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Car Insurance: likely impact of losing my 3 year NCB?

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  • 18-02-2014 11:54am
    #1
    CamillaRhodes
    Registered Users Posts: 505 ✭✭✭


    Hi guys, I had a minor incident with another car recently (my fault) and the repairs to the other car will come to €950 (bloody garages, it only looks like a slightly dented wing, but I digress).

    My car insurance is currently around €650 p/a for me (age 33, full licence for 7 years) and my husband (age 31, provisional licence). I have a 3 year NCB. My insurance excess is €250.

    I'm wondering whether the impact of losing my NCB would end up costing me more in the long-run than just paying the €950 in cash. (I don't have NCB protection until I go past 3 years, so I basically have none). Does anyone have any advice / suggestions?


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    #2
    oldyouth
    Closed Accounts Posts: 4,754 ✭✭✭oldyouth


    A 3 year NCB is probably worth about 30% of a discount, so the approx maths would be as follows

    At the moment, base premium is €928 -30% = €650
    Next year = €928
    Following year €928 - 10% = €835
    Subsequent year €928 - 20% = €743
    And so on.

    Big thing to remember is that above assume no rate increases and secondly, lack of NCB may affect more competitive insurers offering you a quote


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    #3
    CamillaRhodes
    Registered Users Posts: 505 ✭✭✭CamillaRhodes


    Thank you so much, very helpful response. Sounds like, even with a possible rate increase, I'd still probably be better putting it through the insurance and paying the €250 excess and 30% premium increase, rather than paying €950 now; would you agree?

    (I'll essentially end up paying the €950 anyway, but it'll be spread over three years rather than upfront now...)


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    #4
    oldyouth
    Closed Accounts Posts: 4,754 ✭✭✭oldyouth


    The advice on that one is really subjective. If you can spare the €950, I'd pay it myself, providing you are 100% sure no injury claim will follow. If you haven't got the money, that's what you pay insurance for.

    I'm not saying it is going to happen, but if insurers start increasing premiums across the board, I'd want as much NCB under my belt to shop around for alternative insurers


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    #5
    CamillaRhodes
    Registered Users Posts: 505 ✭✭✭CamillaRhodes


    Gotcha. While I don't have €950 burning a hole in my pocket, I think I'd feel more comfortable just paying it now and having the matter over with (I'm 99% sure there couldn't be an injury claim) rather than have it hanging over us until our next renewal and then possibly seeing our premium skyrocket. Glad to have pursued this line of thought anyway, thank you so much for your advice!


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