No Claims Discounts and No Claims Bonus

No Claims Bonus Affects Your Insurance Premiums

No claims discounts are given to buyers of motor insurance according to a sliding scale. They were designed to reward safe drivers and although it this is only a theory, we here at MotoWorld believe that your age is a weighting factor the actual percentage of discount your current insurer passes on to you. In other words, if your a 20 year old male driver with 2 years no-claims you wont recieve the same percentage discount as you would if you were a 28 year old male with the same no-claims discount. Although the discounts that you could qualify for vary greatly between insurance companies, the table below should serve to give you a basic idea of what you should look to expect in an ideal world and all things being equal:

Zero No Claims Bonus - The best you can expect here is a form of introductory discount from your car insurer
1 year no claims - 15% - 20% discount applied against your premium price
2 years no claims - 20% - 30 % discount applied against your premium price
3 years no claims bonus - 30% - 45% discount applied against your premium price
4 years no claims bonus - 50% discount applied against your premium price
5 years or more no claims bonus - Maximum of 75% discount applied against your premium price

Once you have 3 or more years No Claims Bonus against your name you will start to see that it really does pay for you to make an effort and shop around online. This is why we recommend that you use an aggregator web site like compare the market, confused.com, quotezone and gocompare to get the very best quoted price from the insurers. Then go to a direct insurer and get them to give you a quote too. The whole process will take less than 20 minutes and will most likely save you any where from eighty pounds to a few hundred pounds!

Making a claim will generally cost you a few years of NCB or No Claims Discount. The insurer will strip around 2 years as a standard practice off your current allowance that you have build up. That means if you had seven at the beginning of the year and you make a claim in that same year, you will end up with 5 being awarded you come the end of the year. Now many insurers offer to Protect your NCD which is great, but many times this is only valid if you stay with that insurer! If you happen to move insurance companies the new insurer will still penalise you. Ask before you assume.

level of cover required.

• You are entitled to a cooling off period. Usually 14 days.
• There should be no small print/difficult language in policy documents.
• If you are not sure about anything ask your insurer to explain.

Always check your policy VERY carefully. You should not be confused by the wording. If in doubt ask your insurer or insurance advisor to explain anything that you are confused by.