What is car insurance no-claims bonus?

What is car insurance no-claims bonus and why is it so important? When taking out a car insurance policy, keep in mind that your driving record also counts. And that, depending on it, the final price could decrease or increase.

Our driving record, a decisive factor

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Have you filed several accident reports over the last few years? Or perhaps you haven’t filed a single one in all the years you’ve been driving. Such a reality is a key aspect when calculating the final price of the policy, especially if you choose the right insurer. Which, with so many options, is not easy at all. However, there are tools like Rastreator to compare all the offers on the market and get cheap car insurance.

But… why is it so important? Keep in mind that insurers, when setting a price, examine each case carefully. Obviously, being a driver with a long history of collisions behind them implies a greater likelihood that the costs the insurer will have to bear in the future will be considerable. Similarly, if you are one of those who have no claims, the price of your premium should be lower.

In this way, the record will determine certain penalties or bonuses on the final amount. And you could take advantage of this.

Bonuses of up to 60% off the final cost of your policy

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As we have already explained, bonuses are discounts applied to the final cost of premiums, established based on a benign or favourable accident record. The final amount must be set on a personalised basis, according to the data associated with each driver.

It should be noted that the percentages applied are not trivial: in the case of policies with the most comprehensive cover, these can reach up to 60% off the final amount. And up to 30% if the policy taken out is third-party only.

It is advisable to be fully informed of the conditions each insurance company sets for applying these bonuses, as they vary. In some cases a discount will start to apply after just a couple of years without caused claims, adding an extra 3 or 4% each year, while in others up to 20 years may be required. And, of course, check that these discounts apply to the specific policy type you are going to take out.

On the other hand, if you have had several accidents, it is also worth taking out a policy with the insurer that applies lower penalties. Obviously, if you were not at fault in the accident, you should not worry, as your insurer will not have had to pay out any money.

Keeping your bonus when switching insurers

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At this point it is again essential to use tools that let you compare the options offered by the various insurers.

You may consider switching company, not because of the bonus itself, but for other many aspects, such as customer service, breakdown and towing service, the number of cover options, and so on. With the price comparison tool you can check how much the new premiums would amount to. Here it is also worth reading the reviews other users provide.