No Claims Bonus Explained - Car Insurance

A No Claims Bonus is a reward given to drivers who have not made a claim on their motor insurance during their policy period, which is usually for one year. This no claims bonus is then translated into a saving on the following years premium as a reward for not making a claim. Each year that the driver does not make a claim they are rewarded with another years no claims bonus which when added up can relate to substantial savings when taking out yearly motor insurance premiums. Most companies recognise a maximum of five years no claims bonus, which as stated can relate to a substantial saving. Due to the fact that it has taken the insured five years to accumulate the maximum NCB how can today's driver help to protect that no claims bonus?

How to increase your chance of a no claims bonus:

Drive Carefully and follow the highway code - A good way to help protect your no claims bonus is to drive carefully and observe the rules of the road. The simplest rule to be followed that can greatly reduce risk of accident and therefore protect your no claims is adhere to speed limits. It is a fact that drivers who exceed the speed limits put themselves at a much higher risk of being involved in an accident and therefore loosing their no claims bonus.