A Brief Explanation of No Claims Bonuses

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Written by Michael Foote , founder of Quote Goat, with over 13 years experience working in the finance, insurance and currency sectors.

Finding the right quote for your car insurance can be like trying to locate a needle in a haystack. After all, there are tons of different factors that can influence the cost positively or negatively, and the majority of the time the criteria is out of the control of the policy holder themselves. Luckily, there are certain tactics that you can use in order to effectively reduce the cost of your insurance. Read on as we go over everything there is to know about No Claim Bonuses…

In layman’s terms, No Claim Bonuses (NCB) are the number of years that you do not make a claim on your policy and they can help you save money by reducing its premium considerably. The way that they are calculated can depend on each insurer as some will offer a deal that allows the policy holder to build up their first year in just 10 months. With this said, a maximum of five is typically used in order to calculate the discount that a driver receives even if they have 10 or 20 to their name.

Obtaining proof of your NCB can be a tricky situation to overcome as many insurers are reluctant to let you go and may offer cheaper deals to entice you into staying. With this said, you can request a certificate of proof that will then be forwarded onto your new insurance company. In some situations, your current insurer may send you an NCB letter in the post along with a renewal reminder.

It is important to take your No Claims Bonuses into consideration when obtaining an insurance policy for a vehicle. After all, a single crash that causes your insurance company to pay-out can affect all of your hard work and cause you to lose all of your NCBs. If this happens, read our guide on car insurance without a no claims bonus. As a result, it can be wise to opt for Protected No Claims Bonuses that allow you have a certain amount of at-fault accidents without affecting the NCB’s that you have built up. Although this can’t stop your premium increasing after a claim, the more No Claims that you have, the more of a discount you are likely to obtain.

There is nothing like finding comprehensive car insurance at a price that doesn’t break the bank, however you must be prepared to jump at the opportunity when it arises. After all, insurance do fluctuate regularly. For all your insurance needs, check out Quote Goat’s trusted comparison site today!

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