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Insurance renewal time, again. I am getting keen prices just over £200 for full comp, sole driver,2 ltr Ford Focus. I haven't had a claim in the last 12 years and I am wondering if it is worth an extra £30, or so, to protect my NCB. What is the received wisdom on this, please?
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As a general rule it is not worth it.
The insurer can simply increase the base premium rather than reduce the No Claims Discount.
What you need to look for is a company that doesn't mind a single accident provided that you meet their other criteria.
So, research until you have the top 3 companies for you as things stand, taking into account the cover you require and the bonus you have. Ignore protected NCB.
Then revisit those three you have chosen, make all your information one year older and include an additional single accident within the last 12 months and see how their premium changes.
That should tell you all you need to know.
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The trouble is, what figure does the discount get taken from? As there is no set fee for insurance they can charge what they like and claim it is 50% less than you would have paid if you didn't have this, that or the other. How do you know?
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Exactly. It's a relic of the pre-computer age when your own personal claims record was about all an insurer knew about you beyond your name and address. The word 'bonus' gives it away as something from the 1960s. Folklore.
Ironically, perhaps, I've had policies for the last eight years or so that have offered me a 'protected' discount at near enough no marginal premium, so I've taken it. Has this protected my entitlement to a discount, despite the two minor claims (both on Mrs Beest's car) in that time? Yes. Has it stopped my premium going up at renewal? No.
So each year I read the renewal letter, spend a wet afternoon doing online quotes, and either take the best or renew when the current insurer remembers that that was the premium they meant to ask for in the first place.
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Its a bit like PPI - you pay for it now, and when you need it find its worth naff all
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I'm with Esure, 75% NCB - if I make 1 claim it falls to 73% - they would undoubtedly increase the premium - protected or not.
Roughly £25 for 2%? The answer is NO!
PS -
Never claimed in 49 years for my own faults - I just paid. Claimed off others 6 x in that time - I have been stationary in 5 of them. Paid out £1500 for my 3 x kids series of minor disasters as the excess always greater than the damage.
PPS
Nearly came a cropper yesterday @ mini roundabout - car on my right signalled left and turned right into my path!
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Odd one out it would appear, i always protect.
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>> Odd one out it would appear, i always protect.
You're not alone. Me too.
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I renewed the bike with Motorcycle Direct last night after being harassed by Swinton for a couple of weeks to renew with them and get the fabulous ' cashback ' deal which brought the price of comp down to £145.
New policy £75 with no cashback ( sob sob ...not ). I clicked the ' amend ' box to see about protected and it made no difference to the price at all....so I did it.
Ted
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Pay 10-15% more so that in the event you claim you don't drop from 60% to 40% (ie. 20% more year 1, and 10% more year 2 after the claim)
Doesn't make good financial sense unless you expect to be claiming every couple of years.
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Slightly off tangent...what do you think about paying extra for 'legal cover'. On my IAM Surety policy they want an extra £18.50 should I renew with them next month.
In the event of an incident which gives rise to a claim, and the other party is at fault, I receive help to recover the policy excess (I thought if it was not my fault I did not have to pay any excess!) recover loss of earnings (I earn very little and pay into a Friendly Society which pays me a small amount when off sick ) help with medical expenses (that's what the NHS is for) and help with 'out of pocket' expenses, whatever that means.
I think the £18.50 would be better spent elsewhere.
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I understand that the car insurers buy 10,000 legal policies as a job lot @£3 each and pass then on @£15 or so.
I buy mine as a stand alone for about £10 and, like protected NCB, I do not know if it represents value for money. I have never had to use either of them!
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Having spoken with my insurer, IAM Surety, they tell me that there is no charge for my protected NCD! So, having deleted the legal fee I've just paid the princely sum of £195 for my fully comp policy. Voluntary excess is a little steep at £250, standard excess is £100, but I probably wouldn't claim for less than £500 anyway.
Job sorted for another year.
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>>Voluntary excess is a little steep at £250, standard excess is £100,
What discount did the increased excess get you? If it was, say, 10% then you saved £20 by taking the risk of having to spend £150.
So, as long as you don't have an accident which is your fault in the next 7 years then that would be a good deal.
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>>what do you think about paying extra for 'legal cover'.
It depends. They can be helpful, but they can get in the way. Equally the do increase the cost of everything.
On the good side should you have an accident that is not your fault they will write all the letters and do all the admin for you. They will usually know who the inspectors are, which repairers to use and where to get a temporary replacement car.
They will also do low level pursuit of your losses, rarely as far as court.
On the downside you may have got your car repaired more quickly, at a repairer that you prefer and may have got your expenses settled more quickly without them bogging stuff down.
Emotionally they annoy me so I don't take it, which is not the best reason. If you are generally comfortable with doing admin type stuff and letters, and also would have the time to do so then perhaps there is no need for the insurance. If not, or you would rather not, then perhaps you are better to take the cover.
Having decided to take it then you need to decide how much and which one to take. I;m out of touch, personal recommendation is the way to go.
On your specific points;
Your excess is uninsured. If the claim is your fault then you're stuck with it. If the claim is not your fault then you may be able to recover it from the other party. Can be an administrative pain.
The importance of Loss of earnings would rather depend on how long you were out of action. Whatever you earn, less is still less - especially if you rely on your salary.
Medical expenses can cover stuff which the NHS will not pay for. Ongoing physio for example. Medical certificates can be another example. Equally travelling to and from the hospital is a medical expense in these terms.
Out of pocket expenses could be buses, telephone calls, and the like.
£18:50? I dunno, doesn't sound bad to me.
Would a month without pay and a third party who doesn't want to cough up be a disaster or something you could take on the chin?
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>> Would a month without pay and a third party who doesn't want to cough up be a disaster or something you could take on the chin?
Is that all the legal cover covers? I'd always assumed that it might have other uses, so pay it for the sake of not having to appoint a firm of solicitors, rather than not having to pay their bill.
Meanwhile my excess is £1,000. On a car worth maybe £2,500.
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I am now sure, I still have my NCB so still have 5 years no claims discount. If I didn't have NCB I would have lost the lost. My accident has put up my premiums by about 25% but the real difference is about £12 a month.
If I didn't have NCB, I doubt I would now be able to get insurance for about £600 including full business cover etc etc and a low excess.
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If you go to another insurer they care not a jot what percentage you are currently being offered and whether or not it is protected.
They ask two questions; how many years claims free? and how many claims?.
They take your driving record and award what they would give if you had been theirs all along.
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>>Is that all the legal cover covers?
No, but if one differentiates between a disaster and a bad thing, then it seems to me that loss of earnings can be that difference.
One might be prepared to live without recovering a £250 excess, but could one survive if you lost your livelihood for a period of time? And if you're so ill you can can't go to work, are you in a fit state to pursue a claim?
Essentially in the event of an incident where one suffers loss but is not at fault, then the legal assistance will help. That loss could be your excess, income, other expenses, replacement car etc. etc.
It does not do anything that you are unable to do, but it does it on headed paper with some knowledge of its market and some reputation. Thus if there is no issue, then they are offering nothing other than an admin service. Where there is some disagreement then their reputation, knowledge, experience and headed paper can swing the odds towards you.
They rarely would pursue something through the courts.
At £18, assuming that the policy/company are reasonable, then it would seem worthwhile to me - even just for hassle removal.
For the most part the excess is really only relevant when its your fault, since then it is a flat loss to you. Only you can assess the impact of that.
The rest of the time people usually get it back.
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Protected NCB -worth it or not? - Lygonos
