
Some insurers provide a handy chart showing the amount of discount that you actually get...
This is Aviva's
1 year 21%
2 years 25%
3 years 26%
4 years 28%
5 years or more 30%
So if you have 5 years NCD and make a claim, it will take two years off your NCD dropping you from 30% to 28%.
Based on that, I definitely think that paying for Protected No Claims is a total waste of money unless you are making three or four claims a year.
This is Aviva's
1 year 21%
2 years 25%
3 years 26%
4 years 28%
5 years or more 30%
So if you have 5 years NCD and make a claim, it will take two years off your NCD dropping you from 30% to 28%.
Based on that, I definitely think that paying for Protected No Claims is a total waste of money unless you are making three or four claims a year.
Here my theory...
I suspect NCD is a factor that is multiplied by other factors. So for someone viewed as a higher risk by some other factor, like their age or location, then the proof that they haven't claimed may bring their policy rate down a little. But if you are already hitting all the lowest risk factors, they pretty much already know you're unlikely to claim, so the historical proof makes little difference.
I suspect NCD is a factor that is multiplied by other factors. So for someone viewed as a higher risk by some other factor, like their age or location, then the proof that they haven't claimed may bring their policy rate down a little. But if you are already hitting all the lowest risk factors, they pretty much already know you're unlikely to claim, so the historical proof makes little difference.
OverSteery said:
If you are wondering about NCB what about protected No claims?
I pay company A more money to protect my ncb.
I have an accident and then move to insurance company B - Company B then charge me less, because I paid extra to company A. Makes no sense.
It doesn't work like that. You have to tell Company B all of your previous accidents or claims. I pay company A more money to protect my ncb.
I have an accident and then move to insurance company B - Company B then charge me less, because I paid extra to company A. Makes no sense.
So Company B provide their quote based on that information, whether or not they 'say' they'll honour your previous NCD level.
If you stay with Company A ,they will still 'say' you have your NCD, but your renewal will almost certainly be higher than if there was no claim.
That's my experience anyway.
boyse7en said:
Some insurers provide a handy chart showing the amount of discount that you actually get...
This is Aviva's
1 year 21%
2 years 25%
3 years 26%
4 years 28%
5 years or more 30%
So if you have 5 years NCD and make a claim, it will take two years off your NCD dropping you from 30% to 28%.
Based on that, I definitely think that paying for Protected No Claims is a total waste of money unless you are making three or four claims a year.
It's subjective though; everyone's situation is different. I went 15+ years with no claims and then over a space of 2 years I had three people drive into my car. First time I fixed the damage myself as it wasn't too bad, but it did spur me to buy protected no claims at renewal - it was only an extra £20. Then someone side-swiped me and the car was written off; I kept the car and repaired it and continued with the same insurer and there was zero impact on my premium despite there being a claim, next year's even went down. Then someone else backed into me and again I fixed without making a claim as the bodywork was already in need of attention. This is Aviva's
1 year 21%
2 years 25%
3 years 26%
4 years 28%
5 years or more 30%
So if you have 5 years NCD and make a claim, it will take two years off your NCD dropping you from 30% to 28%.
Based on that, I definitely think that paying for Protected No Claims is a total waste of money unless you are making three or four claims a year.
Anyway I'm convinced my premium is still as cheap as it is because I had protection, and the cost of having it vs not is minimal (for me at least) so makes sense to keep it. If it was hundreds of pounds different I would be reconsidering.
There are obviously other factors. It's ludicrous to suggest NCD has no bearing on insurance policy cost.
If I run a quote though a comparison site, there is a huge change in quotes. My TVR for example is £297 with 7 yrs NCD, £886 is the quote with none!
However, the low quotes often do not utilise the NCD. I can insure it for even less with guaranteed value on a limited mileage classic policy, leaving NCD to use on a daily car.
They appear at the top but only digging into the details reveals their nature.
I expect there are similar motorhome / campervan / performance vehicle policies (e. Performance Direct) available that do not give any further discount for NCD. It's a giveaway that the quote is for one of these policies if it remains virtually the same when you re-run the quote without the NCD.
If I run a quote though a comparison site, there is a huge change in quotes. My TVR for example is £297 with 7 yrs NCD, £886 is the quote with none!
However, the low quotes often do not utilise the NCD. I can insure it for even less with guaranteed value on a limited mileage classic policy, leaving NCD to use on a daily car.
They appear at the top but only digging into the details reveals their nature.I expect there are similar motorhome / campervan / performance vehicle policies (e. Performance Direct) available that do not give any further discount for NCD. It's a giveaway that the quote is for one of these policies if it remains virtually the same when you re-run the quote without the NCD.
ks, the bane of punters and providers alike.Dohnut said:
I think it is.
When building a quote you are asked for any history of accidents, fault or no fault. Suspect this is more influential on price than whether you have NCB or not.
This.When building a quote you are asked for any history of accidents, fault or no fault. Suspect this is more influential on price than whether you have NCB or not.
NCD protection is with your current provider, it isn't something your next insurer has to honour.
boyse7en said:
Some insurers provide a handy chart showing the amount of discount that you actually get...
This is Aviva's
1 year 21%
2 years 25%
3 years 26%
4 years 28%
5 years or more 30%
So if you have 5 years NCD and make a claim, it will take two years off your NCD dropping you from 30% to 28%.
Based on that, I definitely think that paying for Protected No Claims is a total waste of money unless you are making three or four claims a year.
And then it still won't make a difference, as they will inflate the price due to your increased risk. This is Aviva's
1 year 21%
2 years 25%
3 years 26%
4 years 28%
5 years or more 30%
So if you have 5 years NCD and make a claim, it will take two years off your NCD dropping you from 30% to 28%.
Based on that, I definitely think that paying for Protected No Claims is a total waste of money unless you are making three or four claims a year.
Went away for a while (not to prison) so didn't have a car for over 3 years, so lost 25+ years of NCD/clean insurance record.
Bought a Mondeo and expected to have my pants pulled down with no NCD anymore, pleasantly surprised at about 300 quid fully comp. I know a lot of other things come into it as well but I'm sure a lot of all this NCD is b*llocks.
Bought a Mondeo and expected to have my pants pulled down with no NCD anymore, pleasantly surprised at about 300 quid fully comp. I know a lot of other things come into it as well but I'm sure a lot of all this NCD is b*llocks.
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