Car insurance

[Cider]

9+ years no claims, always been protected, any point? what diff would it make to me if i took out unprotected no claims, apart from the price would be less, what are the implications to haveing ur no claims unprotected?

[paraffin]

Hi Cider:

Would I be right in guessing that you've never had to claim? The reason I ask is that you surely would realise that had you made a claim when your insurance is protected, you would find out come renewal time that your premium would be increased fairly significantly.

The so called benefits of protected insurance is that you're allowed to make a certain amount of claims within a specified period without your no claim bonus being affected.

The downside, however, is as I've already mentioned that should you do so, you'll certainly "pay" come renewal time. The insurance companies don't normally labour this point, they just trumpet the "no loss of no claims bonus" part.

It's a swings and roundabouts situation, i.e. "just in case", like any type of insurance. A necessary "evil"?

[kempie]

The explanation by paraffin seems to have ignored how the loss of NCD affects your premium. If after a claim on a protected NCD the premium renewal cost is "increased fairly significantly" then on an unprotected NCD the renewal would be increased dramatically.

NCD protection is generally around 10-15% of the premium. The best way of describing the benefit or otherwise of NCD protection is by example:

Let us say a driver has maximum NCD (e.g. 60%) and pays �400 for his policy (i.e. pre NCD premium = �1000). Let us also say his NCD protection costs �50 and operates in the manner 1 claim - no change; 2 claims - NCD drops to 45%; 3 claims - NCD drops to 0%.

After 1 claim the �450 (protected) policy would likely require renewal at �450 + yearly increase (inflation and loading or whatever insurers choose to attribute such increases), whereas the �400 (unprotected) policy would likely require renewal at �1000 + yearly increase.

Even after 2 claims the �450 (protected) policy would likely require renewal at �600 (45% NCD + �50 protection) + yearly increase, which is still around �400 cheaper than the �1000+ unprotected policy renewal.

[paraffin]

kempie:

I don't feel the need to insult anyone's intelligence, hence the reason why my reply to Cider "ignored" the blindingly obvious, i.e the fact that unprotected NCD premiums would also be increased following any claim(s). Eggs, suck, teach etc?

[kempie]

paraffin - I answered the question as asked and my reply is no more insulting to anybody's intelligence than that of yours.

Pot, kettle, black etc.

[paraffin]

As patronising and condescending as ever, kempie.

[kempie]

Pot, kettle, black etc.

[paraffin]

At least, kempie, I don't tell barefaced lies.

[NORMANTHEDOG]

parafin,you are a prick sometimes.