Anonymous
Anonymous asked in Cars & TransportationInsurance & Registration · 1 decade ago

UK QUESTION: what is a NO CLAIMS BONUS?????

i have been driving for the 3 years now. I have 3 NO CLAIMS BONUS. I have made no calims.

what is a NO CLAIMS BONUS?????

should i protected my NO CLAIMS BONUS? i have insurance on a third party fire and theft.

17 Answers

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  • 1 decade ago
    Best answer

    It should correctly be called a no claims discount. Your insurance premium goes down for your renewal if you haven't made any claims. You build up your no claims bonus, you have 3 years worth. If you make a claim you lose it, unless you pay for protection in which case you don't. You need to weigh up the cost of the protection against how much your premium would go up if you made a claim to decide whether to take out the protection or not.

  • rowdy
    Lv 5
    1 decade ago

    The no-claims bonus is a discount you get off your premiums for having made no claims. Remember that even if an accident is someone else's fault, and you make a claim, that's a claim.

    The no-claims bonus is worth a lot of money to you if you have a good driving record, but only YOU know how much it's worth to YOU. It's different for everyone. But I can tell you that for most people it's well worth protecting.

  • 1 decade ago

    It's a con is what it is because should you be in an accident with a non insured driver then your no-claims bonus goes out of the window.

    One in 20 vehicles in the UK is not insured, The Motor Insurers Bureau which handles claims from innocent motorists caught up in crashes with uncovered drivers, deals with 36,000 cases a year.

    OK your insurance company will more than likely pay for any damage to your vehicle but you still have to pay a hefty excess and you will find that a perfect driving history counts for nothing as your insurance company deducts how many years no claims they feel fit from your no-claims bonus so be aware.

    All the best,

    Andrew D

  • 1 decade ago

    A no claims bonus is an amount that the insurance company has taken off the cost of your policy for not making a claim.

    You can increase the no claims bonus every year (if you do not make a claim) until you reach a maximum of 70 -75 (differs slightly with companies).If you do make a claim then you will loose all the no claims bonuses that you have accumulated and will have to start again.

    Yes you can protect them, usually for a small fee, the amount of times you can claim varies from company to company,ask for details when renewing your insurance.

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  • 1 decade ago

    The No Claims Discount is a gift, or bonus given by the insurers when you haven't made a claim. It's a way of discouraging you from making "minor" claims.

    They don't have to give it to you, there's no obligation on anyone to make a gift, so it isn't a "con". You have no right in law to any such discount.

    You'll have to calculate whether it is worth it to you personally to protect any bonus.

    Are you sure you have a discount entitlement to protect on third party fire & theft? I wouldn't have thought so, normally it's about you making claims on your insurance, therefore only applicable to fully comp.

  • Anonymous
    1 decade ago

    For every year you drive without an accident you get one year no claims bonus. The more years no claims bonus you have the cheaper your insurance renewal. Protecting your no claims bonus normally costs a bit extra on your renewal but it means that if you are involved in an accident you will not lose your no claims bonus.

    Source(s): 20 years driving with a couple of bumps along the way (10 years no claims bonus now)
  • 1 decade ago

    A no claims bonus, usually indicates you get a discount because you have made no claims on the insurance.

    Insurance company's like to take money, but don't like paying out, so by offering no claims bonus, they try to encourage you not to make a claim.

    If you do make a claim , you will lose your no claims bonus, and will pay more than you are currently doing.

    3 no claims bonus, means you haven't made a claim while with the company for 3 years.

  • 1 decade ago

    No claims bonus or discount is a discout for not claimming on ur insurance. I am sure u have to be fully comp insurance and no claims for 5 years before u can have bonus protection.

  • 1 decade ago

    no claims bonus means that you get cheaper insurance because you havent claimed as the name sugests. each year that you do not claim you will get more an more no claims bonus years making your premium cheaper. i think most companies offer a maximum or 8 years. if you protext your no claims bonus it means that if you have an accident and have to claim you will not loose the discount. however if you do not protect it and you have an accident you will loose some or all of your discount.

  • 1 decade ago

    If you're involved in an accident with another vehicle and it's entirely their fault; and you get your insurers to claim from their insurers, it still counts as a claim. So you'll lose your 'no claims bonus' anyway. If you've been insuring long enough to qualify for 'protected' it makes sense to do it.

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