Quote:
Originally Posted by keith_d
Protected no claims isn't worth squat. These days 'no claims' is just a piece of marketing bull***t, since you have to disclose any claims and even non-fault claims appear to affect your premiums.
Years ago, no claims discount was used in calculating the premium. But these days it's all computerised scoring systems and 'cherry picking' low risk demographics. Which, given the random nature of traffic accidents, means they're using some pretty p*ss poor analysis.
So, IMO, 'protected no-claims' is just an excuse to screw you for another premium up front, with no beneficial effect on your future premiums. You may still have 60% discount on paper, but your basic premium has just doubled.
Anyone in the motor insurance industry care to comment?
Keith.
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I'm no longer significantly involved in private motor insurance but I have some sympathy with what you're saying.
No Claims Bonus is, and always was, a device invented by insurers to discourage you from claiming. It's no more or less than that.
Now premium generation is computerised it is very easy for the gross premium to be significantly manipulated upwards, making the amount of discount meaningless. You couldn't have done that in the old days of the printed rating matrix.
However, there's plenty of alternatives out there and virtually no barriers to switching, so if one insurance company is getting their rating wrong another insurer will pick up that business.