Making the Most of a No Claims Bonus Option
One way to reduce your car premium dramatically is through a no claims discount. Car insurance policies and prices vary dramatically from insurer to insurer which is why it's wise to make the most of the no claims discount option.
How Big A Discount?
The amount of discount you will receive will vary so shop around. Some firms will reduce your car insurance premium by up to 70% depending on how many years no claims you have whereas others may only go up as high as 50%.
Protected No Claims Bonus
If you have been driving for a number of years it's likely that you would have built up quite a considerable no claims discount which is why we recommend that you find an insurance company that allows you to protect your no claims bonus. This may come at a slight cost but will mean that if you were to claim then you won't lose your no claims bonus. It is worth noting that although your no claims discount wouldn't be affected, your renewal premium may still increase as you would have made a claim.
In addition to this, it's also worth comparing companies to find out how a claim is dealt with if you don't take out protection. Some insurance companies may just deduct a few years off your no claims discount whereas others may completely remove it.
No Claims Bonus & Additional Drivers
If you are driving under someone else's policy it's a good idea to find a company that will also offer no-claims bonuses to additional drivers. This means you are able to build up your no claims bonus without the premiums that are associated with being the main driver. The downside to this however, is that it?s not always transferable.
Related Articles:
- Fully Comprehensive Car Insurance
- What is Third Party Car Insurance?
- What Is a No-Claims Discount?
- Are My Car Contents Covered?
- In-Car Audio Gear Insurance
- Multi-Car Policies
- Car Insurance Basics
This site is for information only and cannot offer insurance advice for your particular situation.
Consult with an FSA authorised insurance advisor if unsure on any topics related to car insurance.
