It’s only fair that you should be rewarded by your insurer if you don’t make a claim for a long time. It proves that you’re a safe driver and that you have managed to stay safe on the roads for a long time. This proven track record is known as your no claims bonus and it can be a great badge to wear when it comes to getting a car insurance quote.
Many insurers allow you to take your no claims bonus with you when you opt to switch – they would rather have your custom than let you stay with your current insurer. You will need to contact individual insurers for their specific criteria but it is generally the case that your no claims bonus will remain with you whilst switching insurers.
However, if you are purchasing a policy that is different from the one you previously had, it may not always be the case that you can keep your no claims bonus. You need to read the small print carefully and make sure to ask the questions before buying a policy. If you are moving from a third party policy to a comprehensive one there may be a few more complications.
If you choose to stay with your current insurer when your renewal comes round, you will be offered some manner of discount, in most circumstances, if you have notched up another year of not having made a claim. This level of discount will vary from firm to firm and some have a certain cut off point. Four years is typically what they are looking for before you become eligible for a healthy looking discount.
Your no claims bonus is something you must keep safe and it can make a huge difference to the price of your premiums. The discounts available are truly worth having and can be carried from one firm to another. There are exceptions and there will always be terms and conditions all over the place. You just need to ask the questions and read every last letter of the small print.
