If you don’t make any claim on your insurance you will be awarded a no-claims discount on your premium for each year your insurance is held. This usually only runs from 5-8 years maximum but can yield big gains on saving you cost.
We give you a guide below to how it works and how much you can claim:
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If you drive for a year without making a claim, you could get as much as 30% off your premium, according to the British Insurance Brokers’ Association. If you make no claim in your second year this figure could rise to 40%. When you get to five years without a claim, the discount could reach 60%.
If you have an accident that is your fault and you take some or all of the responsibility, you may lose a percentage, or even all, of your no-claims bonus. If the accident is caused by another party, your no-claims discount should not be affected.
You might want to consider protecting your bonus by paying a little extra on top of your annual premium. By so doing, your claim remains intact, even if you make a claim for an accident that was your fault or responsibility. However, even with a protected no-claims bonus, should you make more than one claim in a yearsome insurers will not allow the same protection as others and your discount could be reduced.
A no-claims bonus that is protected will not completely protect you from an increased premium when you renew your car insurance. Insurance companies will take into account the number of claims made and the number of years without claims.