A no claims bonus discount could net you a big reduction on your car insurance — we explain how they work and how much you could save. What is a no claims bonus? For every year you have car insurance and don’t make a claim, you’ll get a discount on the following year’s premium — this is known as a no claims bonus or no claims discount. While some car insurance providers offer discounts for up to eight years of claims-free driving, the maximum figure is generally five years. Protecting your car’s no claims bonus If you have an accident and take some or all of the responsibility, it’s likely that you’ll lose some or all of your no claims bonus. A way to safeguard your no claims bonus is to pay an additional amount on top of your car insurance to protect it.
You can check this on the Financial Services Register by visiting the FCA website. Switch Limited is a credit broker, not a lender, for consumer credit products. The Cooperage, 5 Copper Row, London, SE1 2LH. Buying car insurance from Coverfox is simple. This is often regarded as the best way to reduce one’s cost of Own Damage premium at the time of renewal. By now, you do know that NCB is a bonus for every claim-free year. That’s why NCB has a host of perks attached to it. Think of it as a token of appreciation that you receive for carefully maintaining and running your vehicle. Whether you are changing cars or insurers, transferring NCB is easier.
There are certain terms and conditions, though. If you decide to trade your old car for a new one, transferring the NCB could cut down the premium. How does No Claim Bonus Work? No claim bonus can be initiated when the policyholder has not filed a claim in the past one year. 5 lakhs and premium amount of Rs. 15,000 annually has not initiated a claim in the past year, the policyholder will be eligible for a No Claim Bonus during the time of renewal. 15,000 when a claim has not been made in the past one year. This implies that the owner of the vehicle has to pay Rs. No claim bonus add-on is an optional feature that can be attached to your car insurance policy to protect the No Claim Bonus even if you have to make a claim.
With this add-on, you can go on to claim your No Claim Bonus discount of your accumulated percentage slab even if you have made a claim. This add-on covers a pre-defined number of claims that can be made by the car owner without affecting the No Claim Bonus at all. No Claim Bonus add-on cover is suitable for people who drive their car safely and follow the rules and regulations and don’t want to lose out on their accumulated No Claim Bonus due to an unfortunate rare accidental claim. How is No Claim Bonus Calculated? But, remember your NCB immediately drops down to zero, if you file a claim during any policy period. Let’s say for example, Priya and Mala both purchased a Hyundai Car with the same vehicle model. They also buy a same comprehensive policy from the same insurer.