No Claims Bonus Guide

No Claims DiscountIf you have been with an insurance agency for around a year or more without making a claim, your insurance company will give you a no claims bonus. A no claims bonus is essentially a reward for being safe while on the road. You receive a discount.

The size of your discount will usually rise with each year that you have not registered an insurance claim. Your bonus may start at around thirty percent the first year, forty percent the second year, and fifty percent the third year. After the fourth year, your no claims insurance bonus will probably stay at sixty percent.

This is the normal limit for a no claims insurance bonus. In many cases, your claim will be reduced even if the accident is not your fault. Many people say that there is a reason why it is called a no claims insurance bonus and not a no fault insurance bonus.

After you make a claim your no claims bonus will be reduced by around two levels or more.

It is possible for you to take your no claims discount with you if you wish to change your car insurance provider. In order to do this, you will need to give the new insurance company proof of your record. If you cannot find this proof, you can simply ask for your record from your old insurance company. You cannot use the same no claims discount on two different cars. They cannot share the same account.

What Happens When Your No Claims Insurance Bonus Becomes Affected

As you already know, the no claims insurance bonus could be significantly affected when you make a claim. However, there are some rare cases in which the bonus will not be affected. For example, if you can truly prove that the accident was in no way your fault, you may be able to get away with the claim. In other cases, your insurance bonus will be set back even if it was not your fault. This includes a stolen vehicle or a vehicle that was damaged as a result of vandalism.

In the case of something small like a broken window, you may be able to ensure that your no claims discount is not affected. Larger claims may cause you to part of your discount or even all of it. Some companies may choose to keep your discount if your claim is a result of vandalism. Others may choose to keep your discount if it is a result of an uninsured driver. However, you will need to provide proof that the driver is uninsured. In most cases if you have filed a claim your no claims insurance bonus will only be lessened and not eliminated.

Protecting Your No Claims Discount

Many people try to look for ways to protect their no claims bonus. However, it is important for you to understand that protecting your no claims bonus does not keep your original premium from rising in price. In addition, if you file a typically pricy claim, there is no doubt that your no claims bonus will be affected. Many people still believe that protecting their no claims bonus is worth protecting. This is because it can save a person a significant amount of money.

The more simple way to protect your no claims bonus involves keeping a good driving record. If you can pay attention to the road then you may have a chance at protecting your bonus without paying extra money. However, this is not exactly the most fool proof way. It is possible for you to add an affordable amount of money to your insurance policy. This can protect your claims bonus to some degree. Another simple way is to refrain from reporting small events that you know you can afford. Protecting your no claims insurance bonus keeps your bonus available even after you make a small claim. It does not protect your premium and it does not mean that you can make as many claims as you want.