NCB Protection Yes or No?

[liamt]

Hi Guys,

Well it is nearly that time of year again for me with my Car Insurance up for renewal in March. I have a Multi Car policy with Admiral for the A Class and my Brothers Peugeot 208 GTI 30th Anniversary. The renewal quote was a little high therefore I decided to get another quote from them as a 'new customer' (I know from experience Admiral can usually match these).

To cut a long story short the quote has come back considerably less. When looking at the additional options I could add no claims protection for £38 for me and £22 for him. I have 5 years NCB and he has six. The new quote is still considerably less than my renewal quote with the extra £60 for NCB protection. Is it worth it? I've heard there is a tipping point with NCB protection with regards to it not being cost-effective the longer a motorist goes without making a claim who has NCB protection.

Liam

 

[kid-jensen]

NCD protection is one big money-making scam....save your money and treat yourself to something you'll actually enjoy....

 

[steve333]

Hi Guys,

Well it is nearly that time of year again for me with my Car Insurance up for renewal in March. I have a Multi Car policy with Admiral for the A Class and my Brothers Peugeot 208 GTI 30th Anniversary. The renewal quote was a little high therefore I decided to get another quote from them as a 'new customer' (I know from experience Admiral can usually match these).

To cut a long story short the quote has come back considerably less. When looking at the additional options I could add no claims protection for £38 for me and £22 for him. I have 5 years NCB and he has six. The new quote is still considerably less than my renewal quote with the extra £60 for NCB protection. Is it worth it? I've heard there is a tipping point with NCB protection with regards to it not being cost-effective the longer a motorist goes without making a claim who has NCB protection.

Liam

Hi,I have a multi car policy with my wife as a named driver on both my cars(cheaper than not having any named drivers),I have 12 years no claims bonus which is protected -in the past I had cars hit whilst parked and also hit by an uninsured driver and lost my no claims bonus hence choosing to protect since those experiences,hope that helps!

 

[steve333]

NCD protection is one big money-making scam....save your money and treat yourself to something you'll actually enjoy....

Out of interest why do you think protecting your ncd is a money making scam Paul?

 

[wemorgan]

My one and only example of NC protection.
Wife crashed her car, causing £2k of damage. Several months later the insurance policy was up for renewal. The quote of ~£300 was the same as the previous year. She had her NC protected policy with Sheilas wheels.

 

[Ted]

Protecting your NCD may be a good idea...

Police make personal injury claim against robbery victim - BBC News

 

[markjay]

In recent years I have always taken NCD protection for both myself and Mrs. MJ.

It paid dividends in 2010 when the good missus rear-ended another car, resulting in repairs to both cars and personal injury claim by the other party - with only a very minimal premium increase to our policy the following year.

In contrast, when I made the foolish move of claiming on hit-and-run damage to my car in 1998, my insurance premium the following year more than doubled, and I ended up paying in subsequent premium increases far more than the original cost of the repair.

So it works for me.

 

[tanuie]

I always have protected NCB.

 

[Steveml63]

Hi,
The reason that protected NCB is a scam is that whilst your percentage NCB discount is protected, in the event of a claim - the base premium is not.
This means that after a claim, your base premium might double and then your percentage NCB is discounted from that figure.

Cheers
Steve

 

[markjay]

Hi,
The reason that protected NCB is a scam is that whilst your percentage NCB discount is protected, in the event of a claim - the base premium is not.....

This is correct, BUT from experience (at least with Aviva) the actual rise in the base premium was very minimal.

 

[geraldrobins]

If you make a claim you usually lose 10-20% of your NCD not all of it,and I believe NCD protection adds about 10% to your premium. Its a matter of personal choice. I dont have NCB protection. You will pay more in the long run I expect.

 

[Philip1972]

Hi,
The reason that protected NCB is a scam is that whilst your percentage NCB discount is protected, in the event of a claim - the base premium is not.
This means that after a claim, your base premium might double and then your percentage NCB is discounted from that figure.

Cheers
Steve

This is why I never protect. You might still be able to say "oh I have 7 years NCB" but the premium can be whatever they like and they will take into account a claim (you still have to declare any claim in the last X years).

 

[dejongj]

It is insurance, it is always about whether the risk is acceptable to you. Whilst others may have an opinion they are totally pointless as it is all about your risk appetite.

 

[Dave.tam]

I always have protected no claims. It's just not worth the risk imho.

You'll probably find that if you make a claim, your insurer will take 2 years off your NCB, so it doesn't seem that much BUT, it's common practise now for insurers to drop you back to only having 3 yrs NCB, no matter how many years you had prior to the accident if your discount isn't protected.

I have about 12 years no claims and wouldn't want that to drop to 3 years if I had ONE fault claim (even if most insurers count 5 yrs as maximum no claims discount).

The reason being, that not ALL insurers stop at 5 yrs being maximum no claims discount, so it could cost me 9 years no claims discount, for one fault accident if my no claims discount wasn't protected.

It's a personal choice I guess

 

[400ixl]

It is an insurance on insurance. You insure the risk of an accident and only paying a set amount (the excess) against that cost.

The protection of NCD is then insuring the risk of the discount being removed and the policy increasing significantly due to the first risk.

So its down to an individuals appetite for risk, do they back themselves not to have an accident and not have to pay higher premiums for a number of years whilst they rebuild their discount.

 

[st13phil]

It is insurance, it is always about whether the risk is acceptable to you. Whilst others may have an opinion they are totally pointless as it is all about your risk appetite.

^ This