Should I Protect My No Claims Bonus?

Posted on: 2 May 2022 at 1:04 pm
Claim Bonus

What Does It Mean To Protect My No Claims Bonus?

At Got2Insure, we understand it’s a good idea to protect your no claims bonus and that it’s important to a lot of our customers to maintain theirs. Luckily, there is protection in place to make sure you can keep your no claims bonus even in the event of having to make a claim. We’ve put together some information below to help you decide whether you should protect your no claims bonus. We believe it’s something worth investing in, so what exactly does it mean to protect your no claims bonus and why should you protect it?

What Is A No Claims Bonus?

A no claims bonus can play an important role in lowering your insurance premium every year. If you manage to avoid making a claim on your insurance, then your insurer will not have to pay out. Therefore, your insurance is likely to get cheaper every year with your no claims discount. A no claims bonus, or ‘no claims discount’ suggests you are a safe and reliable driver and cheaper for your insurance providers to cover.

If you go five years or more without making a claim on your insurance, it can result in a noticeably big saving.

What Could Impact My No Claims Bonus?

There are many factors that could have an impact on your no claims bonus, which is why it’s important to protect it.

If you need to make a claim through your insurance, you will lose your no claims bonus. You could lose five years’ no claims bonus through just one accident. If you are in an accident with an uninsured driver, you will lose your no claims bonus by making a claim on your own insurance. 

Even if you are in an accident that isn’t your fault, making a claim can still impact your no claims bonus.

Why Should I Protect My No Claims Bonus?

Protecting your no claims bonus seems like the obvious choice. You never have to worry about losing your no claims bonus, and if you’re in an accident that wasn’t your fault, you’re completely covered. It seems like a win-win.

However, you do have to pay a monthly fee to protect your bonus. This is something that leaves a lot of drivers stuck. Is it worth protecting your no claims bonus for that extra fee?

Is It Worth Protecting My No Claims Bonus?

If you decide to protect your no claims bonus, you will have the extra fee added onto your premium. This can deter a lot of drivers from wanting to purchase no claims bonus protection.

At Got2Insure, we believe this is something that will save you money in the long run. If you get into just one accident, even if nobody was to blame, you will end up paying more than that monthly fee over the long term. If you happen to have an accident without no claims bonus protection in place, you will lose your discount and your premium is likely to increase.

If a claim is made and your insurance provider can’t recover the cost from another party, then you will lose at least a large majority of your no claims bonus.

If I Have Two Cars, Do I Need To Protect My No Claims Bonus For Both?

If you live in a household with two cars, you will need two separate no claims bonus protection policies in place. You need protection for each car. Policyholders are not allowed to share a bonus for one car with another car, it has to be earned for each vehicle.

However, you are able to transfer your bonus if you purchase another vehicle and you are able to take your discount with you if you choose to switch insurance providers.

Choose Got2Insure Today

Our team of specialists believe one of the best things you can do is protect your no claims bonus. Every year that you drive without making a claim can make a massive difference to your no claims bonus, but just one minor accident can make a huge dent in your premium. Even if nobody was to blame, or the other driver was at fault; making a claim can still have repercussions on your discount. Click here to read more about our no claims bonus protection.

If you’d like some advice or guidance on our no claims bonus protection, please get in touch with a member of our expert team today. Call us on 0344 854 0689 and we will be more than happy to assist you. Our team can answer any questions you may have regarding your insurance.