Three years after the introduction, ABC insurer no longer offers the no-claim protector on motor insurance. Lender had previously abolished the protector. This insurance is expected to disappear with more companies. The premium income does not outweigh the claim burden. Relatively speaking, car owners with a no-claim protector appear to claim more damage.
Premium insurance increase
At the end of 2008, Dashwood family predicted the end of the premium war among car insurers. Since then, several companies have increased the prices of their car insurance. The fact that after the premium increase insurers are now going to tinker with the no-claim protector is both the result of disappointing profit results.
Falling car insurance profit
Profitability on motor insurance has declined in recent years. Part of the income is invested. Initially, the declining profit could therefore be compensated with investment income. However, this buffer has disappeared due to the credit crisis.
Abolish no-claim protector
If the insurers are financially prosperous, they have more scope to attract and retain customers. For example with attractive insurance as the no-claim protector. After all, the insured retains his accrued premium discount in the event of a claim for damages. However, now that the profit is declining, the claims burden is starting to weigh more. By abolishing the no-claim protector, car owners will again pay more premiums after a damage claim.
What is a no-claim protector?
Damage-free years is the term for the number of years that you are insured without debt damage. Every year that you do not claim damage, you build up one damage-free year. But as soon as you make a claim, you go backwards with 3 or more years on the bonus / malus ladder. And you therefore lose premium discount. With a no-claim protector you fall back in claim-free years with a claim for damage, but you keep your discount percentage. In this way you will never suddenly have to pay much more premium.
Changing car insurance
If you want to change car insurance, you must state the actual number of claim-free years. Through our car insurance comparison, you can immediately see which company has the cheapest car insurance for your situation.