No Claims Bonus is a term used to describe the number of years you have had Car
Insurance without making a claim. Put simply, if you have had Car Insurance for 4 years
and you have not made a claim in that time, then you have 4 years No Claims Bonus.
No Claim Bonus is probably the single biggest factor affecting the cost of your Car
Insurance premium. Every year that goes by without you making a claim is another year of
No Claims Bonus. Generally speaking, the more No Claims Bonus years you have, the cheaper
your premium will be for the car you need to insure. This is because Car Insurance
companies can see that your history regarding making any claims is a good one.
When changing provider, Car Insurance companies will usually ask you to prove your No
Claims Bonus in the form of a renewal notice or a letter from your current Car Insurance
company. If you have several years of No Claims Bonus but then make a claim, the Car
Insurance company will usually apply it's rules of how much to knock back your No Claims
Bonus Years.
Some companies such as Accept Direct ( http://www.acceptdirect.co.uk ) offer to protect your No Claims Bonus for
an extra fee during the quotation process. Having a high no claims bonus can also entitle
you up to 75% discount on your car insurance premium.
Andrew Bowen is the CEO of Accept Direct Limited. Accept Direct offer car insurance to
UK customers through their website http://www.acceptdirect.co.uk
