Car Insurance And Your No Claims Discount

For every year that you do not make a claim on your car insurance you earn a reduction in your insurance premium called a no claims bonus. This reduction can be substantial, with insurance companies knocking up to seventy-five per cent of the price. It may be cheaper to pay for minor repairs yourself than to make a claim and lose your no claims bonus.

If your car is vandalised or stolen, or you are involved in an accident that is not your fault, you will normally still lose your no claims discount. It is irritating that even if you are not responsible you still wind up having to pay more for your car insurance if you make a claim. From the insurer's perspective, if the costs of your claim cannot be recouped from another party or insurance company, then you will lose your no claims bonus.

For this reason, there are car insurance policies on the market which cover your no claims bonus even if you do have to claim, and even if you are the one who caused the accident or reason for the claim. This type of policy will normally permit you to make a limited number of claims within a specified period without the claims affecting your no claims bonus.

Many insurers limit who they will offer a protected no claims bonus to low risk drivers. If you are perceived to be a high risk customer, perhaps because you are under twenty-five or have recently made claims, then you could be refused this kind of policy.

These policies will protect your discount, but you will pay slightly more for privilege. You should weigh up the extra cost of the policy against how much you could have to pay if you did need to make a claim. If you cannot afford a big jump in your premium then it is worth paying for the additional cover.

If you are trying to build up a no claims discount, there are companies that offer policies which allow you to earn reductions in your premium every ten months instead of every year. If you are insured on someone else's policy, for example your parent's, they can get a policy where you begin to earn no claims bonus even though you are insured on their policy. This will really help you to get a better deal when you get your own car and need to get your own insurance.

Likewise, if you worked for a company and used a company car without making a claim, some companies will take this into account for your own car to give you a no claims bonus.

If you have no claims bonus but you still need cheaper car insurance then there are many other factors which will affect your premium. Your choice of vehicle, from style to engine size, will make a big difference. If you are female, some companies will give you cheaper prices because women are less likely to claim and when they do, the settlements are usually smaller. Do shop around and you will see a big range in price, so there are deals to be found.

Kwik Fit Insurance can offer some excellent prices for cheap car insurance especially for women, mature drivers, drivers with full no-claims bonus, and drivers of older vehicles.