Insuring your Motor using Discounts from RAC No Claim Bonuses

RAC No Claims Bonus Discount on Car Insurance: We all know how your car insurance premium can rocket after a claim, so is it worth paying out extra to the RAC to protect your built-up no claims history? What this means is that during the 12 months of your insurance cover, if you or a third party have not made a claim against your insurance, you will be rewarded with a years no claims bonus. Checked with insurance company- yes you can claim but your premium will rise next year. A car insurance premium is calculated on an assessment of risk which can be quite complex. A no claims bonus discount is much more straight forward though as it shows historically you are a good driver and less likely to make a claim. Accumulating no claims bonuses can significantly reduce you're your car insurance premium. As with anything else in life there are terms and conditions of a no claims bonus discount. Remember, it is a no claims bonus discount, not a No fault discount.

If you have proven that you are a low-risk driver over time your insurer may simply scale your discount back, for example from 5 years of no claims to 3 years instead. While having no claims discount protection may mean that your discount is protected and stays in place, the fact that you have made a claim doesn't go unnoted. This means that while your discount may remain, your perceived risk may still go up and you still may face premium rises in the future due to your risk of making a claim. Named drivers earn their own no claims discount.

Remember that every insurer interprets no claims discount protection differently; for example even if you have protection in place this may not apply on some policies if you are perceived to be at fault - if you didn't take reasonable steps to secure your car against theft, or were driving carelessly.

You should always protected you ncb where possible because once you have lost them, they are gone forever. Aim to protect the NCB, but not renewing insurance every year don't lose the NCB, and insurers will do more to keep your custom. Nowadays, many/most people change their Insurer every year because loyalty is no longer valued by Insurance companies so prices are hiked at renewal. What this article doesn't explain is whether or not, after making a claim, your no claims discount remains intact if you go to another Insurer. Budget Insurance is a trading name of BISL Limited.

So, as a 'reward' from theRAC for claim-free driving, and as an incentive to keep up your good track record, insurers will give you a no claims discount that will help to knock down the price of your policy. Most car insurance providers will offer a no claims discount after you've successfully driven claim-free for one year, with the discount increasing incrementally every year after that that you continue to remain claim-free. Remember that protecting your no claims discount will mean that you are paying more for your car insurance. Proof of no claims discount is required.

This is where R.A.C. no claims discount protection comes in - it rather usefully ensures that if you do need to make a claim on your policy, your hard-earned discount won't be affected. Protecting your no claims discount is a way to ensure that you won't lose the financial benefit of years of careful driving just because you suddenly need to make a claim. Though protecting your no claims discount can seem like the wisest thing to do when you take out a car insurance policy, it is still worth weighing up the cost to see if it will really be worth it for you. Buy online and a 30% premium discount.

Car insurers like people who don't make claims because it means they don't have to pay out.

Paying this additional amount isn't likely to be worth your while if the extra you'd pay in premiums after making a claim is less than what you would have to pay to protect your no claims. In fact, you can usually only make one or two claims during the policy year without losing your no claims discount protection, after which any subsequent claims will not be covered. It's worth noting that sometimes no claims discount protection may not be as necessary as it sounds - not all insurers will immediately snatch your discount away from you if, for example, you have made no claims for the past 4 or 5 years. A no claims bonus from one previous policy can only be used on one policy.

Generally you'll be able to see your no claims discount with the R-A-C increase year on year to a maximum of 5 years, at which point you could see your premiums reduced by as much as 60-70%. Unfortunately, the likelihood is that despite your blemish-free driving history, your insurer will erase your no claims discount and ramp up your premiums accordingly. Having no claims discount protection doesn't mean you're 'invincible'and can make as many claims as you like, scot-free.

Protection for your no claims discount can be an effective add-on to your car insurance policy and can mean you don't end up paying over the odds for your policy if you've had to make a claim. But I have a protected NCD I said Oh yes she replied but your insurance will rise.

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