No claims bonus protection

annascott

Hi
I have car insurance with no claims protection.
Does anyone know if it is really as it says it is, or is there a catch?
I need to make a claim (less than €1,000) and want to know that my premium won't go up. I am due for renewal in December.

thebiglad

Your gross premium may go up but the gross premium will be discounted by your full (pre-accident) NCB

Alternative is that your gross premium may go up but be discounted by a reduced NCB

Protected NCB is good value if you stay with the insurer - if you move you will have to declare the accident to them and it will impact the premium.

By the way, other thing to consider if claiming below €1,000 is the level of your excess - it will be at least €250 or for a discount on premium you can increase it and makes a €1,000 even less attractive.

To Elland Back

If the claim is under €1k, you need to also find out the policy excess to see how much you'll actually get paid.

Just because you have NCB protection doesn't mean alternative insurers will recognise it. If your current insurer is likely to apply a big rate increase across the board, you might not be able to move.

Do a few online quotes, declaring the claim and you will get an idea of what's on offer

ironclaw

I wouldn't put in a claim for €1000 unless it involves an unamicable third party. You'd be better off with a loan by the time you lose out on the excess (Probably €200+) and the inevitable increase next year. Mightn't go up by much but if I was going to fork out €500 to the insurance company between the two, I'd just come up with the next €500 myself and be done with the hassle and retain my bonus.

unkel

ironclaw wrote: »

I wouldn't put in a claim for €1000 unless it involves an unamicable third party. You'd be better off with a loan by the time you lose out on the excess (Probably €200+) and the inevitable increase next year. Mightn't go up by much but if I was going to fork out €500 to the insurance company between the two, I'd just come up with the next €500 myself and be done with the hassle and retain my bonus.

Plus the fact that effectively, with a claim, you won't be able to switch to another insurer in the next 5 years. So your current insurer has you by the balls from now on.

leinsterman

I had an accident which was my fault costing around €4,200 in claims. My no claim protection meant that I still have a full NCB ... but this years renewal arrived yesterday and they have applied a risk loading of €300 ... I'm still getting the discount ... but from a higher premium.

I'm not sure if I can move because I'd be surprised if other insurers recognize the NCB protection ... so I'd effectively be starting with a 1 year NCB elsewhere ...

Does anyone know of insurers who might be willing to compete for my business in this particular situation? ... or as the last poster has stated - am I stuck with them for 5 more years!

grogi

annascott wrote: »

Hi
I have car insurance with no claims protection.
Does anyone know if it is really as it says it is, or is there a catch?
I need to make a claim (less than €1,000) and want to know that my premium won't go up. I am due for renewal in December.

It will go up and you'll find that some insurers will not even quote you (Aviva for instance).

The risk is calculated by taking into account various risk factors:
- previous claims
- age, occupation of the drivers /Younger drivers give more trouble. Professional boxers as well /
- driving experience of the drivers /Driver in learning will sky-rocket the premium/
- penalty points, type of driving license (Irish or foreign) /My quotes went down around €100 when I got Irish Driving Licence/
- area where the car is parked and used
- age, type, power of the car /The older and more powerful the car, the more probable it will cause 3rd party claim. MPV are considered safer etc.../
- yearly mileage /More miles - more risk. But very few miles = seasonal driver - more risk again/
- God only knows what else...

The only thing they can't use is the sex.

Based on the risk, the premium is calculated. To that the no-claims discount is applied.

So you will not loose the percentage discount, but you'd be considered riskier.

grogi

unkel wrote: »

Plus the fact that effectively, with a claim, you won't be able to switch to another insurer in the next 5 years. So your current insurer has you by the balls from now on.

Rubbish.

grogi

leinsterman wrote: »

I'm not sure if I can move because I'd be surprised if other insurers recognize the NCB protection ... so I'd effectively be starting with a 1 year NCB elsewhere ...

They are obliged to honour each others certificates. Some will not quote you though.

leinsterman

grogi wrote: »

They are obliged to honour each others certificates. Some will not quote you though.

Great thanks ... my certificate say i have full no claims bonus but with a claim ... so I guess the test will be to make a few calls to see what happens. I'll report back here in case anyone else is in the same situation ...

Does anyone else have experience of this situation? .. as in Insurers who will still be prepared to quote ...

grogi

leinsterman wrote: »

Great thanks ... my certificate say i have full no claims bonus but with a claim ... so I guess the test will be to make a few calls to see what happens. I'll report back here in case anyone else is in the same situation ...

Does anyone else have experience of this situation? .. as in Insurers who will still be prepared to quote ...

Get an insurance quote from AA.

I know the times are different now, but they quoted me €800 when everyone was in area of €2500 a few years back after an eight grand claim.

leinsterman

One question I was also wondering -

Once you do make a claim ... is there any point in continuing to pay for NCB protection?

... I guess this depends on the remaining benefit ... but even if this is some remaining benefit it is now reduced ... so there is an argument that the premium should also be less!

EDIT - premium for NCB protection ... not total premium

grogi

leinsterman wrote: »

One question I was also wondering -

Once you do make a claim ... is there any point in continuing to pay for NCB protection?

Not for the full NCB protection. Typically the Full NCB protection will allow you to make one non-windscreen claim in the period of 3 years (don't confuse it with 3 renewals!) without affecting the NCB. So if you've made a claim in the last three years, the protection will not kick in with the second one.

Of course the salesman will tell you different - but those are the conditions written in paper.

You can still pay for the step-back protection - which is always something...

hognef

unkel wrote: »

Plus the fact that effectively, with a claim, you won't be able to switch to another insurer in the next 5 years. So your current insurer has you by the balls from now on.

Why would that be?

Nody

hognef wrote: »

Why would that be?

Accident = zero NCB bonus which for most companies means 50% discount when maxed out. Hence even if the current company raised the yearly quote it's a quote with 50% discount compared to 0 NCB discount AND a claim against you with another company which is going to raise the premium way up in the sky.

grogi

Nody wrote: »

Accident = zero NCB bonus which for most companies means 50% discount when maxed out. Hence even if the current company raised the yearly quote it's a quote with 50% discount compared to 0 NCB discount AND a claim against you with another company which is going to raise the premium way up in the sky.

I would have to refer you to my post from Today, 10:40...

To Elland Back

grogi wrote: »

They are obliged to honour each others certificates. Some will not quote you though.

No insurer is obliged to accept a NCB cert from another insurer or to allow any discount for claim free driving if they so choose

It has just become an accepted marketing tool which can be kicked in to touch on an individual basis or across their entire portfolio if they decide to do so

grogi

To Elland Back wrote: »

No insurer is obliged to accept a NCB cert from another insurer or to allow any discount for claim free driving if they so choose

It has just become an accepted marketing tool which can be kicked in to touch on an individual basis or across their entire portfolio if they decide to do so

True, I've read about NCB on citizeninformation website and concluded it is regulated by law.

It turns out it is regulated by the market...

To Elland Back

grogi wrote: »

True, I've read about NCB on citizeninformation website and concluded it is regulated by law.

It turns out it is regulated by the market...

It is a regulation that you must be provided with a certificate of your driving record/claims history by your current insurer prior to renewal.

There is absolutely no regulation on insurers having to accept them