How does NCD work

[mickmcpaddy]

I've got many many years NCD but its capped to the max, 6 years or 9 years or whatever the insurance company chooses. However the max is round about 60% discount, Esure who I'm with actually give a couple of percent more the longer you stay with them.

So why is it if I run a quote without including my NCD (because I already use it on an other car) I get a price in the region of £450 per year but if I tell it I have max no claims it only drops to £350. This is with all the insurance companies that give a reasonable quote, not just Esure, they are all in the same ball park.

So what it the 65% a percentage of? Its certainly not the total figure. I remember years ago when I was younger NCD made a massive difference to your quote and you had to try so hard not to have an accident just to try and get the insurance affordable but today it seems it makes hardly any difference at all.

[mickmcpaddy]

One of the scams I fell for a few years ago was the insurance company saying they never received the proof of NCD and canceling the policy trying to charge a very large sum for the privilege. This happened to a couple of mates round about the same time as well who were with different companies. Must have been a scam of the month they were trying.