Car Insurance: No Claims Bonus

If you are fortunate enough never having to make a claim on your policy during the five consecutive years of your driving, then you will be eligible for your No Claims Bonus and this is really a good thing if you want to get a cheap car insurance. The car insurance companies allow a discount on this type of claim (usually ranging from 50% to 70% off) from the insurance premiums. So it will suit your while searching for the best insurance deal.

If, after shopping around, you wish to change your insurer for the sake of a better deal, then you'll be able to do so because most insurers allow drivers to transfer their respective discounts to companies of their choice.

So do bear in mind not to make claims on relatively small items such as dents and scratches on your vehicle without establishing how much it would cost to repair. If the repairing cost for the damage to your vehicle is affordable for you, then do pay out of your own pocket. If you avoid making claims on comparatively minor items for five consecutive years, you will be successfully working towards your bonus.

Once you have received your bonus, it would be a good idea to protect it by paying an additional premium. This type of cover would ensure that even if you were to be involved in an accident later on and subsequently wish to make a claim for the damage on your vehicle, you will not lose your bonus by virtue of the fact that you have paid an additional premium.

But as it is with any motor insurance policy, the insurer may have exclusions and might limit the amount of claims that can offer this sort of protection. Should this be the case then the chances are that you might be in danger of losing your No Claims Bonus and will be obliged to start working towards it all over again. Also remember that insurance companies, in order to keep the cost of insurances as low as possible, often have an excess clause (e.g. 100 dollar) in their policies. This would mean that you will be liable for the first 100 dollar- of any claim from your own pocket. This clause has also been introduced so as to prevent claims for minor damages.