Household Bills. About the site. MSE's Editorial Code. How we're financed. Martin's blog.
As you build up more claims-free years, you progress along a no-claims bonus scale, which might look something like the example below. Each insurer's no-claims bonus scheme is different - from the size of discounts to the number of claims-free years it takes to achieve them. Suppose you have two insurers.
In this case, insurer A is clearly the cheapest. Some insurers will make a point of awarding generous no-claims bonuses in their marketing, but it's important to compare the final quote - with any discounts included - to determine which is the best deal.
No claims discount: is it worth protecting yours? • Fairer Finance
Read our guide on how to find an insurer with a lower premium. This basically bumps down the discount back to what it was in previous years. Insurers have different step-back scales.
There are certain kinds of claim that won't erode your no-claims bonus. Generally, insurers will leave your no-claims bonus alone if your claimx was not a 'fault' claim.It depends on your personal situation whether it’s worth protecting your no claims discount. If you have five years’ no claims discount, it will significantly cut the cost of your car insurance. You could lose all that for just one accident. You would also normally lose your discount for being in an accident with an uninsured driver, if you had to make a claim on your own insurance. Should I Protect my No Claims Bonus? A No Claims Bonus is a very valuable thing for the driver of a vehicle to have. When an individual passes their driving test for the first time insuring their first vehicle is likely to prove quite costly. The reason for this is that the driver is “unproven”. May 15, · It was generally agreed that in the war of consumer vs insurer the insurer won. They made massive profits from people protecting their no claims discount. Everyone paid to protect their no claims discount and they were happy to pay it and it was the RIGHT THING TO DO. Sort of win win for everyone.
This means they were able to recover their repair costs in full from protet party at fault. Similarly, many insurers will disregard non-fault claims where the other driver was uninsured. No-claims bonus protection is an added extra that you can buy with your insurance. It will prevent a limited number of claims two or three claims over a three-year period is common from having an impact on your no-claims bonus.
You shouldn't protect your no claims bonus
No-claims bonus protection will certainly save you money if you make a claim. So this should give you a starting point in working out whether to buy no-claims bonus protection. As a general rule of thumb, the bigger your no-claims bonus, the more you stand to lose through making a claim, and therefore the greater the value of the protection.
A fairly common misconception about bonus protection is that it stops your premiums from rising because of a claim. After this, it will apply whatever discount you have.
Consumer Rights & Campaigns
Then you make a claim - protected under the added extra you've paid for. The table clxims shows the policies of dozens of insurers we rate.May 15, · It was generally agreed that in the war of consumer vs insurer the insurer won. They made massive profits from people protecting their no claims discount. Everyone paid to protect their no claims discount and they were happy to pay it and it was the RIGHT THING TO DO. Sort of win win for everyone. Mar 17, · What happens if I don't protect my no claims bonus? When you take out a car insurance policy, if you don’t protect your no claims bonus and you have an accident that was your fault, you will usually lose most, if not all, of your no claims discount you have accrued up to that point in time. If the accident wasn’t your fault and a claim can be made against a third party, you should retain your NCD. Feb 16, · Last Modified 16th of February Protecting your no claims discount is a tricky subject and there are certainly a few pros and cons. Many people point out that if you have a protected no claims bonus and you have an accident, your premiums the following year will almost certainly be significantly higher. The counter argument to this point is that if this does happen, you will be paying less than you would if you had no .
Note: Policies mt change - correct as of February This allows you to carry over the benefits of your accumulated claims record without having to start from scratch each time you switch insurer. Our reviews of individual insurers record the maximum number of years of no-claims bonuses you can accumulate.
Cars & travel
Insurers will often check online databases first to corroborate your no-claims bonus entitlement stated in your application. Financial Services Limited.
If you have at least 4 years shouod claims bonus, you may be able to sholud an extra amount to protect your entitlement in the event of claim following a fault or non recoverable claim. This means that within a certain period 2 years with most insurers you can make a specified number of claims 2 with most insurers without your no claims bonus being affected.
Is it worth protecting your no claims discount? - Money Saving Advice
By continuing to use the site, you agree to their use. Other insurers will guarantee you protection regardless of the number of claims you have to make. Note that your results will also vary depending mg many other details you enter, such as post code and driving history.Car insurance no-claims bonuses explained - Which?
Usually, this won't be the same insurer. In reality, the cost of the protection is built into the shoupd it quotes you. Having worked in the insurance industry in various roles, I've written about protected bonuses before. I was reminded of it last week when I read a press release that came to some seemingly odd conclusions, which made me think it was worth revisiting this subject.
Here's what I found in my tests.
Protecting no claims Bonus — MoneySavingExpert Forum
After that, his record should be clean again. On the other hand, if he didn't have to claim until the following year, he'd have been better off by not protecting in the longer run. The more years he goes claim free, the more he'll save. Having more than one claim in close succession is the nightmare scenario if you haven't protected, since it will probably reduce your bonus to one year to zero. Each additional claim will probably still increase your premium if you have protected your bonus, but not to the same extent.
So, what if our hypothetical driver made one claim two years in a row?