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No Claims Bonus Protection

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  • 03-03-2021 1:50pm
    #1
    Cape Clear
    Registered Users Posts: 2,653 ✭✭✭


    A scam or worth paying this every year on car insurance?


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    #2
    Eggs For Dinner
    Registered Users Posts: 2,982 ✭✭✭Eggs For Dinner


    Cape Clear wrote: »
    A scam or worth paying this every year on car insurance?

    Well worth it IMO


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    #3
    biko
    Registered Users Posts: 81,220 ✭✭✭✭biko


    It may not be worth it for everyone but it's not a scam.


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    #4
    Cape Clear
    Registered Users Posts: 2,653 ✭✭✭Cape Clear


    biko wrote: »
    It may not be worth it for everyone but it's not a scam.

    According to my current motor policy a premium can still increase due to claims paid so I would question it's value tbh.


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    #5
    biko
    Registered Users Posts: 81,220 ✭✭✭✭biko


    NCB protection means you keep your NCB years even if there is a claim.
    It doesn't mean premium won't increase due to claims.

    Let's say you have 6 years NCB and someone makes a claim against you.
    With no protection you lose those 6 years, which means you start over from 0 again, which in turn means no discounts for NCB years.

    There are also a tonne of caveats from the insurer to make sure that they never lose out so it's worth asking them about the small print before signing up.


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    #6
    Eggs For Dinner
    Registered Users Posts: 2,982 ✭✭✭Eggs For Dinner


    Cape Clear wrote: »
    According to my current motor policy a premium can still increase due to claims paid so I would question it's value tbh.

    If you have a (significant) claim would you prefer an increased premium with or without a bonus?


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    #7
    Cape Clear
    Registered Users Posts: 2,653 ✭✭✭Cape Clear


    Eggs For Dinner wrote: »
    If you have a (significant) claim would you prefer an increased premium with or without a bonus?

    Obviously with a discount but I'm asking is the value of having bonus protection simply erased by an increased premium following a claim.

    The example in the below article would suggest it is.

    https://www.theguardian.com/money/2015/jun/01/no-claims-discounts-drivers


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    #8
    biko
    Registered Users Posts: 81,220 ✭✭✭✭biko


    It's probably a good idea for people with many years NCB.
    If it's worth it? Do the math and decide.


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    #9
    beanhead
    Registered Users Posts: 233 ✭✭beanhead


    Cross-linking a good post here on this topic.

    Did some checking into this as I had a smallish but expensive (€800 - rear bumper broken & lwr plastic crushed) prang against an out of sight low pillar. costed in painters with new replacement panels.

    https://www.boards.ie/discussion/comment/111764600#Comment_111764600

    https://www.aviva.ie/blog/driving/ncd-explained/

    However, it is important to know that the protection of your NCB is not transferable between insurers. If you have a fully protected NCD with your current insurer but have made a claim, a new insurer will only grant you the benefit of a NCD which represents the period of claims free driving in your own name as a policyholder since the last accident or claim of which you were at fault. The NCD is only protected by the insurer with whom you bought the protection from.

    My take on this is that if you hit get hit with a massive premium increase & decide to switch instead & use your 'no claims bonus' doc & state no accidents this is providing false info. - so that's a no-go.

    So I decided I'm probably better off eating the cost especially with a €300 excess. I pay €488 comprehensive annually on a 2017 Tucson with a named driver (wifey), I'm in my 50's (this is a rare benefit😂 )

    if Liberty took it easy on my premium & only added €100, I would hit that within 5 years. If they loaded me €250 on premium I would be stuck & usable to switch with a full NCB. They simply don't say how you premium recovers I guess because it doesn't & your only way out is to switch.

    Here's what I'm 'protecting'
    Point on no claims bonus scale: 9 or more years discount
    No claims discount applied: -66.00%
    No claims discount applied: --€592.92

    I'm guessing if you claim your premium does not decrease, you are a risk due to behavior or age.

    If I was in a big prang multiple €1000s it would be worthwhile using the bonus protection, or an accident with another car would likely be reported(always offer to pay repairs if little bump & no risk of personal injuries) & so definitely used.



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