Question: I am about to renew my car insurance and I wondered if what I read was correct regarding no-claims bonus protection. I have 23 years of driving with no accidents that were my fault.
I have always paid to protect my bonus but I recently read that if I didn’t protect it and had an accident that was my fault, I would only lose a few years of my bonus. Is this correct? So for example if I had an accident that was my fault, I would only have 21 years bonus.
Answer: Generally speaking, insurers will only give you credit for five years’ worth of no-claims bonus – so the fact you haven’t claimed in 23 years, while impressive, will not have any extra impact on your premiums.(Some insurers may give you credit for up to eight years no-claims.)
However it is true that some providers will only reduce, rather than wipe out, your no-claims bonus (NCB) if you make a claim.
In your case, this could mean your five-year NCB being reduced to, say, two years: this would cut your no-claims discount, but not by as much. Not every company does this, so check before you sign up. And bear in mind that whether the accident is your fault does not matter here: your NCB will be affected if you make any sort of claim – even for theft of your vehicle, or a no-fault accident.