Protected no claims discount?

Someone reversed into my car while it was parked up and with the handbrake on about two weeks ago. I rang my insurance company and explained what had happened, and said I wouldn’t bother making a claim through the insurance as the damage to my car was just a cracked rear light cluster which would be way below my £250 excess, but I would probably want to claim against the other driver for this damage as it is an uninsured loss. I haven’t made a claim with my insurance company, merely kept them informed. I’ve had a completely clean licence with no accidents since 1995, never made a claim. I have full no claims discount, which I have paid extra to have protected. My car insurance is up for renewal in just over a week. However, my insurance company have now sent me an amended insurance quote, which I received today, which is an increase of over 20% on top of what they were willing to renew at just days before the other driver drove into me. Their letter says that this increase is because of my "claim" – although I haven’t made a claim – I haven’t claimed anything. The insurance company hasn’t exactly endeared itself to me by giving my details to a set of ambulance-chasers who have contacted me maybe 20-30 times in the fortnight since the accident.

Either I’ve paid extra to protect my no claims or I haven’t? The insurance company are being very cagey about why the increase due to a claim that hasn’t been made, and won’t give me a straight answer.

Anyone know more about car insurance than I do that can help explain what is happening?

I’d have expected better from a big name like M&S.

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5 Responses to “Protected no claims discount?”

  1. Robert J says:

    The trick they use is that your No Claims (number of years or discount level) is not affected, but the base premium is not restricted in any way – they put that up and you pay more.

    If you stay with the same company, they usually put the premium up anyway, the only way of keeping a reasonable price is to look on the big comparison sites each time it’s up for renewal.

  2. Pepper of the Moon says:

    It’s an ‘uninsured loss’ – this means YOU pay for it, indirectly. NCB protection only works if you stay with the same company – reason? When you get an alternative quote, they hit you with the question: ‘any accidents, claims or convictions within the last xx years?’ So, you have to state the truth and other companies are not interested in your NCB protection, only their own exposure to risk – therefore, they disregard it. I had a similar experience several years ago where my renewal premium more than doubled after a claim – and I had NCB protection. In my case, I renewed much cheaper by changing insurance company, even though I had ‘made a claim’.

  3. Bazza says:

    What you do is phone your insurer, ask them to be sensible and correct their error or you will have to take your custom elsewhere. If they won’t relent move to another firm. Try the Co-op.

  4. Baz says:

    enerally most insurers use drivers claims history as part of the underwriting process – the process that they go through to calculate the premium. The fact that a claim has been made figures in this calculation. With some of the more sophisticated companies the cost of the claim, the fault and non-fault aspect and the type of claim are all taken into account when calculating the premium and that’s why they are included in the questions drivers have to complete when getting a quote! That can add a ‘loading’ to the premium, which may or may not be counteracted by all the other discounts and loadings that apply at the time the renewal price is calculated.

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  5. welcome news says:

    Insurance companies can increase premiums whether or not an accident is ‘fault’ or non-fault – justifying it by using statistics that show that drivers who have had one incident (fault or non fault) are more likely to have another.

    If it is any consolation, if you had not had protected bonus you would be paying substantially more as your bonus would have been ‘stepped back’ until the insurance company were happy that they would not be paying anything out for the incident (remember they don’t know everything – jsut what you have told them)

    I would also say that M&S are not an insurance company – they have come to an agreement with Budget Insurance Services Ltd (BISL) who are not an insurance company either but who have arranged a policy with an insurance company and who basically have the right to trade as M&S car insurance.

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