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When bonus protection doesn't protect bonus.

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  • 16-02-2017 9:26pm
    #1
    emeldc
    Registered Users Posts: 2,597 ✭✭✭


    So my wife got her insurance renewal quote today. There were some changes to the T&C's. Below is one of them. I've highlighted the bit I can't get my head around.

    'No claims bonus protection.
    The wording in relation to the no claims bonus protection has been updated to:
    You can pay an extra premium for a protected no claims bonus extension if you have earned a no claims bonus of four years or more. You will keep that no claims bonus as long as no more than one claim arises during the period of insurance for which the extra premium applies. Although you can protect your no claims bonus, your premium may still be affected by any claims we pay'


    Explain please


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    #2
    blindside88
    Registered Users Posts: 1,968 ✭✭✭blindside88


    This is standard on all policies. Basically what it means is your no claims bonus will not be affected but your premium may be loaded because of a claim.
    In simple terms. Say your policy this year has a basic price of €1000, you have a full ncb which gives you a 50% discount bringing your price down to €500. You then have a small accident and claim

    Next year your basic premium is €1000, they load your policy by 20% because of the claim bringing it to €1200 but you still have your 50% ncb which brings the price down to €600.

    That's a fairly basic example of how it would work. Hope that makes sense to you


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    #3
    punisher5112
    Registered Users Posts: 24,644 ✭✭✭✭punisher5112


    As above they can still load you if you claim.

    They will try and recoup monies paid out.


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    #4
    GhostyMcGhost
    Registered Users Posts: 1,348 ✭✭✭GhostyMcGhost


    So in effect it's not worth the paper it's written on?

    Insurance companies can make it up as they go along like they're doing now?


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    #5
    emeldc
    Registered Users Posts: 2,597 ✭✭✭emeldc


    So in effect they can double the base premium and the subtract your bonus meaning the bonus in effect is worthless. What an absolute con.


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    #6
    punisher5112
    Registered Users Posts: 24,644 ✭✭✭✭punisher5112


    emeldc wrote: »
    So in effect they can double the base premium and the subtract your bonus meaning the bonus in effect is worthless. What an absolute con.

    Hasn't really changed to be honest.

    Like what's happening now people getting premiums at 200 to 300 % higher. Nothing changed and safe driving etc.


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    #7
    TheUnderfaker
    Registered Users Posts: 275 ✭✭TheUnderfaker


    Would you retain your NCB if you moved to a different insurer?


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    #8
    punisher5112
    Registered Users Posts: 24,644 ✭✭✭✭punisher5112


    TheUnderfaker wrote: »
    Would you retain your NCB if you moved to a different insurer?

    Quite likely no as you will have to tell them you have claimed.


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    #9
    TheUnderfaker
    Registered Users Posts: 275 ✭✭TheUnderfaker


    punisher5112 wrote: »
    TheUnderfaker wrote: »
    Would you retain your NCB if you moved to a different insurer?

    Quite likely no as you will have to tell them you have claimed.
    I think I'll put NCB protection somewhere close to the top of my list of things I'm never gonna buy so!


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    #10
    punisher5112
    Registered Users Posts: 24,644 ✭✭✭✭punisher5112


    TheUnderfaker wrote: »
    I think I'll put NCB protection somewhere close to the top of my list of things I'm never gonna buy so!

    Don't get me wrong it can be good but as above mentions it can be worthless.

    Very much depends on claim and how that certain company deals with such.

    They are very good at selling oh look you get breakdown, glass etc. But there can be stipulations with them all.


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    #11
    blindside88
    Registered Users Posts: 1,968 ✭✭✭blindside88


    TheUnderfaker wrote: »
    I think I'll put NCB protection somewhere close to the top of my list of things I'm never gonna buy so!

    You can bring the ncb with you to another company. Personally I find it to be an excellent benefit. Last year my wife made ****e of 2 doors against a granite kerb, she claimed roughly €2k if I remember correctly. Premium went up by about €100 the following year. Without bonus protection her price would have doubled


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    #12
    punisher5112
    Registered Users Posts: 24,644 ✭✭✭✭punisher5112


    blindside88 wrote: »
    You can bring the ncb with you to another company. Personally I find it to be an excellent benefit. Last year my wife made ****e of 2 doors against a granite kerb, she claimed roughly €2k if I remember correctly. Premium went up by about €100 the following year. Without bonus protection her price would have doubled

    New insurer in your case did but a lot don't and of course will load as there has being a claim.


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    #13
    emeldc
    Registered Users Posts: 2,597 ✭✭✭emeldc


    We need to be told how they apply the scale of increases to the base premium in relation to the size of the claim. Only then can we work out if its worth making a claim at all in the first place. There's no point in making a claim for a few thousand if you're going to pay it back in the next few premiums.
    By the way these are changes to the t&c's. They weren't there last year.


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    #14
    blindside88
    Registered Users Posts: 1,968 ✭✭✭blindside88


    punisher5112 wrote: »
    New insurer in your case did but a lot don't and of course will load as there has being a claim.

    Once you have a no claims bonus cert every insurer must take it. I worked in the insurance industry for 6 years but haven't for the past 2 years


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    #15
    emeldc
    Registered Users Posts: 2,597 ✭✭✭emeldc


    blindside88 wrote: »
    Once you have a no claims bonus cert every insurer must take it. I worked in the insurance industry for 6 years but haven't for the past 2 years

    So if you have FBP do they still issue a NCB even if you've had a claim.


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    #16
    blindside88
    Registered Users Posts: 1,968 ✭✭✭blindside88


    emeldc wrote: »
    So if you have FBP do they still issue a NCB even if you've had a claim.

    Yep but you still have to declare the claim to the new insurer


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    #17
    punisher5112
    Registered Users Posts: 24,644 ✭✭✭✭punisher5112


    blindside88 wrote: »
    Once you have a no claims bonus cert every insurer must take it. I worked in the insurance industry for 6 years but haven't for the past 2 years

    What's the 1st thing any insurer asks... Have you any outstanding or previous claims.

    They may well quote but the price will be much higher then if there were no claim. I'm sure they done that when you were there.


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    #18
    emeldc
    Registered Users Posts: 2,597 ✭✭✭emeldc


    blindside88 wrote: »
    Yep but you still have to declare the claim to the new insurer

    So the NCB will be next to worthless. You couldn't make this sh1t up.


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    #19
    blindside88
    Registered Users Posts: 1,968 ✭✭✭blindside88


    emeldc wrote: »
    So the NCB will be next to worthless. You couldn't make this sh1t up.

    No it is still worth the same % discount. In my case the premium went up by roughly €100 for a €2k claim so as far as I'm concerned is excellent value for money


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    #20
    blindside88
    Registered Users Posts: 1,968 ✭✭✭blindside88


    punisher5112 wrote: »
    What's the 1st thing any insurer asks... Have you any outstanding or previous claims.

    They may well quote but the price will be much higher then if there were no claim. I'm sure they done that when you were there.

    That's correct, if you have had a claim it affects your risk rating which drives your price up, the fact you then have a ncb brings your price down so the rise in price is still significantly less in my experience


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    #21
    dev100
    Registered Users Posts: 1,002 ✭✭✭dev100


    blindside88 wrote:
    No it is still worth the same % discount. In my case the premium went up by roughly €100 for a €2k claim so as far as I'm concerned is excellent value for money

    I thought so to!!!! in my case I reared end a car caused 1.5K to my own, 2K to the other car . My insurance went up from 450 by 100 Euro first year aft accident and then 4 years later they hit me for 1100 Euro .


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    #22
    Liberty Insurance: Sean
    Company Representative Posts: 235 Verified rep ✭Liberty Insurance: Sean


    emeldc wrote: »
    So my wife got her insurance renewal quote today. There were some changes to the T&C's. Below is one of them. I've highlighted the bit I can't get my head around.

    'No claims bonus protection.
    The wording in relation to the no claims bonus protection has been updated to:
    You can pay an extra premium for a protected no claims bonus extension if you have earned a no claims bonus of four years or more. You will keep that no claims bonus as long as no more than one claim arises during the period of insurance for which the extra premium applies. Although you can protect your no claims bonus, your premium may still be affected by any claims we pay'


    Explain please
    Hi Emeldc
    When No Claims Bonus Protection is purchased on a private motor policy with us, the number of years No Claims Bonus you have earned will not be affected by any one claim that occurs during the year.  This means that, after a claim on your policy, your entire No Claims Bonus discount is still applied to your renewal premium.  The renewal premium may however be impacted as a result of the final claim amount we have paid.  No Claims Bonus Protection is a protection of the number of years No Claims Bonus you have earned, rather than a protection of your premium.
    Regards 
    Seán


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    #23
    emeldc
    Registered Users Posts: 2,597 ✭✭✭emeldc


    Liberty Insurance: Sean wrote: »
    emeldc wrote: »
    So my wife got her insurance renewal quote today. There were some changes to the T&C's. Below is one of them. I've highlighted the bit I can't get my head around.

    'No claims bonus protection.
    The wording in relation to the no claims bonus protection has been updated to:
    You can pay an extra premium for a protected no claims bonus extension if you have earned a no claims bonus of four years or more. You will keep that no claims bonus as long as no more than one claim arises during the period of insurance for which the extra premium applies. Although you can protect your no claims bonus, your premium may still be affected by any claims we pay'


    Explain please
    Hi Emeldc
    When No Claims Bonus Protection is purchased on a private motor policy with us, the number of years No Claims Bonus you have earned will not be affected by any one claim that occurs during the year.  This means that, after a claim on your policy, your entire No Claims Bonus discount is still applied to your renewal premium.  The renewal premium may however be impacted as a result of the final claim amount we have paid.  No Claims Bonus Protection is a protection of the number of years No Claims Bonus you have earned, rather than a protection of your premium.
    Regards 
    Seán
    So if I have a claim, is there a maximum figure that you will pay out before you start loading the base premium.


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    #24
    Liberty Insurance: Sean
    Company Representative Posts: 235 Verified rep ✭Liberty Insurance: Sean


    emeldc wrote: »
    Liberty Insurance: Sean wrote: »
    emeldc wrote: »
    So my wife got her insurance renewal quote today. There were some changes to the T&C's. Below is one of them. I've highlighted the bit I can't get my head around.

    'No claims bonus protection.
    The wording in relation to the no claims bonus protection has been updated to:
    You can pay an extra premium for a protected no claims bonus extension if you have earned a no claims bonus of four years or more. You will keep that no claims bonus as long as no more than one claim arises during the period of insurance for which the extra premium applies. Although you can protect your no claims bonus, your premium may still be affected by any claims we pay'


    Explain please
    Hi Emeldc
    When No Claims Bonus Protection is purchased on a private motor policy with us, the number of years No Claims Bonus you have earned will not be affected by any one claim that occurs during the year.  This means that, after a claim on your policy, your entire No Claims Bonus discount is still applied to your renewal premium.  The renewal premium may however be impacted as a result of the final claim amount we have paid.  No Claims Bonus Protection is a protection of the number of years No Claims Bonus you have earned, rather than a protection of your premium.
    Regards 
    Seán
    So if I have a claim, is there a maximum figure that you will pay out before you start loading the base premium.
    Hi Emeldc
    Could you DM me with your wife's policy number and we will look into this for you.
    Seán


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    #25
    emeldc
    Registered Users Posts: 2,597 ✭✭✭emeldc


    Liberty Insurance: Sean wrote: »
    emeldc wrote: »
    Liberty Insurance: Sean wrote: »
    emeldc wrote: »
    So my wife got her insurance renewal quote today. There were some changes to the T&C's. Below is one of them. I've highlighted the bit I can't get my head around.

    'No claims bonus protection.
    The wording in relation to the no claims bonus protection has been updated to:
    You can pay an extra premium for a protected no claims bonus extension if you have earned a no claims bonus of four years or more. You will keep that no claims bonus as long as no more than one claim arises during the period of insurance for which the extra premium applies. Although you can protect your no claims bonus, your premium may still be affected by any claims we pay'


    Explain please
    Hi Emeldc
    When No Claims Bonus Protection is purchased on a private motor policy with us, the number of years No Claims Bonus you have earned will not be affected by any one claim that occurs during the year.  This means that, after a claim on your policy, your entire No Claims Bonus discount is still applied to your renewal premium.  The renewal premium may however be impacted as a result of the final claim amount we have paid.  No Claims Bonus Protection is a protection of the number of years No Claims Bonus you have earned, rather than a protection of your premium.
    Regards 
    Seán
    So if I have a claim, is there a maximum figure that you will pay out before you start loading the base premium.
    Hi Emeldc
    Could you DM me with your wife's policy number and we will look into this for you.
    Seán
    PM sent


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    #26
    flexcon
    Registered Users Posts: 1,621 ✭✭✭flexcon


    emeldc wrote: »
    So in effect they can double the base premium and the subtract your bonus meaning the bonus in effect is worthless. What an absolute con.
    As far as I know, it still works out better. So to protect the NCB it is around €100 a year for myself. 

    If I had a claim and the loading was an extra €400 ( from all insurers as I had an accident ) then my policy will increase by said €400. however, since I have my no claims bonus and it is in percentage, it actually still knocks off a few hundred. 

    In the long run it may cost more, but would take around 8 or 9 years for it to be more expensive to get no claims protection than without.

    Using simple math of course on this one


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