Your no claims bonus could mean that you get a huge reduction in your car insurance. If you have been in an accident but you want to try and protect your no claims bonus then there are a couple of things that you can do about this, some of which can be found below.
What Is a No Claims Bonus?
A no claims bonus is given to you when you haven’t had an accident in quite some time. Even if you do have an accident, you can still protect your car by making every effort to make sure that you don’t claim on your insurance. When you haven’t made a claim for a while, you can actually get a huge discount on your premium for the following year. Some car providers will ask you to have over 8 years of no claims before you can start to receive the discount, but the general standard figure is around 5 years.
Your discount will generally be around 30% but it is more than possible for you to get 40% off your premium and this is especially the case if you have not claimed for a significant amount of time. The maximum discount tends to be around 60% and this is a huge saving and this is especially the case if the insurance for your car is very expensive.
Protecting your Bonus
If you have an accident involving a pedestrian then there is a high chance that you will lose some of your discount. This generally happens when you either take some responsibility, or all of it. If someone else is at fault however and they do admit to taking all of the blame then your policy will remain intact and you should not have to worry about losing it. If you were at fault for
your accident then it is possible for you to avoid going through the insurance, if you are willing to take care of the repairs yourself.
Some insurance companies will even give you the chance to take out a safeguard for your policy. This means that if you are able to make a claim, your bonus would stay completely intact. If you happen to make two claims in the same year for example, then this bonus will either be removed or it may even be significantly reduced.
You may also try and pay an excess for your policy and this will help to reduce the cost even further. The problem here is that the more you offer to pay, the cheaper the insurance will be but you may run into issues because you are then responsible for covering the damages to your own car. If you can’t afford this, then you’ll run into problems. If the accident is very minor and you only have a small dent then it may not be worth you going in for a claim because the dent or ding may not be causing issues for your car. If the other party’s car is not damaged either then you may not see a need to report the accident, but you always should, even if you don’t plan on making a claim.