Car Insurance And No Claims Discount
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Your no claims discount builds up every year that you do not make a claim on your car insurance. The discount can be significant, in some cases up to seventy-five per cent of the premium, so for minor damage you may decide it is cheaper in the long run to pay for your own repairs than to claim on your insurance and lose your no claims discount.
If you are the victim of an accident that is not your fault, or if your car is stolen, you will usually still lose your no claims discount. It can be frustrating that even though you are not at fault you still end up having to pay more for your car insurance. Essentially if your insurer cannot claim back the costs from someone else, then you will lose your no claims bonus.
For this reason, there are now car policies available which offer to protect your no claims discount even if you do make a claim, even if you are at fault. These usually allow you to make a limited number of claims within say a five year period without losing your no claims bonus.
Most policies limit who can receive protected no claims bonus, so if you are very young or have only a year or two no claims, then you could be considered too risky.
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 haven't got any no claims bonus, then some companies offer policies which allow you to earn every ten months instead of every twelve. If you drive someone else's car, such as your parent's, then 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 when you get your own car and need to get your own insurance.
Similarly, 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.
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