No Claims Discount

**AtW** · 5 June 2013, 13:51

What car did you ask to quote for?

**northernladuk** · 5 June 2013, 13:56

Most insurance companies have upwards of 25 questions that they ask drivers to complete when applying for insurance. These are used to calculate the premium.
The answer to these questions - individually and/or in combination - determine the base premium for, say, comprehensive insurance. So, how does this actually work?
People assume that a 5 years NCB is worth a 60% discount, and that the 60% is applied to the price that the insurance company calculates based on the information that has been provided.
Wrong! With nearly all companies the 60% discount is applied during the calculation, and not at the end. Depending on the company and the way they underwrite, the point at which the 60% discount is applied varies. Often it is applied in the middle of the calculation taking in to account a series of loadings and discounts based on the details submitted. And here is where it gets really confusing:
Every company has a unique way of underwriting, based on years of statistical analysis of claims. The formulae they use are highly complex, as they need to strike a fine balance which enables them to get the best possible premium for a certain type of risk at a rate that is as competitive as they want to be in the market.
If they charge too little they'll lose money. If they charge too much they won't be competitive enough to attract or hold customers. So, it's a precise balancing act. And, as a result, the end figure tends to bear little relation to that which people would expect if the insurer had just taken the full premium and then taken off 60%. So, it seems there is no single easy answer to the question 'how does NCB affect the insurance premium!'

Read more: Car insurance buyers' guide: No claims bonus explained - Confused.com

**Troll** · 5 June 2013, 13:56

Admiral/elephant rate for no fault accidents + attendance on speed awareness courses - they also say they won't make a payout in the event of driving under drink or drugs - tried to find out if that meant payout to an injured 3rd party or just for your own expenses

Not sure I want to do business with them anymore

**northernladuk** · 5 June 2013, 13:59

Originally posted by Troll View Post

Admiral/elephant rate for no fault accidents + attendance on speed awareness courses - they also say they won't make a payout in the event of driving under drink or drugs - tried to find out if that meant payout to an injured 3rd party or just for your own expenses

Not sure I want to do business with them anymore

Nearly all of them take no fault accidents against you nowadays. I nearly fell off my chair when I found out. The fact you were in them is enough of a flag to them that your driving style constitutes a risk. What a ferkin rip off.

**Troll** · 5 June 2013, 13:59

I'm paying £293.50 fully comp on my Merc 220 with Merc Insurance max NCD no convictions, no accidents (Aviva under writers)

**Troll** · 5 June 2013, 14:01

Originally posted by northernladuk View Post

Nearly all of them take no fault accidents against you nowadays. I nearly fell off my chair when I found out. The fact you were in them is enough of a flag to them that your driving style constitutes a risk. What a ferkin rip off.

Mine (well the missus) was hit while parked and she was inside a supermarket... made my feckin blood boil

**Platypus** · 5 June 2013, 14:08

I've just switched to Admiral with a multi-car policy which was much cheaper than insuring the cars separately.

**AtW** · 5 June 2013, 14:09

Originally posted by northernladuk View Post

Nearly all of them take no fault accidents against you nowadays. I nearly fell off my chair when I found out.

Insurance companies don't like "unlucky" drivers

**Old Hack** · 5 June 2013, 14:28

Originally posted by Troll View Post

I'm paying £293.50 fully comp on my Merc 220 with Merc Insurance max NCD no convictions, no accidents (Aviva under writers)

450 odd for GL320CDI.

I think you have to play the game. Renewal quote this year, was 650 from Admiral, so I went elsewhere

No Claims Discount