AlanW

Is there a big difference between protected no claims and not protected?

Ta

Alan

P1Fanatic

The price - when doing my qoutes it usually adds £120+ onto the annual insurance price of a P1 at £1k non-protected.

If u make a claim that the insurers dont get back in full i.e. it was your fault or 50/50 etc then u will lose a year or two of your no claims. I assume this is the same for a £400 spoiler replacement or for A £4k bodywork job as its a claim.

Protecting means you can normall make 1/2 claims per year and not lose any NCB. Usually u have to have 4 years no claims and be 24 or over - although this depends on each ins company.

I personally pay it in case I do make a claim and/or I think about moving ins companies.

Rum*

ummmmm.....just re-read the above....sorry for going on a bit....but I guess it makes sense...

Tom

stu200

iTrader: (1)

Don't worry Tom, it all hangs together if you read it enough times

Just one other point, though ...

as well as losing your 2 years bonus for this fictional claim, you'd also lose your excess (250 quid and upwards) and (in a total loss situation) the remainder of your premium for the year

Now, if only T****'s would send me proof of my NCD, I could send it on to you ...

Rum*

stu200 *LMAO* ....exactly...

Having Protected NCD unfortunately doesn't save the excess and premium side...but that is obviously something else to consider...

As I've said above...IMHO...always protect...afterall you have insurance to cover "the unforseen event"....you might not claim for years....however at least when you do have to...its nice to know that all those years of "good" driving" and earning a huge NCD have not been wasted...

Rum*

The Cat

Tesco's charged me an extra £130 to have protected ncd. Put the total cost to £990, just turned 23 with 4yncd driving MY99 DBM.

Rum*

The Cat....yup...thats basically what I was saying above....Protected NCD will cost you between 10 and 15%...in your case 15%...IMHO well worth the extra money as I tried to show above...

Cheers

Rum*

Rum*

Personally I'd "Protect" every time...for customers with 4 years + No Claims Discount we automatically quote with protection and would be loathed to issue cover without it...I know it is an increased premium (and yup, that means more commission to us...) but in reality we find that those that didn't protect in the event of a claim are seriously pi$$ed off at losing 2 years No Claims Discount...especially if you consider that if you had been insured for 11 months with a company and were about to move up to 5 years discount (i.e. 65% NCD)...in other words your policy was incepted with 4 years NCD...in the event of a claim your discount would drop back to 2 years!!!...i.e 40%...in other words it is going to take you 3 years to just get back to where you are/were now!!!!....when you consider the increase in premium year on year....the 10 -15% that insurers charge for protection is actually well worth it (IMHO)....see below for example of costings...

EXAMPLE:

Policy With NIL NCD (0 years) - £1000
Policy with 30% NCD (1 years) - £700
Policy with 40% NCD (2 years) - £600
Policy with 50% NCD (3 years) - £500
Policy with 60% NCD (4 years) - £400 (£460.00 with protection)*
Policy with 65% NCD (5 years) - £350 (£402.50 with protection)*

* approx figures and used as an example only

Thus based on the above example of 4 years NCD (about to move to 5 yrs) your renewal premium should be (excluding any claims loading elsewhere in the workings...but you get the idea) £400.00 and with no claims in that year it should have been reduced to £350 !!!

However if you had a claim in the 11th month....your policy NCD would drop to 2 years and the premium would increase to £600.00!!!!

Thats already £250.00 more than it should have been this year...

Now presuming you are claim free for the next few years...then next year your premium should be £500.00 (3 years/50% NCD)

Again if you hadn't had a claim with unprotected NCD your renewal premium would still be at £350.00!!!

So in the 2 years since the claim you have ended up paying £400.00 more than you need....and you still aren't back to where you were when you had the claim!!!....

When you finally get back to 4 years NCD (annual premium s/b £400.00) its still £50.00 more than you should have been paying....and an overpayment of £450.00 more than you need have paid!!!

Now if Protection costs 15% (worst case scenario!!)...the increased premium would be....well work it out for yourselves cos I've now confused myself...but I think you get the idea....in the long run you are (IMHO) definately better off PROTECTING!!!

Rum*

(P.S. in the above example...if the NCD had been protected at 4 years the annual premium would have been £460.00....which in the long run would actually have saved you at least £390.00 in premiums !!!!! thats basically a full years premium and 3/4 a tank of fuel!!! ....ciau for now Rum*)

[Edited by Rum* - 1/14/2002 8:54:37 AM]