So when an accident
does occur the policy holder will understandably be reluctant
to claim, as the loss of their No Claims Bonus will be substantial,
not just on that one occasion but over subsequent years. The
temptation will be to settle outside of the policy if at all
the damage caused may be so significant that the policy holder
is left with no choice but to claim from their insurance. By
so doing their No Claims Bonus, accrued through years of careful
driving, will be null and void.
One way of avoiding
this scenario is to take out No Claims Protection. This is in
effect a second insurance policy, which protects the driver
against suffering the loss of the bonus earned on the first
policy. It means that, by claiming on the second policy, the
holder retains his or her substantial discount on the first.
Should I protect
my No Claims Bonus?
Whilst it may seem
to be an arrangement that is too good to be true, No Claims
Protection does of course itself cost money, and the cost of
this policy will inevitably detract from the saving made on
your No Claims Bonus, and this of course is the essential point.
“Should I protect my No Claims Bonus?” what really
needs to be considered is the combined cost of your reduced
car insurance premium and your No Claims Protection, and whether
this represents a significant saving on what you would be paying
for your car insurance if there was not a No Claims Bonus applied.
Check car insurance quotes at websites like those listed above
and see who offers the best premium for protecting your existing
no claims bonus if you do indeed wish to protect your current
no claims bonus you have accrued on your car insurance policy.