No claim Bonus car Insurance
No claim bonus car insurance. Of all the attempts to reduce car insurance costs, the most effective way is accumulating years of No Claim Bonus.
You can claim a discount on your cover if you have gathered more than five years of claim free motoring.
It sounds simple in theory but more complicated in practice. Different insurers make up the rules, which can cause confusion for those trying to make a claim.
What is a No Claim Bonus car Insurance?
Every year you drive without lodging a claim on your vehicle insurance, you get a discount on your next renewal.
These discounts, accumulated every year, reduce your car insurance costs the more years you drive without making any claims.
Claiming – Tabulating the costs
NCB deductions is an issue that has recently been raised in a motoring comments section.
After lodging a claim, Churchill the insurer reduced a client’s NCB from eight to three years. A much larger drop than she anticipated.
The client wrote: “I have gone eight years without filing a claim, however, following an accident, Churchill informed me that I would lose two years of my NCB. Five years is all they will consider, leaving me with only three years of NCB.”
“I feel this is greatly unfair, and I’m thinking of shopping around to find an insurer that considers more than nine years. Anyone with further advice about this?”
How many NCB accumulated Years can They deduct?
The norm within the industry for NCB deduction is two years when a claim is made.
We contacted Churchill and asked what their position was on the issue of five years’ worth of NCB being deducted after a claim.
Their spokesperson said: “Churchill offers an 80% discount to new clients as an introductory proposal for those with eight or more years of NCB.
We continually incentivize those with NCB’s of up to 9 years, as long as they retain their status of not claiming.
However, those carrying NCB’s of five years or more before claiming have their NCB’s reduced by two years following their initial claim.”
This appeared excessive, therefore we spoke to the Association of British Insurers for them to shed some light on the matter.
We found that there isn’t an industry-wide standard, it is basically up to the insurer.
The ABI’s Stephen Sobey: “Each insurer uses the NCB tool differently, an industry-wide standard does not exist. However, the car insurance market in the UK is very competitive and we suggest shopping around for the best possible quote.
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