What is a no claims bonus and how does it operate?
If you are a good client and have not made any claims on a policy,then the insurance company would like to reward you for being careful by giving you what is called a ‘No Claims bonus’.This is given by subsidising your future premium payments.One more bigger advantage is that if you have a policy eligible for a noclaims bonus and you are buying a new or a more expensive car,then the same old policy can be transferred,with all the benefits you have gained.Since the no claims bonus is usually a percentage of your premium, and if you buy a car which attracts a very high premium,your efforts can translate into substantial savings. This is how a no claims bonus works: If you have not made any claims in the previous policy year(year1),then you get a 20% discount on the premiums in the next policy year(year2).If you are lucky enough to stay away from claims another year(year2), you get a 30% discount on the premium in the third year.If your lucky time continues ,then in the fourth year you ar
