How to make the most out of your no-claims bonus
Your no claims bonus is one of the most important aspects of your insurance policy. By accruing a no claims bonus you can lower your insurance premium and save yourself valuable money. There are various benefits of having a no claims bonus compared to a person without any no claims bonus. Most insurance companies will ask for a certain length of no claims bonus in order for it to count as a positive. You should let your potential no claims bonus be an inspiration for you to drive more safely and with more awareness.
- Protect Your No Claims Bonus – You could have spent years building up a large no claims bonus and all it takes is a minor bump to lose all that hard work. Many insurance companies will now offer you the ability to protect your no claims bonus once you have achieved a certain number of years. Commonly there is a minimum of three or five years no claims before you are allowed to go ahead and protect it. By opting to protect you no claims bonus you can ensure that even if you have that minor bump, you don’t lose your bonus.
- Shop Around – If you have built yourself a substantial no claims bonus and your insurance policy is up for renewal then you can use your no claims bonus to your advantage. If you shop around for other quotes and use your large no claims bonus then you will more than likely find yourself a cheaper policy which will save you money off your premiums.
- No Claims – Be sure how your insurance companies no claims bonus scheme works as they differ from insurer to insurer. For many insurers no claims does not mean no fault. If you have an accident and it was not your fault you may still lose your no claims bonus. After all the bonus is awarded for you not making a claim, regardless of fault. So to make the most of your no claims you need to be sure what the rules are on your policy.
So if you have a no claims bonus that you have built up then make the most of it if you can. Don’t risk losing it because if you do you could see a rise in your insurance premiums and the costs can be quite substantial. If you are unsure of your no claims status it should be on your renewal or you can contact your insurer direct and ask them to clarify this for you.