Superquote Definitions / Terms: No Claims Bonus

No claims bonus is a term to describe a substantial discount which can be applied to the calculation of a car insurance quote.

The discount is earned by driving for a year without claim on the policy.  Non fault claims which are fully reimbursed by a third party do not effect no claims bonus and neither generally do windscreen claims, although it is best to check with an insurer first.

Subsequent years of driving accumulate and so having more years of no claims, means a bigger discount.

Although an underwriter will apply different scales of no claims bonus on a scheme, as a rule of thumb, a year is equal to 40% growing to 75% for 6 years, where generally no claims is capped.  Although additional discounts build with some insurer until 6 or more years, generally 4 years is regarded as a maximum no claims bonus.

If you make a claim on your policy, you do not lose all of your no claims discount.  You lose the year of bonus you are building and two more years.  Therefore if John has 3 years of no claims discount and makes a claim, at his renewal he will have a single year.  Multiple claims in a year mean multiple deductions.

You can protect a no claims bonus generally if it is a maximum no claims (4 years or more).  You pay an additional premium but it will allow you to have a claim and retain the discount at your renewal.  Check with your insurer how many claims your protection allows, some are unlimited others allow a number of claims in the year before your discount is penalised.

Sometimes people are able to get accelerator bonus schemes, where their no claims bonus is accelerated, for example they get the discount for three years after a single safe years driving.  The accelerated level of bonus is not always accepted by other insurers at the renewal stage though.

If you are a driver looking for zero no claims bonus car insurance, follw the link.