Traditionally NCD was given according to the number of years claim free. Anything up to 5 years and up to 65%.
When moving company then the new company ignored the percentage discount you had previously been given and simply took your number of years provable claim free and attributed their own scale to that.
It was almost universal that it would be reduced by two years for one accident and reduced to zero for two accidents.
Then along came 'protected' NCD. What that really meant is that your existing company would maintain your current discount percentage in the event of claim. It didn't matter much to them, the punters remained happy and the insurance company just bumped up the gross premium and then applied the current discount.
However, if you changed companies then they would not preserve the percentage, they would apply the reduced number of years claim free to their scale.
These days the whole approach of NCD is a bit raggedy with introductory discounts, special treatments for only one claim, differing and changing rules on bonus transfer, discounts on [now common] second cars etc. etc.
It's all boll**ks, smoke and mirrors really. All that matters is what you pay. And they manipulate that with the gross premium, not the net.
So I wouldn't stress the "protected" bit if I were you.
Last edited by: No FM2R on Wed 29 Jan 20 at 12:42
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