Most car insurance policies operate a no claims bonus scheme. Each car insurance company will set out in its policy
the scale of no claims bonus that will apply. After a policy has run for 5 or more years claim free, a maximum bonus
of 60% to 70% will be allowed. At this stage motor insurance companies will often allow bonus to be protected or guaranteed.
Cover varies between car insurance companies, but typically the situation will be as follows:
- Normal no claims bonus - builds up year-on year unless a claim is made, in which case bonus is reduced by 2 years
- Protected bonus - car insurance policies allow for up to 3 claims over a specified period before bonus is lost
- Guaranteed bonus - for an additional premium, bonus can be retained irrespective of how many claims occur
It should be remembered that no claims bonus can be lost even if a claim is not your fault, e.g. if the car is stolen.
If you want to know more about no claims bonus you can talk to one of our specialists on 8070 420 3896.