No claims car insurance

Did somebody say: No claims bonus? Not sure how that applies to your car insurance? Here’s the what it means in a nutshell: 

You didn’t make a claim this year on your car insurance policy, so you’re entitled to a premium discount.

For every year you don’t make a claim, the more your discount increases, and the less premium you pay. Think of a no claims bonus (NCB) as a reward for being a safe driver.

Want to learn more about no claims bonuses and other features? Read Mozo’s Car insurance features and benefits here.

A no claim bonus can also be referred to as ‘no claim discount’ and ‘safe driver discount’. But how is it calculated? It’s usually dependant on the type of licence you hold, the history of your driving record and how many years you have not made a claim on your car insurance.

Below is a guide for full licence holders. Remember, this is a guide only and the discount and calculations will vary between insurance providers:

My no claim bonus is excellent. Can I protect it?

Some insurance companies will offer a feature at an additional cost that protects your no claim bonus. After working so hard at being an exceptional driver, you’d want to hold onto that discount! 

But you need to ask what the exclusions are. You may be covered without paying excess if someone who isn’t insured hits your car or someone rear-ended your car at a shopping car park and didn’t leave a note with their details. But will you be covered if you’re at fault in an accident? That’s something you need to double check.

What will affect my no claim bonus?

Someone else caused a road accident:

Here’s one thing for certain - if you’re involved in an accident and not at fault, then your NCB remains intact and the other party’s insurance should cover damage costs. Even if the other party does not have the appropriate car insurance, your insurance provider can cover the damage on your behalf without affecting your NCB, but that’s something you’ll need to ask your provider about.

You caused an accident:

It all depends on how much damage is caused to your car and possibly the third party. If it's a minor repair, then perhaps your NCB discount will just be downgraded. If your car is deemed a write-off and your insurance company needs to pay it out or replace it, it’s likely your NCB will be reduced or eliminated. Not to worry, it won’t be long before you build up your NCB again. Remember: if your NCB reduces, it probably means that your premium will rise.

The fault is shared:

In the event of an accident where the fault is not blamed on any one particular party, then both insurance companies of each party are likely to share the cost. Will your NCB be affected in this instance? Probably, but it won’t wipe it out. It may reduce your discount but rest assured, your NCB something you can build up again over time.

What if my car gets stolen or damaged by poor weather?

Your insurance provider will likely be lenient with this kind of your misadventure. After all, it wasn’t your fault, right? What’s more, your NCB should remain intact.

As a young driver, how can I improve my NCB?

You may find that you may not be receiving the same level of NCB discount as your full licence holder friends and family. Young drivers are considered riskier, so you may need to wait a few years to prove to your car insurance company that you’re a safe driver and worthy of a discount.

So, what's the moral of the story? Avoid accidents by driving safely. That way you can grow your NCB and hold onto it for longer. Simple.