Protected no claims. Why?

D

Dav the wheel nut

Veteran
 Somerset
My other half had a minor accident this year when she rolled into the rear of another car at a junction in her own car.
Privelage Insurance were excellent dealing with it in respect of repairs and courtesy car etc.
However,here is my question. She pays £27 a year to have protected no claims and yet when the renewal came through it had gone up by 40% 'because of the accident'. So what is the point of paying to protect it if the premium is going up anyway?
If she wants a quote from another company, yes she can say she has 9 years no claims but still has to declare the accident which bumps up the premium.
So what is the advantage of paying the premium?
 
In theory, the discount is protected (i.e. 65% or whatever), but the baseline premium goes up because of the accident.

So if the premium was £1000, with 65% you would have paid £350

Now the premium is £1400, with protected discount you get 65% dfiscount of that, being £490. Without protected discount, it would have been 40% discount of £1400, so £840.
 
and they always try it on too :headbang: :headbang: :headbang:

mrs gannets renewal (Bell) more than doubled this year because of my minor prang in her car... confused.com more than halved it again with Admiral...... which Bell then price matched because well of course they are all the same company :roll:

beggars belief :o

pvr's explanation actually made sense though is not always the case - informed my company of the minor prang and it made no difference, though I did lose the no claims protection...

It's all a mine field :evil:
 
pvr said:
In theory, the discount is protected (i.e. 65% or whatever), but the baseline premium goes up because of the accident.

So if the premium was £1000, with 65% you would have paid £350

Now the premium is £1400, with protected discount you get 65% dfiscount of that, being £490. Without protected discount, it would have been 40% discount of £1400, so £840.
Click to expand...

Right I get it now :thumbsup:
 
pvr said:
In theory, the discount is protected (i.e. 65% or whatever), but the baseline premium goes up because of the accident.

So if the premium was £1000, with 65% you would have paid £350

Now the premium is £1400, with protected discount you get 65% dfiscount of that, being £490. Without protected discount, it would have been 40% discount of £1400, so £840.
Click to expand...


...is true, depending on the nature and cost of the claim, the insurer will consider you an increased risk simply because there WAS a claim, so bump your base premium up. The practice probably also varies from one insurer to another but they tend to take the view generally (and often unreasonably) that there are very few accidents that are not caused by both parties....even if, say, you just parked your car and someone drove into it - they would argue you should have parked it somewhere less 'dangerous'.

As often said, they have us by the short 'n curlies. Or the brazilian in Adamski's case.....
 
Well there is a positive end to this story. Because of the price hike I decided to shop around for another quote and got the exact same cover for £100 less!
I then decided to shop around for cover on my L200 and saved £150.
Job done.
The moral is of course to take the time to get new quotes each year and not accept your renewal each time thinking it was ok, which is something I have been guilty of :wink:
 
Vote with your feet, the best way and the only language they understand.
 
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