Quote:
Originally posted by rcgbob44
I had a 60% protected NCD then went and had a minor prang. When it came to renewal time my premium doubled, I phone the insurance company and enquired as to why I was paying so much with a protected NCB and was told that it was still protected but it was there policy to load the premium so as to re coup there losses!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
WHY....Explain someone! |
Basically, the insurers see the No Claims Discount as a completely seperate entity to the premium itself...If you make a claim, the premium goes up - the NCD just decides what percentage of the premium you actually pay. Looking at a year in isolation, the protected option might look like a waste of money but, if you don't take it, there is a "triple whammy":
1/ Your base premium goes up
2/ Your discount goes down (compounding step 1)
3/ You have a reduced discount for more than one year (compounding steps1 & 2)
At the end of the day, your insurance company just wants you to pay them lots of money and not make any claims...seems reasonable enough
