Car Insurance

[RobMCFC]

I always led to believe because I have 80% or more, it’s best to keep it protected?

I think 65 - 70% is generally the maximum, but I agree with you, it’s definitely worth protecting.

 

[remember arthur mann]

Martin Lewis issues 'be careful' insurance warning as drivers told 'check now'

Car insurance is believed to have soared by as much as 40 per cent in just one year

www.manchestereveningnews.co.uk

 

[Uncle Wally One Ball]

I think 65 - 70% is generally the maximum, but I agree with you, it’s definitely worth protecting.

Genuinely interested to know the reason why this is. What is the thinking behind it?

 

[RobMCFC]

Genuinely interested to know the reason why this is. What is the thinking behind it?

As an example, If I have full NCD, let's say 70%, and say I'm paying £300 for my car insurance.

If I did not have NCD, then the price for the same insurance would be £1000 (i.e. without the 70% No Claims Discount).
In addition to age, this explains why new drivers are expected to pay eye-watering amounts for their first year's insurance

Now, admittedly, if you were to make one claim and you don't have NCD protection, you wouldn't lose all of your NCD, but it could drop to 50%, so then you'd be up to £500 for the year. If you're unlucky and had two claims, you could be up to £700 or £800 etc.

Insurance companies will always then put your base price up the next year if you've had a claim - this is regardless of whether you have protected NCD or not.

NCD doesn't protect against your price going up. but it gives you protection against a double-whammy.

 

[Centurions]

Just had my renewal drop today from the AA and it's gone up from £170 to £277 with no changes. That's a 63% rise. I'm in my 60s and have never made one single claim in my life. Comparison sites here I come because regardless of the quotes I'm dumping them to make a point.

 

[Alan Harper's Tash]

Just had my renewal drop today from the AA and it's gone up from £170 to £277 with no changes. That's a 63% rise. I'm in my 60s and have never made one single claim in my life. Comparison sites here I come because regardless of the quotes I'm dumping them to make a point.

They’ve gone up loads this year due to the “cost of parts.“

 

[Centurions]

They’ve gone up loads this year due to the “cost of parts.“

OK, turns out I'm not making a point after all. Compare the market has a couple of no-mark companies slightly undercutting them and the first major name (Churchill Essentials) at £300, even Hastings Direct who have been usually on the money (so to speak) have theirs at £320.

So I'm paying for the people who do put claims in I guess.

 

[BridgyDids]

OK, turns out I'm not making a point after all. Compare the market has a couple of no-mark companies slightly undercutting them and the first major name (Churchill Essentials) at £300, even Hastings Direct who have been usually on the money (so to speak) have theirs at £320.

So I'm paying for the people who do put claims in I guess.

To be fair, you always are. That’s the principle of Insurance.

The many, pay for the few.

 

[Kompany Car]

To be fair, you always are. That’s the principle of Insurance.

The many, pay for the few.

But unfortunately you also pay for the twats who dont bother having insurance or have insurance that doesn't actually cover them e.g motor traders insurance, the misuse of which is rife around Bradford and Birmingham. Yet the fine is only £300, why aren't they lobbying the government to make this £3000 ?

Then there's the fraudulent claims bunch.

 

[Centurions]

To be fair, you always are. That’s the principle of Insurance.

The many, pay for the few.

Must be more than a few for a 63% hike within the last year :(