Articate

The car insurance no claims bonus is something that will have a major impact on the overall cost of your car insurance each year. The idea behind this bonus is to basically reward those drivers who drive their vehicles carefully and responsibly because these people will obviously avoid being involved in any road accidents, and therefore will not be making any claims.

For every year you avoid having an accident, and therefore avoid having to make an insurance claim, your no claims bonus will kick in and reflect this fact. Therefore the car insurance quote you receive from your broker each year should be discounted in accordance with this no claims bonus. This no claims bonus policy does of course differ between brokers as many will offer different rates, but in general the longer you can go without making a claim, the greater your discount will be every year, even if you happen to switch insurance companies during this time.

The problem with these no claims bonuses, however, is that they can be slightly unfair at times because sometimes you may be involved in a road accident that wasn’t your fault at all. In these instances you may well discover that just making an insurance claim will be enough to put a stop to your bonus, irrespective of whether or not you were to blame for the accident. The same thing will also apply if your car is broken into and stolen, for example, but unfortunately it’s just one of those things that us car drivers have to accept.

Overall the thing to remember about no claims bonuses is that in the long run you can receive substantial discounts on your car insurance if you drive very carefully, do your best to avoid being caught up in any accidents, and therefore avoid having to make a claim. Discounts of up to 75% are not uncommon for drivers who have a clean driving history, so it’s in your best interests to drive responsibly when you’re out and about on the roads. Car insurance companies generate more profits from those drivers who never have to make a claim, which is why the no claims bonus was invented to reward this group of drivers.