No claims bonus

A no claims bonus is a reward for those who do not make a claim on their insurance policies for a specified period of time, usually over a 12 month period. Its value differs from insurer to insurer, but if you don't make a claim you can expect to receive a discount on future premiums.

Often the longer the claim-free period, the bigger the reduction in your premiums.

Top tips

  • No claims bonuses have become a much valued component of many people's personal insurance strategies, and they will usually try not to claim for incidents or losses that are largely covered by the excess.

 

 

 

  • The maximum no claim period is usually set at five years, and at this level, premiums can be discounted significantly. This makes a no claims bonus a very sensible thing to pursue.

© Copyright Daily Mail & General Trust plc