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From now up until Christmas, we are will be dealing with commonly asked questions our experts come in contact with on a regular basis. First up; No Claims Bonus.



A no claims bonus or no claims discount as it can often be called refers to the amount of years a driver had an insurance policy and not made a claim on it. A no claims bonus will offer you a reduction in the cost of your premium and can be very handy to have. The size of reduction varies on the amount of years you have built up, however most insurers have a limit such as 5 or 6 years. 

If you make a claim, your no claims bonus will be affected either by it will be lost or reduced. This can affect your premium for the following year if you did not have your no claims bonus protected. Your no claims bonus can be affected even if the claim was for something that was not your responsibility, such as your car being stolen. If you make a claim against your own insurance for an accident for example, and your insurer can resolve the issue with the third party involved, (e.g. if they turned out to be at fault), your no claim bonus very well may be reinstated if the costs are recovered by the third party’s insurer.



Most people aren’t aware of No Claims Bonus Protection and your insurer will often give you the option of adding it for an additional fee if asked. That means that by paying for protection on your no claims bonus, in the event of a claim, you not lose any years of no claim bonus which have built up. This means that your discount will be protected in the event of a claim and in the long run, you will save money.  It is worth keeping in mind and reading the small print of your policy documents for any exclusions or limitations on your policy regarding no claims bonus protection.

Sometimes, your insurer may protect your no claims only up to the value of a certain amount or for a number of claims per year. For example you may be protected if you make up to two claims in three years only up to a certain value; if you exceed this amount then you may lose your no claims discount. Make sure you read your policy documents thoroughly and are fully aware of the limitations.



Our sales agents will often be asked what step back bonus protection actually means. Simply put, it means that if you make a claim or someone else makes a claim against you, you will lose part of your no claims bonus. For example if your no claims discount is 50% and you have a claim, then it could step back to a lower percentage, such as 30%, thus giving you less years no claims to avail of higher discounts on your policy. Usually you can lose two years no claims, so you may go from 6 years claim free ‘stepped back’ to 4 years and this in turn will affect your no claims discount.

The main things to remember when you are getting a quote for your motor insurance is to be honest with your insurance company as we have pointed out previously. Don’t over exaggerate your years no claims to try and get a cheaper premium as you will have to produce proof of your no claims from your previous insurer. 


If you want to see your question answered here on our blog or if you are interested any kind of insurance, give us a call (1890-746-759). Our website is also here to answer any of your questions and to give you a FREE quotation on your insurance. We also have a twitter and a facebook page that you can use to contact us, should you have any questions.