Can someone please explain to me how no claims bonus is worked out?

Forums › Transport (cars, bikes and boats) › Can someone please explain to me how no claims bonus is worked out?

turtleattacks

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#283883 17-Mar-2021 15:30

Hi guys,

We currently pay about $1300 for our vehicle insurance with a no claims bonus of 60%.

At the moment, I'm debating if it'll be worthwhile lodging a claim with an excess of $100 on a dent/chip sustained while the car was parked.

As we do not know who dented our car, it's regarded as an 'At fault incident', and our NCB would be reduced to 40%.

I'm struggling to work out how much would our premium be if the NCB is reduced to 40%.

Would it be $1300 / ~~1.4~~ 0.4 = $3250 (full price).

and then -->

$3250 * 0.6 (40% discount) = $1950

So next year our insurance would be $650 more?

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Mad Scientist
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#2676142 17-Mar-2021 15:32

Hmm. With ami you get 2 free claims a year without affecting the no claims bonus.

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turtleattacks

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#2676143 17-Mar-2021 15:33

Batman: Hmm. With ami you get 2 free claims a year without affecting the no claims bonus.

Not for me, we had just signed up to AMI.

Bung

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#2676171 17-Mar-2021 16:20

The AMI no claim bonus isn't on the total premium. "Government levies, GST and optional add-ons to your policy are excluded from the NCB deduction." They should be able to tell you.

frankv

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#2676340 18-Mar-2021 08:58

Your calculations look correct to me. Except that it's $1300 / 0.4 = $3250 (full price).

You have a $100 excess to pay as well, so if your repair is under ($100 excess + $650 premium increase) = $750, it's cheaper to just pay for it yourself.

But check with your insurance company yourself first.

wlgspotter

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#2676400 18-Mar-2021 10:39

frankv:

Your calculations look correct to me. Except that it's $1300 / 0.4 = $3250 (full price).

You have a $100 excess to pay as well, so if your repair is under ($100 excess + $650 premium increase) = $750, it's cheaper to just pay for it yourself.

But check with your insurance company yourself first.

Just want to add that whilst technically your calculations looks correct, note that in general, insurance premiums have been increasing over the past few years (in fact it have always been increasing for me, whether or not I lodge a claim...) due to factors like general cost increases, Govt levies/ACC increases etc so it is difficult to determine the cost to your insurance for next year. Not to mention the market value of your can will decrease for next year's insurance so that is another factor that will affect the premium that you're going to pay.

Having said all that, should all things remain equal (no increases in base costs, levies etc) then year I guess you could take a leaf out of what @franky mentioned about, i.e. if the cost of repair is under $750 then it may be more worthwhile just to pay it yourself.

turtleattacks

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#2676403 18-Mar-2021 10:42

wlgspotter:

frankv:

Your calculations look correct to me. Except that it's $1300 / 0.4 = $3250 (full price).

You have a $100 excess to pay as well, so if your repair is under ($100 excess + $650 premium increase) = $750, it's cheaper to just pay for it yourself.

But check with your insurance company yourself first.

Just want to add that whilst technically your calculations looks correct, note that in general, insurance premiums have been increasing over the past few years (in fact it have always been increasing for me, whether or not I lodge a claim...) due to factors like general cost increases, Govt levies/ACC increases etc so it is difficult to determine the cost to your insurance for next year. Not to mention the market value of your can will decrease for next year's insurance so that is another factor that will affect the premium that you're going to pay.

Having said all that, should all things remain equal (no increases in base costs, levies etc) then year I guess you could take a leaf out of what @franky mentioned about, i.e. if the cost of repair is under $750 then it may be more worthwhile just to pay it yourself.

Thanks - seems very expensive given it's only a very small dent but some kids playing around my car (My theory).

I don't even know when it happened! (think it was in the Auckland Domain).

It really sucks as the car is only a few weeks old and I've never had a brand new car in my life (A treat to myself).

Panel shop said it'll cost $800-900 to fix it and paint both the panel And the front door for the paint to match.

PDR said that they can do it for about $250 and touch it up with a paint pen but it won't be perfect.

Photos of the dent: https://imgur.com/a/s186IxN/

Bung

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#2676433 18-Mar-2021 11:29

That looks very like the ding that an SUV height rear door produces when an impatient little darling shoves the door open. It's the point at the top of the wheel arch curve on the door that does it.

turtleattacks

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#2676437 18-Mar-2021 11:41

It must be a pretty high car/tank! I have a pretty high car and the mark is pretty high itself.

If I had to bet, it's the kids in ACG playing near my car.

wlgspotter

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#2676465 18-Mar-2021 12:43

turtleattacks:

Thanks - seems very expensive given it's only a very small dent but some kids playing around my car (My theory).

I don't even know when it happened! (think it was in the Auckland Domain).

It really sucks as the car is only a few weeks old and I've never had a brand new car in my life (A treat to myself).

Panel shop said it'll cost $800-900 to fix it and paint both the panel And the front door for the paint to match.

PDR said that they can do it for about $250 and touch it up with a paint pen but it won't be perfect.

Photos of the dent: https://imgur.com/a/s186IxN/

Ouch I feel for you. We've just had a brand new (2nd) car ourselves and situations like these are exactly what we are so worried about when deciding whether or not to go with a new car. In the end, like you, we decided to give ourselves a treat so went with it.

However, luckily for me I have been with AMI for over 20 years so fingers crossed I am entitled to their FreeBMax offerring. Best is if we don't have to use it at all...

Good luck with you repair options thought, whoever you choose to go with. Would be keen to hear how you get on, should you decided to get it fixed.

Take care!

turtleattacks

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#2676476 18-Mar-2021 13:11

wlgspotter:

turtleattacks:

Thanks - seems very expensive given it's only a very small dent but some kids playing around my car (My theory).

I don't even know when it happened! (think it was in the Auckland Domain).

It really sucks as the car is only a few weeks old and I've never had a brand new car in my life (A treat to myself).

Panel shop said it'll cost $800-900 to fix it and paint both the panel And the front door for the paint to match.

PDR said that they can do it for about $250 and touch it up with a paint pen but it won't be perfect.

Photos of the dent: https://imgur.com/a/s186IxN/

Ouch I feel for you. We've just had a brand new (2nd) car ourselves and situations like these are exactly what we are so worried about when deciding whether or not to go with a new car. In the end, like you, we decided to give ourselves a treat so went with it.

However, luckily for me I have been with AMI for over 20 years so fingers crossed I am entitled to their FreeBMax offerring. Best is if we don't have to use it at all...

Good luck with you repair options thought, whoever you choose to go with. Would be keen to hear how you get on, should you decided to get it fixed.

Take care!

You are entitled to FreeBMax once the policy is 12 months old at the highest NCD (60%).

It's tied to the policy and not the person.

So I've been to a few panel beaters and the quote is all about $800+ for a full proper fix (i.e. properly fixing it and spraying the front and rear doors).

PDR will about $250 with a paint pen.

I went into a wonderful panel beater this morning and Wagstaff of Ellerslie said that he can get his boys to touch up the paint for free and give me a bottle of paint to go. He said he knows how it feels to have a new car and someone damages it! There'll still be a small dent on it though but the paint will help it from rusting.

wlgspotter

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#2676494 18-Mar-2021 13:58

turtleattacks:

You are entitled to FreeBMax once the policy is 12 months old at the highest NCD (60%).

It's tied to the policy and not the person.

So I've been to a few panel beaters and the quote is all about $800+ for a full proper fix (i.e. properly fixing it and spraying the front and rear doors).

PDR will about $250 with a paint pen.

I went into a wonderful panel beater this morning and Wagstaff of Ellerslie said that he can get his boys to touch up the paint for free and give me a bottle of paint to go. He said he knows how it feels to have a new car and someone damages it! There'll still be a small dent on it though but the paint will help it from rusting.

Right yeah now I remember AMI informing me about FreeBMax being tied to policy and not the person, which means this would also not apply to our new car until at least 12 months later. :(

Re the paint touch up, I guess that helps a bit, but sucks about the dent. I supposed the dent is too small to be able to use any one of those dent pullers that you can get?

eaglesd

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#2676497 18-Mar-2021 14:11

wlgspotter:

turtleattacks:

You are entitled to FreeBMax once the policy is 12 months old at the highest NCD (60%).

It's tied to the policy and not the person.

Right yeah now I remember AMI informing me about FreeBMax being tied to policy and not the person, which means this would also not apply to our new car until at least 12 months later. :(

Is this a new thing? I'm pretty sure my FreeBMax was applied to my new car when I bought it this was about 9 years ago though. It was on my previous cars policy at the time.

turtleattacks

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#2676498 18-Mar-2021 14:12

wlgspotter:

turtleattacks:

You are entitled to FreeBMax once the policy is 12 months old at the highest NCD (60%).

It's tied to the policy and not the person.

So I've been to a few panel beaters and the quote is all about $800+ for a full proper fix (i.e. properly fixing it and spraying the front and rear doors).

PDR will about $250 with a paint pen.

I went into a wonderful panel beater this morning and Wagstaff of Ellerslie said that he can get his boys to touch up the paint for free and give me a bottle of paint to go. He said he knows how it feels to have a new car and someone damages it! There'll still be a small dent on it though but the paint will help it from rusting.

Right yeah now I remember AMI informing me about FreeBMax being tied to policy and not the person, which means this would also not apply to our new car until at least 12 months later. :(

Re the paint touch up, I guess that helps a bit, but sucks about the dent. I supposed the dent is too small to be able to use any one of those dent pullers that you can get?

The guys can do a paintless dent removal for $250 but the paint won't be resprayed but touched up.

IMO, getting touched up for free is the best of both worlds... I just need to get used to cars being 'used' and getting dents.

What car did you get in the end?

turtleattacks

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#2676499 18-Mar-2021 14:14

Is this a new thing? I'm pretty sure my FreeBMax was applied to my new car when I bought it this was about 9 years ago though. It was on my previous cars policy at the time.

Not sure if it's new as I've just returned from being 10 years overseas, however this was on their website.

I have a policy that has earned freeBmax. If I take out another Private Vehicle or Vintage & Classic Car policy, will that policy have freeBmax as well?

freeBmax applies to the policy, not the person. Once your new AMI Private Vehicle or Vintage & Classic Car policy has received AMI’s maximum No Claim Bonus discount continuously for the last 12 months, and as long as it hasn’t had a Bonus Reducing Claim in those 12 months, it will automatically qualify for freeBmax.

wlgspotter

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#2676505 18-Mar-2021 14:34

turtleattacks:

Is this a new thing? I'm pretty sure my FreeBMax was applied to my new car when I bought it this was about 9 years ago though. It was on my previous cars policy at the time.

Not sure if it's new as I've just returned from being 10 years overseas, however this was on their website.

I have a policy that has earned freeBmax. If I take out another Private Vehicle or Vintage & Classic Car policy, will that policy have freeBmax as well?

freeBmax applies to the policy, not the person. Once your new AMI Private Vehicle or Vintage & Classic Car policy has received AMI’s maximum No Claim Bonus discount continuously for the last 12 months, and as long as it hasn’t had a Bonus Reducing Claim in those 12 months, it will automatically qualify for freeBmax.

I just checked our 2x car policies. On our old Honda Accord Euro Tourer, under "Discounts Included" section with our AMI app, it states "No Claims Bonus of 60% freeBmax".

However, for the new car, it only states "No Claims Bonus of 60%". I take it that freeBmax doesn't apply to the new car.

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