It can be beneficial to build up and preserve a no claims discount
on your motor insurance policy as motorists with a full discount
can make substantial savings on their insurance premiums.
Once you have a no claims discount it is worth paying extra to protect
your bonus against loss in the event of an accident if this is possible
with your insurer.
If you are unfortunate enough to have an accident your no claims
discount is usually reduced by two years if you have to make a claim.
If a claim has to be made under a motor insurance policy your discount
will always be affected unless your insurer can recover its costs
from another responsible party.
If your insurance company can recover their costs or is only stopped
from doing so by a agreement they have with the other insurer involved
in the incident , you may not lose your no claims discount. In the
same way if you are able to recover your uninsured losses including
your accidental damage excess your discount may not be affected.
However your no claim discount can still be reduced when you come
to renew your insurance if your insurer is expecting a claim to
come in or a claim is in the process of being settled.
If this happens your no claims bonus can be reinstated if your insurance
company does not end up having to pay out on your policy.
To avoid the risk of losing you no claims bonus in the event of an
accident ask you insurer how much it will cost to protect your now
claims, it is normally a relatively small amount in relation to what
it can save you on the cost of you policy.
