Auto Insurance Premium

[Komerican]

I had a minor accident and the insurance company put me at fault.

How is this going to affect my premium for next year?

If I make a claim would that cause increase in my premium and if it does, then, by how much?

Doe anyon know?

[ThaivisaInsurance]

If there is a claim on your policy then you will loose your NCB and so next years premium will be higher. As for the amount, that depends on the NCB you have built up.

[Komerican]

If there is a claim on your policy then you will loose your NCB and so next years premium will be higher. As for the amount, that depends on the NCB you have built up.

Thanks for the reply,TVI.

But what is NCB stands for?

[ThaivisaInsurance]

If there is a claim on your policy then you will loose your NCB and so next years premium will be higher. As for the amount, that depends on the NCB you have built up.

Thanks for the reply,TVI.

But what is NCB stands for?

No Claims Bonus

[Komerican]

If there is a claim on your policy then you will loose your NCB and so next years premium will be higher. As for the amount, that depends on the NCB you have built up.

Thanks for the reply,TVI.

But what is NCB stands for?

No Claims Bonus

Thank you.

[basjke]

If there is a claim on your policy then you will loose your NCB and so next years premium will be higher. As for the amount, that depends on the NCB you have built up.

I never knew you would lose your complete NBC when having an accident.I have always been told you would lose the NBC you gained in the last 2 years.You even have the chance to pay back the damage to the insurance company at the time of renewing your contract,and don't lose any NBC, if that would be a cheaper solution for you.

[torrenova]

You also have the option, I'll wager at less than the insurance billed cost, to settle matters yourself.

You will lose your NCB and your premium may also rise from the gross premium it was this year.

Whether to pay yourself is quite a complicated mathematical and risk assessment question. I'll try to explain.

Say your gross premium is 20,000. You have 40% NCB which say took 3 years at 20+10+10 and you would have accrued another 10% this year taking you to 50% NCB

If gross premiums stayed the same and you had no accidents in the next 3 years, you would lose:

Year 1 - 20,000 * 50% = 10,000

Year 1 - 20,000 * 30% = 8,000

Year 2 - 20,000 * 20% = 4,000

Year 3 - 20,000 * 10% = 2,000

Total loss until back at 50% NCB 24,000 over 4 years

If premiums rose say 5k a year your loss would be

Year 1 - 25,000 * 50% = 12,500

Year 2 - 30,000 * 30% = 9,000

Year 3 - 35,000 * 20% = 7,000

Year 4 - 40,000 * 10% = 4,000

Total loss in this case would equal 32,500

I think the maths is right, I cannot find the spreadsheet I set up ages ago.

Of course, you have to discount the potential loss by what you think is the likelihood of you making a claim. However, whilst premiums do seem to increase through inflation, I am quite sure they are also loaded if you have a claim.

The often touted idea that you claim for everything is clearly rubbish but if you have already made a claim in one year, you might as well have another claim to tart up the car as that seems to have little cumulative effect if any at all.