Quick insurance question. This can't be right surely?
Discussion
Don't want to get into specifics just yet, but my one of my sons is insured with a very reputable well known insurance company with his small car, he has 40% ncd which he paid extra to have protected last time round. (Twelve months ago)
His renewal came into force last weekend, he paid for it earlier last week but elected this time not to pay extra for the protected bonus as it was around £90 extra.
Last week during his OLD insurance period, he was involved in a small bump, he was stationary on a busy roundabout when an old guy in a fifteen year old fairly tatty German made car ran into the corner of his back bumper.
The damage was minimal to both cars (around £300 each)...the guy is claiming my son was at fault, which can't be right as he ran into the back of my son. Obviously my son blames him.
Both drivers are insured by the same (well known company) btw.
So, to the point.
1) My son rang his insurance to see if he could pay the extra few pounds to protect his NEW policy, even though it started a few days ago. They said he couldn't now as the policy was now in force....fair enough?
2) More importantly, they said if the claim goes against him...(it might not yet) he would lose his NCB because it goes off the date the claim is SETTLED, not when the accident HAPPENED, which sounds ridiculous to me. The accident happened in the period he had his NCB protected, even if it was a few days before that period expired.
Opinions please, maybe from someone in the industry...
His renewal came into force last weekend, he paid for it earlier last week but elected this time not to pay extra for the protected bonus as it was around £90 extra.
Last week during his OLD insurance period, he was involved in a small bump, he was stationary on a busy roundabout when an old guy in a fifteen year old fairly tatty German made car ran into the corner of his back bumper.
The damage was minimal to both cars (around £300 each)...the guy is claiming my son was at fault, which can't be right as he ran into the back of my son. Obviously my son blames him.
Both drivers are insured by the same (well known company) btw.
So, to the point.
1) My son rang his insurance to see if he could pay the extra few pounds to protect his NEW policy, even though it started a few days ago. They said he couldn't now as the policy was now in force....fair enough?
2) More importantly, they said if the claim goes against him...(it might not yet) he would lose his NCB because it goes off the date the claim is SETTLED, not when the accident HAPPENED, which sounds ridiculous to me. The accident happened in the period he had his NCB protected, even if it was a few days before that period expired.
Opinions please, maybe from someone in the industry...
MrBrightSi said:
I can only echo what people say on here. My insurers told me that my no fault accidents count against me. Boggles the mind that these people get away with this.
I only hope they soon reap what the sow.
Thats because people who have a history of any accidents, are more likely to claim. Even in a "no fault" accident you contributed by being in the wrong place at the wrong time, and are likely to be in the same again.I only hope they soon reap what the sow.
Its just statistics.
If the insure incident occurred when it was protected. He will still have the bonus intact.
They may apply an increase in premium this year (backdated to inception of this year / last weekend) due to the fact he now has an outstanding claim.
A point to note is that if it is settled against him. Or even split liability, then you/he could buy the claim back and reinstating the bonus.
Protected bonus - you protect the discount not the premium, as stated.
NOT PROTECTED
Base premium: £1000
No claims Discount: 40 %
Premium: £600
PROTECTED
Base premium: £1000
No claims Discount: 40 %
Protected cost: 10%
Premium: £660
IF CLAIM OCCURS AND LOOSE NO CLAIMS DISCOUNT WITHOUT PNCB
Base premium: £1200
No claims Discount: 20 %
Premium: £960
IF CLAIM OCCURS AND LOOSE NO CLAIMS DISCOUNT WITH PNCB
Base premium: £1200
No claims Discount: 40%
Protected cost: 10 %
Premium: £792
You decide ??? I protect mine, my dad doesn't and effectively self insures and has not had a claim in 10 years. This a saving of £600 in my example. But he is in his 60s and has more flexible income expenditure.
Hope this helps.
They may apply an increase in premium this year (backdated to inception of this year / last weekend) due to the fact he now has an outstanding claim.
A point to note is that if it is settled against him. Or even split liability, then you/he could buy the claim back and reinstating the bonus.
Protected bonus - you protect the discount not the premium, as stated.
NOT PROTECTED
Base premium: £1000
No claims Discount: 40 %
Premium: £600
PROTECTED
Base premium: £1000
No claims Discount: 40 %
Protected cost: 10%
Premium: £660
IF CLAIM OCCURS AND LOOSE NO CLAIMS DISCOUNT WITHOUT PNCB
Base premium: £1200
No claims Discount: 20 %
Premium: £960
IF CLAIM OCCURS AND LOOSE NO CLAIMS DISCOUNT WITH PNCB
Base premium: £1200
No claims Discount: 40%
Protected cost: 10 %
Premium: £792
You decide ??? I protect mine, my dad doesn't and effectively self insures and has not had a claim in 10 years. This a saving of £600 in my example. But he is in his 60s and has more flexible income expenditure.
Hope this helps.
Robb F said:
ctdctd said:
Protected NCD is a scam anyway - make a claim and they put the base premium up so you still pay more.
Yeah definitely a scam. So you can have the premium go up and your discount reduced, or just have the premium go up. I know what I'm going to choose.Robb F said:
miniman said:
Why is it a scam? The discount is protected. If people aren't intelligent enough to figure out the fact that 60% of £1000 is different to 60% of £2000, that doesn't make it a scam.
Might wanna switch on your sarcasm detector if you were talking to me...98elise said:
Thats because people who have a history of any accidents, are more likely to claim. Even in a "no fault" accident you contributed by being in the wrong place at the wrong time, and are likely to be in the same again.
Its just statistics.
Am i the only person who finds that a bit wrong though? Surely its being at fault for being burgled. It's something no one can help and is just something that can happen to anyone, so aren't we all in effect contributing?Its just statistics.
MrBrightSi said:
Am i the only person who finds that a bit wrong though? Surely its being at fault for being burgled. It's something no one can help and is just something that can happen to anyone, so aren't we all in effect contributing?
We all buy (should) insurance and yes not a question of being at fault for the incident or loss. However, insurers have shareholders they are a business after all, therefore if the pay out for a claim your policy is not profit making. Therefore a sort of insurers coop this leads to all insurers being able to collect a higher premium the year after. The actuaries work out the premium on the premise that you will only stick with that insurer for a year.
Being burgled yes not necessarily your fault. But maybe more likely to get burgled again as been done once can be done again. But if you live in a high crime/theft area then you pay a higher premium. Thus contributing more to the pot... But yet we are all sharing the cost.
Average claims cost rising due to the economy in general. mostly down to personal accident culture but VAT increase, low interest rates, labour rates, fuel costs to heat and light garages, insurers offices etc.
Job insecurity, therefore more likely to get an easy £2500 for a sore neck perhaps! (I'm not dismissing all injury claims).
Oh and the heart breaking insurers are not making money on their investments as per above interest rates, low (world and UK) GDP etc
but yes the UK is now officially out of recession. Will that mean lower premiums!! Maybe not.
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