No Claims Bonus?
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by: kwikfit
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Each year that you do not make a claim on your car insurance you build up a no claims bonus which will give you money off your premium. The savings can be reduction can be quite significant, with insurers reducing the price of a standard policy by up to seventy-five per cent. This reduction can be so big that you may find it more economical to pay to repair minor damage yourself, even if you could make a claim, so you can keep your no claims bonus.
If your car is damaged or stolen, or you are involved in an accident then you may have to claim on your insurance. Unfortunately, even if you are not responsible you will end up having to pay more for your car insurance if you make a claim. For your insurance company it is about making a claim not who is to blame, and if the costs of your claim cannot be recovered then you will lose your no claims bonus.
For this reason, there are car insurance policies available which protect your no claims bonus even if you do claim, and even if the accident or reason for the claim is your fault. This sort of policy will typically let you make a limited number of claims within a specified period without the claims affecting your no claims bonus.
Most insurers only offer protected no claims bonus policies to low risk drivers. If you are considered to be a high risk customer, for example if you are under twenty-five or have recently made claims, then you could be refused this kind of policy.
These policies will protect your discount, but you will pay slightly more for privilege. You should weigh up the extra cost of the policy against how much you could have to pay if you did need to make a claim. If you cannot afford a big jump in your premium then it is worth paying for the additional cover.
If you don't have a no claims discount, there are companies that offer policies which allow you to earn reductions in your premium every ten months instead of every year. If you are insured on someone else's policy, for example your parent's, they can get a policy where you begin to earn no claims bonus even though you are insured on their policy. This will really help you to get a better deal when you get your own car and need to get your own insurance.
By the same principle, if you drive a company car and you are insured on your employer's policy, ask whether your insurance company will take this into consideration to give you a no claims bonus. If you can show that you have made no claims, some insurers will give you a discount based on your track record driving a company car.
If you want to find cheaper car insurance but you haven't got any no claims discount, there are still lots of other things that you can do to reduce your premium. The kind of car you drive, with faster and sportier models being the most expensive, can make a big difference.
Female drivers are statistically less likely to make a claim, and to have smaller claims, so some companies give women cheaper rates. Take time to shop around, and you will find a wide range of policies and prices, and there are definitely good deals available.
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