Do people bother paying extra to protect their no claims discount?

Doing so on my current quote adds £50…

Personally I wouldn’t bother, but Mrs FD prefers us to. To me its kind of like saying I am going to have 2 crashes in the next year.

Do people bother paying extra to protect their no claims discount?

Doing so on my current quote adds £50… How much would your premium be if you had a claim – with and without the protection? Certainly your price would jump by more than £50 and for more than one year, but probably only you can assess the economics, your likelihood of having a claim and your attitude towards claiming smaller stuff etc.

If you have an accident your subsequent premium will still go up though.

For peace of mind and £30 I’ve protected it. Ran quote through with a fault claim and reduced bonus and would be paying over £200 more than if I didn’t protect it.

I protected mine, thank gods, because my car was stolen. NFU paid out no problem at all, and I still have full NCD. Remember though that although you still have all your no claims, the premium from which it is deducted starts off higher because you have made a claim.

For me it’s worth it, and I protected it again last renewal.

If you have an accident your subsequent premium will still go up though.

This is true, because you’re percieved as a higher risk, shich seems to defeat the object somehow, but I guess you get a bigger discount on a highger premium. It’s all smoke a mirrors really.

Hora- If you have an accident your subsequent premium will still go up though.

Yes, and using purely hypothetical numbers:

WITH NCD PROTECTION – Claim in Yr 1
Y1: 300; Y2: 400; Y3: 375; Y4: 350; Y5: 325; Y6: 300

WITHOUT NCD PROTECTION – Claim in Yr 1
Y1: 300; Y2: 1000; Y3: 700; Y4: 600; Y5: 500; Y6: 400

Like all insurance if you simply work on numbers and averages it is unlikely to be in your favour. It all depends if you can afford the much higher premiums for several years following a claim.

As above ncb protection is just a nice source of extra revenue for insurers. If you fit the pattern that it’s not profitable then they don’t offer it to you.

If you have an accident your subsequent premium will still go up though.

Yes, but by much less than if you hadn’t protected. Having had 3 claims whilst protected, I’m still ahead of where I’d be if I hadn’t bothered (and it still rankles that I lost NCD when my car was stolen and I lost my full NCD because I wasn’t allowed to protect due to being under 25).

Ive heard of cases though, where even if you have NCD with say, 9 years claim free (decalared on your documents) when you get your renewal through you’re NCD shows as 3 years after a claim, even if you have protection, because they say that’s the highest level of discount they offer (even if other comapnies offer more).

As above ncb protection is just a nice source of extra revenue for insurers. If you fit the pattern that it’s not profitable then they don’t offer it to you.

I have never claimed in 18 years but they offered it to me…

anyhow I didn’t bother in the end…

and only your current insurer needs to ‘protect’, and they can still raise your premium…

I only do if it adds little to the cost of the policy, say <10%.