What is a No Claims Discount on Car Insurance?
Cheap Car Insurance for Young Drivers with No Claims Bonus, It’s a discount for no claims – I know. But what does that mean?
Put simply – you can earn a No Claims Discount (NCD) or No Claims Bonus (NCB) over the insurance year (12 months) by not making a claim on your cheap car insurance for young drivers with no claims bonus policy that would result in your insurer having to pay for things like:
- Damage to your car or someone else’s
- Damage to other property
- Injury to you or someone else
- Financial loss to someone
- How does it work?
- If you don’t claim during your year’s insurance, your insurer will give you a discount at the end of the year on your renewal quote.
If you stay with that insurer, the discount will be applied to another full year’s cheap car insurance for young drivers with no claims bonus with them. If you decide to leave that insurer, they’ll give you a proof of your No Claims Discount (usually just a letter) at the end of your policy for you to give to your new insurer.
NOTE: If you have an open claim on your insurance – where the fault hasn’t yet been decided – you won’t get any No Claims Discount you’ve built up until the claim is fully settled as not your fault.
How much can I save?
Other insurers will usually recognize the number of years’ discount you have built up but the percentage of discount they give does vary from insurer to insurer.
The discount you earn after the first year is often up to around 30% and you can build up your discount over the years, usually up to a maximum of 65%-75%.
If you’re insured with engenie, you can start earning a discount for good driving after just 3 months and any No Claims Discount you earn at the end of the year will be on top of that. It sounds like a good deal to me.
Discounts if you don’t claim
Most insurers will offer cheap car insurance for young drivers with no claims discounts to drivers that don’t claim on their car insurance. They do this because motorists who don’t claim on their policy are considered less risky, and so the cost of their premiums fall.
The size of the car insurance no claims bonus varies between providers, but you could knock up to 24% off your annual premium* if you can manage five consecutive claim-free years.
Building up no claims discount
You can build up your cheap car insurance for young drivers with no claims bonus on most types of motor insurance policies, including third party, third party fire, and theft and fully comprehensive. You should, however, check the details if you buy temporary cover as it does not always apply.
A no-claims discount generally only accrues to the main driver, so if you are a named driver on someone else’s policy, you can’t build up your own bonus. Some insurers will recognize the claims history of additional drivers, but only reward no claims discount if and when they buy their own cheap auto insurance for young drivers with no claims bonus policy with the same insurer.
How long can I build up my No Claims Bonus for?
The longer you go without claiming on your insurance, the better the discount you can get – usually up to at least 5 years. As long as your proof of no claims is less than 2 years old you can normally transfer your no-claims record to a new insurer if you want to change.
What happens if I have to make a claim?
If you do have to make a claim, your No Claims Discount will usually be affected if your insurer has to make a payment and can’t recover their outlay from a third party, like another driver’s insurer.
That’s why if you’re involved in an accident, it’s really important to establish whether it’s your fault and if someone else is to blame, to make sure you get all of the details you can.
If you make a claim under your policy, your No Claims Discount will normally be put back by 2 years – so if you had 4 years’ discount it would go back to 2 years.
Can I protect my No Claims Discount?
Once you have earned 4 years’ or more No Claims Discount you can normally pay an extra premium to protect it, which means that it wouldn’t go back if you made a single claim in a year and no more than 2 claims in a 3 year period.
Can I build up a no claims discount as a named driver?
A few insurers will let you build up a No Claims Discount as a named driver but generally, it can only be used with that insurer, who may not always give you the best deal for cheap car insurance for young drivers with no claim bonus online. So it’s usually worth having your own policy rather than getting on your parents’ so you can start to build up your own insurance track record.
Never forget that if you crash as a named driver on someone else’s policy, you will affect their No Claims Discount. And that won’t make you very popular!
Cheap Car Insurance for Young Drivers No Claims Bonus
Cheap Young Drivers Car Insurance with No Claims Bonus, whether you’re a young driver, were a named driver on someone else’s policy or have made claims in the past
Start building up a No Claims Bonus today – Get a Quote
Drivers that are lucky enough to have gone years without needing to make a claim on their car insurance, reap the rewards when it comes to their insurance premiums. But what can you do if you’ve lost your No Claims Bonus after making what your insurer considers to be an ‘at fault’ claim, or you’ve been an additional driver on someone else’s policy and unable to build up any No Claims Bonus in your own name?
It’s a question that affects many drivers.
Your premium can go up substantially if you’ve lost your No Claim Bonus, especially if you’re a young driver. This can seem especially unfair if the accident was due to factors such as weather – for example, if your car skidded on a wet road, even though you were driving within the speed limit. If the other driver was at fault but wasn’t insured, you can also lose your no-claims discount and the same applies if your car is damaged by vandals. Having a driving conviction only makes matters more complicated.
How Complete Cover Group Can Help with Insurance for Drivers with Zero No Claim Bonus
At Complete Cover Group, we work hard to ensure that you can get affordable insurance for zero No Claims Bonus years. We have years of expertise, a great panel of leading USA insurers and expert knowledge of specialist policies to help drivers like you.
It makes a great difference when you explain things to a skilled insurance broker who uses their in-depth knowledge of the market to put together insurance for your individual needs. And of course, once you have the insurance in place, you can start building up those no-claims years again.
Click for an online quote or speak to our team on +18443325936
Can there be a gap in a No Claims Bonus?
A gap in your no claims bonus (NCB) can occur for many reasons such as changing from being the main driver to a named driver (who don’t usually receive a NCB), taking a break from driving or living overseas.
It will vary between insurers, but a NCB will generally only last for two years. If your gap is longer than this, you may need to contact the company your NCB is with. They may still be willing to transfer it to a new policy. If not, you should shop around for an insurer who will accept it otherwise you will have to start again from scratch.
Can you transfer a No Claims Bonus from a company car?
Not every insurer will accept driving experience on a company car policy towards a private one. For insurers that do, they may require written evidence such as a letter from your employer confirming details of the vehicle. They may also only be willing if you had sole use of the car and whether it was insured for Social, Domestic and Pleasure (SDP).
Can you transfer a motorbike No Claims Bonus to a car?
If you are planning to trade your motorbike for something with more wheels, you may be wondering whether you can move you’re existing no claims bonus (NCB).
Many insurers acknowledge that your years of sensible experience driving a motorbike will transfer into the seat of a car. This is especially important for young drivers who may have started driving on the road but have decided to change for a more practical vehicle.
If you are in the unfortunate position of having to start your no claims discount again from nothing, Complete Cover Group can help you find an affordable quote even with zero no claims bonus.
Car insurance premiums – working out the cost
The amount you pay for your car insurance is called a premium. Insurance companies will take all sorts of information from you in order to work out what your monthly or yearly premium will be. This includes:
- personal details, such as age and postcode
- information about the car you will be driving
- level of cover you’re looking for
- miles you think you’ll be driving each year
- previous car insurance claims
- criminal convictions
- no claims bonus – the number of years you’ve been driving without having made a car insurance claim.
This information allows the insurance company that provides a quick quote to build up a picture of how ‘risky’ you are, and they will calculate your premium based upon this. The higher the company deems the risk is, the higher the premium will be.
Car insurance levels of cover
When it comes to cheap car insurance for young drivers with no claims bonus quote, one of the first things you will need to think about is what kind of cover you want. There are three levels of cover to choose from – third party, third party, fire and theft and fully comprehensive.
If you would struggle to replace your car if it was written off in an accident, it’s best to go for the highest level of cover – fully comprehensive. The third-party cover might be the best option if your car is only worth a few hundred pounds.
However, fully comprehensive cover often costs less than the third party, so it’s worth checking the price of both.
- Discover everything you need to know about choosing the right level of cover.
- Best way to insure young drivers
- Car insurance for young drivers is always going to be expensive, but there are some ways to reduce your premiums.
Your decision for a car is important. Every car is appointed an insurance bunch number from one to 50, with one being the cheapest to protect and 50 the most costly. Driving a car in a low insurance bunch is the simplest method to diminish your premiums.
Including a second, the okay driver can likewise bring down the costs of insurance. Guardians are a decent wagered, however, they can’t claim to be the primary driver – this is called ‘fronting’ and is illicit.
The fewer miles you drive, the lower your insurance costs. While applying for cheap car insurance for young drivers with no claims bonus you will be gotten some information about how frequently the vehicle will be utilized and what distances you hope to cover. Less miles and less incessant use can bring about lower premiums.