The No Claims Bonus Explained
|Money : Insurance|
One of the most well known phrases when it comes to car insurance is the so-called no claims bonus.
But what is the no claims bonus exactly?
Well this is literally a bonus that you get if you do not make a claim for a set number of years that the policy has been held in your name.
So what are the benefits of this?
Well potentially it can be worth a lot of money, as the more claim free years that you have clearly the more attractive you are to insure as the chances are less than most that you will claim in the following years.
Therefore this means that the standard gross price of the insurance will usually be cut offered to you by the insurance, often quite heavily - not just 10 or 20% but up to around 70% has been heard of!
One slightly counter intuitive thing incidentally is that some car insurance providers actually let you guarantee that bonus even if you make several claims! Whilst this is strange it does come at a cost, usually there is another 20% or so charge whacked on your car insurance premium for this.
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