To claim or not to claim?

54and56

Hi,

I've a VW Touareg on fully comprehensive with FBD Insurance and no claims in over 25 years of driving.

I've a €700 excess and paid for the "no claims discount protector" option.

The policy handbook states the following:-

No claim discount protector
Your no claim discount will not be affected by a claim insured under:
• Fire and theft cover,
• Section 2 – Uninsured driver protection,
• Section 3 – Windscreen and window glass cover, or
• Section 3 – Breakdown assistance cover.

Any other claim including liability to third parties and damage to the insured car, will mean your no claim discount is impacted in line with our No claim discount protector rules:

1. The level of no claim discount granted under your policy will not be reduced as a result of a single claim within a two-year period of insurance (24 months).

2. If you have a second claim in this period, your no claim discount will be reduced as follows:
• 75% back to 65%
• 70% back to 65%
• 65% back to 65%

3. If you have a third claim in this period, your no claim discount will reduce to zero.

I had a prang with a car park bollard (my fault no one else involved) which is going to require a new door and body spraying to match the rest of the car etc. Ballpark €1,600 with an independent body shop (including purchasing a new door from VW) or likely >€2,000 if I go via VW or an approved body shop.

The question I have, which I can't figure out from the policy wording, is whether or not I should claim the repair under my insurance policy? The wording above is somewhat ambiguous to me and the way I'm reading it is the No Claim Discount Protector only really protects against fire & theft, uninsured drivers, windscreens and breakdown assistance. "Any other claim including liability to third parties and damage to the insured car, will mean your no claim discount is impacted in line with our No claim discount protector rules".

Can someone tell me if I'm reading the policy correctly?

Given I have an excess of €700 anyway am I just better off not claiming this at all and swallow the additional €900 or should I go ahead and make the claim?

What I don't want to do is effectively claim €900 but end up paying a multiple of that in higher premiums over the coming years as I'll now have a claim on my record.

Would appreciate some input from those of you with industry or personal experience.

Eggs For Dinner

If this is your only claim in a 2 year period, your bonus will be unaffected with your current insurer
You will be subject to a €700 excess
The claim will have to be disclosed to alternative insurers if you are seeking quotes and whatever consideration they give to this claim is at their own discretion

54and56

Eggs For Dinner wrote: »

If this is your only claim in a 2 year period, your bonus will be unaffected with your current insurer
You will be subject to a €700 excess

Thanks EFD, I get that that's the principle of how the bonus will be protected but I'm concerned the reality is a bit like some of the "50% off" sales you see in the shops where the shop simply increases the "retail" price to a silly number so that 50% looks appealing but is in fact still a higher price than you would otherwise get if you just shopped around normally. In practice won't FBD just increase the pre bonus renewal quote to effectively hike up my premium to reflect the claim?

Eggs For Dinner wrote: »

The claim will have to be disclosed to alternative insurers if you are seeking quotes and whatever consideration they give to this claim is at their own discretion

100% and I will do if I make the claim but thisisthe other reason I'm reluctant to claim for just €900 as it effectively locks me into FBD for the next few years which in conjunction with the first point makes me think I'll end up paying a lot more than €900 in the long run due to increased premiums one way or another.

Eggs For Dinner

Every insurer can increase (or reduce) its base rate at renewal and your policy will be no different. They are not going to apply a penalty loading for something like this

As for what other insurers do, that is an unknown. Some allow for 1 previous claim in a 3 year period at normal rates, some will allow you a full NCB because you had it protected, others will disallow it all together. It is wrong t say a settled claim locks you to your current insurer.

54and56

Eggs For Dinner wrote: »

Every insurer can increase (or reduce) its base rate at renewal and your policy will be no different. They are not going to apply a penalty loading for something like this

I guess I'm a cynic EFD but I can't help feeling that's exactly what they would do. Is €900 worth taking the risk for? That's the question I'm asking myself.

august12

I have protected no claims on my policy, made a claim from it and my policy hasn't increased by much, only the standard increases which have affected most policies i.e. additional levies etc, you will be tied to this insurer alright if you make a claim because even though your no claims is protected, the claim is noted on the documents issued to you at renewal if you wish to change to another insurer, in saying that, for 900 euro I would be claiming from the insurance company.

54and56

Thanks August12, I've been paying for protected NCB for years so I guess I might as well use it.