I have just received my renewal notice. I get Mileage Dscount 5%, Customer Discount 10%, Loyalty Discount5% & Penalty Points Discounts 20%. I notice the discounts are given on a reducing basics. Is that correct? The lowest discount 5% given on my premium less my no-claims bonus.
Car Insurance - Special Discounts
- Thread starter Megan
- Start date
Well if they gave it on a gross premium it would be 50%+5%+10%+5%+20%= 90%.
Throw in a second car discount and a discretionary discount and they'd be paying you for your insurance.
Where is the 50% coming from? NCB?
I assume they can structure their reductions in whatever manner they wish. Saying they give 5% etc will lead customers to assume a 40% discount, when in practise they recieve a lower amount.
G
GA001
Guest
They give say, 50% off the gross Third Party premium say that is 1,500 on the bas rate, then 5% off this etc. In effect if there was no discounts, you could potentially be paying 10 times what you actually receive on the renewal notice. Rather than bore you with the actuarial side of it, you are getting the appropriate discount as shown.
My point is that how can anyone think that a 20% penalty point discount would be off the GROSS premium. Yes, The 50% was assuming the OP had a full bonus and I was pointing out that it wouldn't be possible for the companies to give the discounts they give off the gross premium or a lot of us would be getting our insurance for nothing.
The only discount that is taken off the gross amount is the bonus in most cases. The others are on a reducing basis.
But my point re this was: why don't they start off with the highest % ie: 20% and reduce on down from there.