No
claims discount
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 bonue 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.
