Why no claims car insurance offers the best deal

A car crash can cause untold pain and misery if it’s a particularly serious one, so there’s unarguably a need for car insurance in such circumstances, but for those that haven’t had an accident, they can be surprised to find their premiums rise even if another person scraps past their car. In this guide we look at why no claims car insurance is essential.

What is no claims car insurance?

No claims car insurance is basically a discount based on how many years a driver has gone without claiming on their car insurance. This discount increases every year that a driver goes without a claim; drivers can expect to get anything up to 75% discount, with a maximum amount of 5 years that can be built up.

Recognition for safe drivers

For the driver that hasgone their whole driving life without a single bump or scratch, no claims car insurance is a god send. In this instance, a person can be recognised as the careful driver that they are.

What if a no claims driver has a crash?

Usually your no claims discount (however many years that have been building up towards it) will start back to square one after a serious crash. However it’s important to remember that other factors are important in determining your insurance premium, such as age, amount of time you’ve been driving, what you drive and where you live. So, in short, all is not lost is you loose your no claims.

Should you protect your no claims bonus?

Additionally there is an option to protect your no claims bonus after five years; whilst there is much debate around whether or not it is advisable to take up such an offer, it is certainly one to consider; there is also something to be said for how long you choose to protect your no claims bonus. For those on a protected no claims policy that do make a claim, they are, on average, likely to be better off by £155 as compared to an identical driver with an unprotected policy.

As well as this, the relatively low addition to your premium (which currently stands at around £62) means protecting your no claims bonus is well worth considering.

Your no claims discount can be transferred to another car should you wish to do so. If you do the switch though before your policy is up, the year will not be included in your no claims bonus. 

You have two years to re-use your no claims proof. If you don't re-use it, should you wish to make a car insurance policy again, your no claims discount will start from 0.

You may want to read about: PAYG Car Insurance

Hopefully you’ll have a better idea of why you should take out no claims car insurance policy after 5 years without a claim, and what the benefits are of protecting that well earned no claims. If you are left in any doubt about no claims car insurance, just remember that even a little car park bump, of no fault of your own, can push your premiums up without it.