Are the sums wrong?
10 July 2009, 02:22 PM
#1
Are the sums wrong?
Condensed version 
Right, i thought i had 4 years NCD with my insurance. I have just left Norwich Union/Aviva
and received a letter telling me that i have 5 years NCD, Great! 
I took out new insurance for about £400 with someone else a couple of weeks ago and excitedly rang them to see how much cheaper it would be now i have 5 years NCD.........£14.47 cheaper
I thought that once you had 5 years NCD your premium went right down
Can anyone explain how it is worked out please
Right, i thought i had 4 years NCD with my insurance. I have just left Norwich Union/Aviva
and received a letter telling me that i have 5 years NCD, Great! I took out new insurance for about £400 with someone else a couple of weeks ago and excitedly rang them to see how much cheaper it would be now i have 5 years NCD.........£14.47 cheaper
I thought that once you had 5 years NCD your premium went right down
Can anyone explain how it is worked out please
10 July 2009, 05:39 PM
#3
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No Claims Discount | discount car insurance - moneysupermarket.com
Every car insurer will calculate a no-claims discount in its own way. Generally there will be a no-claims bonus schedule that indicates how much discount you are likely to receive. The maximum number of years you can build a discount for will also vary, but will generally be set at five.
So, as an example, you may earn a 10% discount for being claim free for one year; a 20% discount after two years; 30% after three years; 50% after four years; and a maximum of 70% after five years.
Every car insurer will calculate a no-claims discount in its own way. Generally there will be a no-claims bonus schedule that indicates how much discount you are likely to receive. The maximum number of years you can build a discount for will also vary, but will generally be set at five.
So, as an example, you may earn a 10% discount for being claim free for one year; a 20% discount after two years; 30% after three years; 50% after four years; and a maximum of 70% after five years.
10 July 2009, 06:20 PM
#6
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This could be due to many things...
...discounted rate as you are a new customer
...rating based on your key facts as at next renewal (they already took account of the 5 year NCD
...they didn't care as they had already sold you the policy
...the way they rate premiums - the best insurers premium will be different on different days of the week, time of day, how many people have called from your post code so far on this day...
All of these factors will affect your premium.
...discounted rate as you are a new customer
...rating based on your key facts as at next renewal (they already took account of the 5 year NCD
...they didn't care as they had already sold you the policy
...the way they rate premiums - the best insurers premium will be different on different days of the week, time of day, how many people have called from your post code so far on this day...
All of these factors will affect your premium.
10 July 2009, 06:28 PM
#7
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Remember that the NCD is a percentage discount off of the initial premium. The actual percentage will probably vary from insurer to insurer. However, it doesn't mean that the initial premium can't increase from year to year. So one year you may get, say, a NCD of 50% (assume that's the max. you can have with your insurer) off of a premium of £1000. The following year you still have 50% off, but this time the premium is £1200... As someone has said, they are there to max. their financial take from you ...
Dave
Dave
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10 July 2009, 08:13 PM
#8
For some strange reason i thought my policy would be at least a third cheaper having 5 years as opposed to 4 years 
I did save £500 pounds though, the renewal price to stay with Aviva was over £900!
I was stunned when i saw how much they wanted. When i went on to the comparison sites nearly every quote was under £400, yet Aviva wanted more than double that.
All i have to do now is change from Virgin Media to Bt and Sky and i will be happy
I did save £500 pounds though, the renewal price to stay with Aviva was over £900!
I was stunned when i saw how much they wanted. When i went on to the comparison sites nearly every quote was under £400, yet Aviva wanted more than double that.
All i have to do now is change from Virgin Media to Bt and Sky and i will be happy
10 July 2009, 09:09 PM
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Rates are also going up this year. Underwriters don't make money from car insurance (the uk is the most competitive motor insurance market in the world, with very predictable loss ratios leading to an almost perfect market). It's not unusual for them to make a loss on the insurance itself, as they usually make it back on their investment income (i.e. they invest the premiums received in a mixture of equities, bonds, gilts etc). Unfortunately, the credit crunch has buggered the investment income, so they're going to have to balance their books by upping rates.
i.e. you might have got another 10% off this year because your NCD has gained a year, but the underlying premium is a higher number so you won't see the whole benefit quite so obviously.
Gordo
i.e. you might have got another 10% off this year because your NCD has gained a year, but the underlying premium is a higher number so you won't see the whole benefit quite so obviously.
Gordo
13 July 2009, 05:07 PM
#13
Shut your trap you, i am a good bet. (all my accidents were because i cant post and type at the same time)
COB, why did you change providers? I am leaving mine because i have to speak to call centers in India with a time delay and they hang up on you when they cant be bothered to deal with your problem.
Who do you rate the highest?
14 July 2009, 07:25 AM
#14
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You're fcukin mental 
Sky usually have decent ones up in Scottishland, but I can't understand them either.
VM have been fine for me, and even upped my broadband speed from 2mb-10mb for £2 a month extra.
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