i, about to take insurance with sky insurance, they wont be protecting my ncd, in the event something happens will this be an issue in the long run?

Umm...yes? NCB is what brings your premium down. So if you stack it and lose it as it's not protected, then you'll be back to square 1 with a massive premium. If you don't mind that then I guess go for it...personally I would always only go for PNCB...

Just means, that if something happens, you will lose your NCB, instead of still having it.

However, when quoting for new insurance they always ask if it was protected or not and the premium is higher if you're carrying over a 'protected' no claims...I've never protected mine for this reason and benefited from lower premiums in the long run...Depends on what you value the risk at....

Always protect it IMO.....

 

....the extra premium is not usually that much more compared to losing your NCB altogether. And no matter how careful a driver you think you may be, anyone can have an accident. And in today's world of personal injury matters and fraudulent claims, who knows what's around the corner.

 

Protect it Indy - don't take the risk mate; it's taken you years to build up!!

 

Richard:cool2:

All companies are different but if you have a crash and you have say, 7 years unprotected you may lose 3 years but you shouldn't lose it all. If you are protected, then they allow you 1-2 claims "free".

 

As I said though, not set in stone and besides, if you have a claim your premium will still go up. You may still get the same discount for your NCB but that discount now comes off a higher premium.

More insurance stuff ... .lol

 

Basic run down, PNCB/D is a scam! You pay extra insurance to protect the thing that brings your insurance down, but the thing is, insurers rate your premium based on your risk, if you've had a claim, that risk goes up, if the claim was your fault, it goes up more, the more the claim cost (Including Personal Injury claims others make against you) the more it goes up etc etc etc.

 

Structure of NCD and how you can lose it and where:

 

NCD only gets you a discount up to 5 years (VERY few insurers do allow 6 or 7 but you get like 1% for each year), however more insurers will let you say you have up to 9 years for EGO purposes. If you have a claim and you have not protected your no claims, you will lose two years NCD, STARTING AT 5 YEARS, i.e. you have 9 years and claim, you're down to 3, not 7. Protecting it will mean the insurer will let you claim twice in three years and still issue proof of whatever no claims bonus you have on the policy at the end of it, however, the next years insurance will be rated on those claims regardless, and the NCD itself, doesn't discount the whole premium, only part of it and the insurer rates the risk against the policy so as to make the most profit out of the risk.

 

How insurance is generally rated:

 

Base Premium for ALL customers = £1000

Customer has 5 years NCD = 70% (This is a best case percentage, some offer less)

Base - NCD% = £300

 

Customer address = Medium Risk --- Add 20% to current premium

£300 + 20% = £360

 

2nd Driver aged 18 = HIGH HIGH RISK ----- Add 120% to current premium

 

etc.etc.etc.

 

 

Move the percentages and ratings around, and you get completely different figures. Your NCD typically comes off the base premium for the insurance, in the scenario above, the £1000 starting price.

 

So you see, NCD is helpful, however the premium you pay to protect it, plus the amount your premium goes up the next year after you've had a claim anyway usually means you may as well just take the risk and not bother. By the time you've protected your NCD for 3 years and had a single claim, you've paid more for your insurance trying to pay less, than if you'd just carried on without it.

 

Hopefully that makes sense, I'm not going to take you all on a 6 month underwriting course but that's the raw and dirty basics of it. lol

A well informed and insightful post. Nice one HollowPoint.

I started training as an underwriter for Direct Line when I was 18/19, then went into IT and now work as the IT manager and lead Software Developer for an insurance company lol.

Wish i'd have known this before. I protected my ncb but had a no fault claim, van was broken into, damaged and 3k worth of tools stolen!! They wrote the van off, gave me a grand less than it was worth and my insurance went up a couple of hundred quid. The tools weren't covered either!!!!!

I work as a classic insurance broker and agree completely with hollowpoint. Protecting no claims is a waste of money as you still have to declare any claims which you've had which bumps your premium right up. I've got a limited mileage policy on mine which doesn't accrue no claims as it's a second car and my premium (before staff discount) was £218 with my 26 year old bird on the policy

I work as a classic insurance broker and agree completely with hollowpoint. Protecting no claims is a waste of money as you still have to declare any claims which you've had which bumps your premium right up. I've got a limited mileage policy on mine which doesn't accrue no claims as it's a second car and my premium (before staff discount) was £218 with my 26 year old bird on the policy

 

Who do you work for? My Zed insurance is due for renewal tomorrow :crying:

Daffy. Don't think I can say on here as it's not the club scheme. Maybe if one of the committee could drop me an email (i've registered with my work email addy) I could look at a further discount scheme for members.

Edited March 24, 201114 yr by RichardS

Cool. From what i found, it has to be garaged and non import. This true?

Has to be garaged and a second car but mines a JDM Series 2....oh and i'm now in trouble...she's 25 not 26...ooops!! :D

I won't recommend my company for a discount scheme for members, simply because our kind of car doesn't fit the criteria we're insured to insure.

 

Yes insurance companies have to be insured as well, it's called a re-insurance treaty. Hence specialist insurance existing, you have to declare the type of drivers, vehicles and areas you are going to target and insure, so we're not really rigged for under 40's that drive 3.0 Twin Turbos lol.

I won't recommend my company for a discount scheme for members, simply because our kind of car doesn't fit the criteria we're insured to insure.

 

Yes insurance companies have to be insured as well, it's called a re-insurance treaty. Hence specialist insurance existing, you have to declare the type of drivers, vehicles and areas you are going to target and insure, so we're not really rigged for under 40's that drive 3.0 Twin Turbos lol.

 

Fair point mate :)

 

We ONLY insure classics so our loss ratios are quite attractive. I have just changed the criteria for 300ZX's (as i've just bought one) from being classed as a classic car at 20 years old to being classic at 10 years old. Now lets see what happens to loss ratios :D

lol I'm seriously considering putting mine on classic insurance if I take it off the road and restore it, because then it'll be a pleasure car, not a daily driver. Still undecided on the whole break or restore thing though.

Gotta be restore all the way. They're not THAT rare yet...but give it 10 years and then think about all the cars have been broken and scrapped. I belong to quite a few classic clubs and some of them would literally shoot you for even thinking about breaking up a motor for bits!! Obviously there's got to be some breaking done to maintain a flow of parts....but if it's salvageable....restore it. You'll regret it one day if you don't ;)

Yeah I do agree, unfortunately I've got more to consider :(

 

I am quite a big Capri lover, had one as my second car at 18, then another later in life, wish I hadn't sold either of them now. Looking around trying to buy one now that actually runs and is MOT'able is a nightmare for less than about £3000 :O

 

Hopefully our situation will stabilise and we can keep it.

Yeh, all of the above is based in an ideal world.

 

You might be asking alot for that. There's a couple of 2.8i's on eBay at the minute fetching silly money. My Claims Manager has got a beautiful Mk3 3.0s but that's probably close to £7k or £8k's worth...absolute minter :)

Daffy. Don't think I can say on here as it's not the club scheme. Maybe if one of the committee could drop me an email (i've registered with my work email addy) I could look at a further discount scheme for members.

 

 

I've sussed your secret ID Dave - you guys sponsor the Classic Car Show at the NEC every year, if I'm not mistaken.

 

Best say no more about that at the moment though; especially as you're still an unsubbed member. However might I suggest you send an e-mail to our traders liaison officer - Brian AKA Znut - to discuss the matter.

 

znut@300zx.co.uk

 

Richard:chef:

Richard. Many thanks for that and yes, you've busted me wide open!! In a totally non-sexual way of course lol :D

 

Unsubbed will be sorted this weekend when i pick up the new JDM TT. I'll drop an email to Brian tomorrow when i'm back in the office and hopefully we can get some discounts in place.

 

Look forward to meeting some members at the shows :)

Back to the original question though....

 

....and that's a good insight into how premiums are calculated from those in the trade. However I would still actually enquire into just how much extra it costs to protect your NCB before dismissing it.

 

With my everyday policy the increase in premium is barely £10. I'm 41 with full NCB; driving for 24 years and only 1 fault claim back in 2004 (plus 1 non-fault in 2008); clean licence - and I only pay £308 FC to insure a £30k Merc SLK350!! Peanuts I reckon......

 

Richard:cool3:

I think Hollowpoint summarised the whole protected NCB/D system perfectly.

 

And tbh i work in the world of classics where NCD doesn't really come into things so will bow to his superior knowledge in that arena.

 

And tbh i work in the world of classics where NCD doesn't really come into things so will bow to his superior knowledge in that arena.

 

For a tenner i'd stick with protecting it. Assume you had an 'at fault' claim in the Merc now. Your current policy is, for arguments sake, £900 minus discount of 60% giving you your price of £308.

 

Next year your policy would cost £1600 because of the claim minus whatever....if you protected your bonus 60%.....if you didn't 40%.

I'm in the same boat as Richard, my DD insurance is a tad over £200, I think my NCBP was about £15 of that. For me it seems worth the £15.

My Zed is on a pre-classic policy so doesn't benefit from NCB, so no dilema :)