What is a No Claims Bonus In Car Insurance?

August 18, 2021 By: Bankbychoice.com0 comments

In the blog below, you’ll learn everything there is to know about “No Claims Bonus.”

When it came time to renew your insurance, were you asked for proof of no claims for the previous year or more? Did the insurance agent or broker explain what a “No Claims Bonus” means to you? Allow us to assist you in making it more understandable!

Defining No Claims Bonus

Drivers who go a year or more without filing a claim on their insurance plans are given a No Claims Bonus. It’s a reward scheme in which your insurance company will normally pay you a discount on your coverage for each year you go without filing a claim. The discount percentage increases as the number of claim-free years increases! It’s a method for insurance to reward careful and cautious drivers!

What are the rules when it comes to “No Claims Bonus”

The No Claim Bonus guidelines are in place to ensure that every safe driver is rewarded for their careful and responsible behavior. When it comes to the No Claims Bonus, there are a few things to keep in mind.

• Even if you move insurance companies, your No Claims Bonus is still valid! Simply request a No Claims Certificate/No Claims Bonus Proof from your existing insurance carrier and share it with your new insurance company.
• The discount rate increases as you go year after year without filing a claim! The most reliable strategy to save money on auto insurance is to drive cautiously and get No Claims Bonus!
• If you are judged not at fault in an accident, your No Claims Bonus is normally unaffected, and you will receive a No Claim Certificate at the end of the year.
• Many insurers allow you to use your No Claims Bonus on both cars and receive savings on your premiums if you acquire a second car. Always check to see if your insurer gives this important reduction when insuring a second vehicle!

Still have some concerns on No Claims Bonus? Or want to know the discount percentage you’re entitled to for the number of claim-free years you have? Submit the below form and one of our insurance agents will contact you soon!

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