We also talk about other aspects of vehicle insurance on the Gazeta.pl website.
Discount is the keyword when it comes to car insurance. It is able to reduce the premium value by up to 70 percent. And this is a major relief – it causes the price of the third party liability insurance policy to drop, for example, from PLN 2,400 to PLN 720. Unfortunately, not everyone can count on discounts. They are accrued depending on the type of policy, as well as the age of the driver, the age of the vehicle, its market value, engine capacity and … most importantly, claim-free driving. Damage-free driving is one of the most important factors. One collision may result in the driver losing, for example, all discounts for at least a year.
Sometimes, after a collision, insurance companies collect, for example, 30 percent. discounts, but extend the grace period to 3 years.
How much does discount protection cost? Sometimes it’s free.
Does the damage always result in the loss of discounts? Fortunately, no. There are offers with the option of keeping the discounts. The choice of protection often means an additional fee ranging from 30 to 100 PLN. Interestingly, these options are not always paid. Many companies add them to the policy for their regular customers free of charge. Usually, the protection of discounts is mainly referred to in the case of a third party liability policy. However, this is only a partial view. Increasingly, this option also appears in the context of autocasco.
How does discount protection work and who can buy it?
Discount protection works quite simple. If the driver has a collision due to his fault, which will result in payment from third party liability insurance and, for example, motor insurance, the insurer will not apply the so-called increases. Ie the driver (or the co-owner of the vehicle) will not lose the policy discount and will still be able to enjoy a lower premium. It is worth mentioning at this point who is offered discount protection. Such an offer is mainly received by those drivers who have not had any collisions for the last 3 years. And although the period of 3 years can be considered universal, it is worth remembering that the option is an additional option – therefore different companies may apply different criteria.
There are also downsides to protecting discounts. Two major drawbacks
The discount protection option seems perfect. However, the solution also has some disadvantages. First, the protection of discounts usually only applies to one collision per year. When two drivers happen, the second one will be taken into account when calculating the premium for the next year. Secondly, protection of discounts generally limits the driver’s scope for the purchase of third party liability or motor insurance for the next year. The option applies to one insurance company. The driver must extend the policy with the same company. In another, he will not be covered by the discount protection and he will have to take into account the loss of some or all of the discounts.
The insurer, regardless of the protection of the discounts, must report the claim to the Insurance Guarantee Fund. Therefore, the information taken from the database will become the basis for calculating the premium in another insurance company.
Does discount protection work and the policy is more expensive? It is possible!
Third, discount protection ensures that discounts are preserved. However, it does not guarantee … the same policy price. This is because the amount of the premium is also influenced by factors such as inflation or the amount of claims settled in a given year in Poland. It is possible, therefore, that despite the discount protection, the driver will pay more for OC or AC. In this case, however, the increase will not exceed several dozen zlotys and will be the result of the natural market mechanism.