What does a 'protected no claims bonus' mean?

I am currently trying to find myself a decent car insurance quote. I am entitled to a no claims bonus as I haven't had any claims in the past 2 years. I am however slightly confused by what a 'protected no claims bonus' means though. I keep coming across that phrase throughout the comparison websites and I don't understand the implications for me if my no claims bonus is 'protected'. Thanks.

I am aware this is a stupid question but this is my first time shopping for car insurance lol.

9 Answers

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  • Anonymous
    1 decade ago
    Favourite answer

    If you have a certain amount of no claims you can protect your no claims bonus. Every year, you are offered a discount if you do not claim and after 5 years this could be as much as 60%. However, one accident and you could lose this meaning that the next year you would pay 100%.

    Some insurance companies offer you the chance to protect this. In other words it is an insurance on your insurance. What it normally means is that you will be allowed up to3 claims in 2 years without your no claims being affected.

    Word of warning, you really do have to consider if it is worth it for you. The reason I say this is that although you have your no claims protected, you still have to declare if you have had an accident when you renew. This declaration by itself can raise your premium and if you have a large claim your premium might be raised drastically in anycase.

    For example you have a no claims bonus of 50% and your premium is £200. That means you would pay £100. However, if you had an accident with protected no claims the following year your premium may be forced up to £400 because of the accident but you would still have your protected no claims bonus of 50%, meaning you would be paying £200.00.

    I guess what I am trying to say is do not think just because you have protected no claims bonus, you wont end up paying substantially more if you have an accident.

    I am not saying it is not worth it, it all depends on how much you will pay for it and if it is worth it for you.

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  • Anonymous
    4 years ago

    No Claim Bonus Definition

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  • 4 years ago

    It is when an insurer offers you the chance to protect any 'no-claims discount' you may have. i.e. if you make a claim, your no-claims bonus remains unaffected - if you had 5 years claim-free, you'd still have 5 years NCB if you claimed. I think you need 4+ years before you can protect your no-claims bonus.

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  • 1 decade ago

    It means further insurance at extra cost to insure the savings given by a no claims bonus.

    If you make a claim it is disregarded but with most schemes two claims in a year can lose you a year of bonus rather than the whole bonus

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  • 1 decade ago

    Like it says it protects your no claims bonus.

    If you make a claim, you would normally 'step back' 2 years on your accumulated discount. with protected NCD, you don't

    It does, however, cost slightly more as the insurance company will effictively make a charge for you to take it and it will be governed by a clause that limits your claims to 2 within, usually, a 5 year period.

    Just to confuse the issue even more, a few companies do a 'Guaranteed NCD' again you pay a little more but this does protect your NCD irrespective of the number of claims

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  • 1 decade ago

    read the small print..you might only get to make 1 claim a year and keep your no claims...I made a claim then 2 months later my car was stolen..lost 60% no claims..

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  • Anonymous
    1 decade ago

    It means if you make a claim you don't lose your no claims bonus, which I know doesn't make sense because then its not a no claims bonus, but that's what it means

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  • Anonymous
    1 decade ago

    It means your no claims bonus will not be lost after a claim.

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  • Anonymous
    1 decade ago

    It means your no claim bonus is protested they can touch it.

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