Protecting your no claims bonus

Your no claims bonus is the most important factor in securing a discount on your new insurance quote. There are two quite different ways to protect your no claims bonus. Read on to find out how…

The simplest way to protect your no claims bonus? Don’t make any claims. If you drive carefully, taking more notice of others on the road, then you will be less likely to make a claim. Obviously, you cannot be responsible for all the other drivers on the road and many accidents are unavoidable. But, this is the simplest way for you to reduce the likelihood of you making a claim. Consider this – if your first year’s insurance premium was £800, and you don’t claim during that first year, then the next year you will pay 30% less. That’s a £260 reduction.

It’s also worth considering not reporting a claim if it’s for a small, affordable amount – rather than losing your no claims bonus which could get you up to 70% off your next insurance premium.

For a small amount added onto your car insurance policy you can protect your no claims bonus. In this case, even if you make a claim, your no claims will stay intact.

Whilst this is a worthwhile investment, you should be aware that this does not completely protect you from a higher premium next time you renew your car insurance policy. Car insurers take into account not only your number of years no claims bonus when calculating your premium, but also the number of claims you have made. Don’t assume that with no claims bonus protection you can make as many claims as you like and your premium won’t be affected.