In many cases, those with car insurance are able to receive a no claims bonus. This usually occurs when the individual has gone a period of five years or more without filing a claim of any type.
What To Expect
What you might not be aware of is the fact that you can receive 60-75% off your car insurance premiums for simply driving safety, making it well worth the little bit of extra effort it takes to avoid accidents. While some of these incidents might be unavoidable, you should do your part and attempt to keep your car safe at all times.
One thing to remember is that this is not a not fault bonus, but rather a no claim bonus, so you will lose the bonus if you are in an accident of any type, even if it is the other person’s fault. Even if your car is stolen, which would not be any fault of your own, you will lose your bonus.
This is simply how UK car insurance works, even though it does not seem fair. This is because your insurance company will have to recover the costs in these situations, which costs it money.
A consideration that could change this fact occurs when one party admits fault in the accident. In these cases, your insurance company might not have to fight to regain any of the money involved and, therefore, might reinstate your bonus.
They do not have to do this, as the no claims bonus is not the law, but they very well might make an exception. Your car insurance does not want to lose money in this situation, but also does not want to lose a customer.
Therefore, they will likely do everything in their power to retain you as a client if you are not at fault for the accident. Another thing that the insurance company can do in this situation is reduced your no claims bonus.
You will begin to receive these bonuses after a predetermined period of safe driving. They usually max out at around five years. Your car insurance company can choose to bump you back to two or three years of safe driving, which will lessen your discount, but allow you to keep some.
A scenario that might come up when dealing with these car insurance bonuses is one where a judgment has not yet been completed before a person has to renew his or her insurance. In these cases, the driver will likely have to accept a lower bonus for the time being, but will be reimbursed if the case is ruled in his or her favour.
This means that if the car insurance finds that you were not at fault and decides to give you your bonus back, you will be given the money back and offered lower premiums throughout your term.
There are also ways that you can protect your UK car insurance bonus so that it will stay intact if you are in an accident. This protection will cost you a little bit of money, but it might be worth it if you are in an accident. If you are in more than one accident in quick succession, however, you will still lose your UK car insurance bonus.
This protection also might not stop your premiums from increasing the following year, it will be factored into your next premium calculation. In the end, this added protection might protect your premium prices temporarily, but it might not be a permanent solution if you are in an accident.
Please Get Insured, It Saves us all Money
Many are unsure if this protection is worth the price, but it actually is if you truly understand UK car insurance. This is because even though you will have a much different claims history, you will still have your discount. This means that you will have the same percentage of a discount as you had before the accident, but just may have a different starting point due to your higher premiums. It will save you a great deal of money still, especially if your premiums rise significantly.
Something to remember is that all UK car insurance companies calculate these discounts differently, which will influence how much you end up paying. Some companies will apply a discount in the middle of the process as the discount only applies to certain aspects.
These are highly complex formulas that are used and you likely will not understand where the prices came from in the end, but they basically try to calculate how much of a risk you are as a driver.
A UK car insurance company does not want to charge you too little because it means that they will lose money if you are in an accident. If they charge you too much, however, you will likely move to a different company.
Therefore, most companies do try their best to provide you with an adequate price on UK car insurance. There is no really easy way to figure out what your bonus will be since every insurance company applies it differently.
If you do not yet have a UK car insurance bonus, it should be noted that some companies offer them sooner than others do. These companies give drivers a chance to save money very quickly and end up being less expensive.
The next time you search for UK car insurance, tries to find a company that offers these bonuses early, as this will allow you to save a great deal of money in the long run.