Having a no claims bonus will make a big different when it comes to getting a very cheap car insurance quote.
How much money can you save with a no claims bonus?
If you drive without making a claim on your car insurance, you’ll get a discount when it’s time to renew. For each year you drive without making a claim, the discount you get should increase. The maximum possible no claims discount usually comes with five years of claims-free driving, although some companies give bigger discounts for people with up to eight years claim-free.
One year’s no claims bonus is usually worth a 30% discount, while a five year no claims bonus could save you as much as 70%.
Careful drivers can save on car insurance with a no claims bonus. Image by Herkie via Flickr
Protecting your no claims bonus
If you have an accident and you take some or all of the blame for it, you will lose some or all of your no claims bonus. If someone else takes the responsibility for the accident, you should keep your discount.
There are two ways to safeguard your no claims bonus:
- Don’t make any claims. Of course, this is easier said than done; you can’t be responsible for all the other drivers on the road and many accidents are unavoidable. However, it’s also worth considering not reporting a claim if it’s for a small, affordable amount because losing the no claims bonus could end up costing you more.
- Protect your no claims bonus. For a small amount added onto your car insurance policy you can protect your no claims bonus, which means that even if you make a claim, your no claims will stay intact. While 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 if you have no claims bonus protection you can make as many claims as you like without your premium being be affected.
When you compare car insurance with uSwitch, we take your no claims bonus into consideration – get a car insurance quote now to see how much you could save.
*60% of car insurance customers could save up to £200 (Consumer Intelligence data, December 2011)
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