No Claims Discounts
A no claims discount (most often referred to as a No Claims Bonus or NCB) is a bonus given to insurance carriers by their insurance companies for not making any claims for a certain period of time. This bonus is the easiest way for an insurance holder to reducing his or her premiums. The value of a No Claims Bonus varies greatly from company to company. In some companies a No Claims Bonus can entitle an insurance holder to up to a 60% reduction on premiums and other companies will only grant 15% or 20%.A No Claims Bonus must be earned by the insurance holder over a certain period of time. Most insurance policies specify that for every year a driver goes without making any claims they will receive another year’s No Claim Bonus. The bonus can increase with consecutive years of no claims but usually maxes out at five years. However, a few car insurance companies will give increasing reductions on premiums for up to eight years if an insurance carrier makes no claims on their car. If something happens to your car and you are forced to make a claim, you can often still keep your No Claims Bonus if the insurance company does not lose money. For example, if someone hits you in a parking lot while you are parked, and it is deemed completely the other drivers fault, your insurance company may be able to collect funds for damages to your car from the faulty driver’s insurance company. In an instance such as this, your insurance company may still grant you your No Claims Bonus.You may find that like car insurance you can earn no clams bonus on your contents insurance and you home insurance, but it will be less a discount due to the nature of the insurance. When you are driving you are put at a higher risk, but you home is at a less of a risk but putting things like extra locks, on windows and doors and fitting a home alarm sistam will help you get a bigger discount .
