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FAQ - No Claim Bonuses



A “No Claim Bonus” is just that, it rewards individuals for not making claims against their insurance policies for a stipulated period of time. Different insurers provides different types of no claim bonuses, with some offering your first years premiums or 25% back in cash after about 4 years, while others offer a percentage of premiums paid after 3 years and further percentages every two or yearly thereafter. There are also some insurers which offer reward programs which reward individuals for simply being a better risk than originally anticipated by the insurer. It is always best to check with your insurance company or broker on what the most up-to-date details are regarding the no-claim bonuses and requirements on your policy.

If an individual had to make a claim during a period, dependent on the insurer, your no claim bonus may be forfeited and you have to start from day 1, all over again. Some insurers do allow certain claims to be made while not affecting your no-claim bonus. Either way, it is best to ensure you do not make a claim unless you simply have no other choice and furthermore it is advisable that this is only done when the sum to be claimed is above your excess amount and your bonus amount. It is common for most individuals to even cover or repair minor damage or loss themselves in order to protect their no-claim bonuses. Furthermore, it is important to remember that making a claim may have an effect on you as a risk and therefore on current or future insurance premiums.

If you do have to make a claim, such as in a motor vehicle accident, and it is not your fault, most insurers may allow you to retain your risk status and therefore both your premiums as well as your no claim bonus as long as they can recover the costs from the responsible party. An even better idea, if you and the responsible party are both insured by the same insurer, may be to request your insurance company to make the claim against the responsible parties’ insurance policy, leaving your policy and no claim bonus fully intact.



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