Re: Protect or not (no claims discount)
Originally Posted by caricature
What are peoples thoughts on protecting or not the no claims discount.
Don't do it !
Protected No Claims is just an insurance scam and just a further way to get more money out of you.
I shall explain why.
The no claims protection ONLY applies to YOUR CURRENT insurance company who will [pretend to] turn a blind eye if you have a claim.
Be very clear on this.
If you pay for Protected No Claims Discount and then next year decide to go to another Insurance Company then that No Claims Discount will fizzle to thin air. It won't apply. It has no meaning or merit with the new insurance company. None whatsoever. They don't care about it.
When you get a quote from that new company you will be asked the question:
"Have you had any accidents or claims in the past 5 years"
If you have YOU MUST legally answer Yes. Whether you had No Claims Discount before is immaterial. You have to answer Yes.
The moment you do answer Yes that quote is "loaded" with additional premium. In short, you can NEVER get away from additional premiums if you have had an accident or claim unless it wasn't your fault and the full money was recovered from the other party.
OK so what happens if you don't go to a new insurance company and stay with your existing one?
Well you have that Protected No Claims Discount with them right? So when you have an accident and claim all is well right?
What happens is they put your premium up at the end of the year . . significantly. They still pretend you have "No Claims" and assign a discount but even with it, the policy is loaded anyway so you pay more than last year. When you ask why they will simply say that all premiums have gone up along with the rest of the industry.
Protected No Claims Discount is a scam plain and simple.
What it does is basically tie you to one insurance company because you know if you go elsewhere, your previous accident/claim will result in an expensive quote. It's nothing but a hook which gives you the choice of 2 evils, pay a huge premium with a new company or pay an increased premium with your existing company. It's just designed to keep you with your current company, nothing more, a simple con, a hook and one which they have the gall to charge you for !
Don't do it.