Is it better to protect your no claims?
Asked by: Dr. Kassandra Prohaska Jr. | Last update: June 6, 2025Score: 4.5/5 (25 votes)
Is it worth protecting my no-claims?
Once you have several years of NCD you might want to consider paying for no-claims protection. This is because if you make a claim, you could lose anything you've built up already. Whether NCB protection is worth the extra cost depends on your budget, how much your insurance is, and how big your discount is.
At what point is it worth claiming on insurance?
You should consider filing a car insurance claim whenever your out-of-pocket costs would extend past your deductible. Reminder: your deductible is the amount you'll pay out of pocket when you file certain claim types, like comprehensive or collision.
Do I lose my no-claims bonus if someone hits me?
Your NCB will not be affected by this accident. The only reason that anyone may lose their NCB is for a claim from their own insurance - either for their own or a third party's damage.
How much does car insurance go down after 1 year no claims?
In many cases, your insurance will go down by 5-20% in the first year of no claim, depending on your insurer. After the first year, this discount increases each year, usually by 5%, if you don't make a claim. But it only increases up to a maximum discount, usually 50-60%, and a number of years — usually 5-6 years.
Do This to PROTECT Your No Claims Bonus!
How many years before I can protect my no claims bonus?
You may lose your no-claims bonus if you make a claim, or if you have a significant gap between policies – for example, if you take an extended break from driving. The threshold varies across providers, but your no-claims bonus will typically expire after around two years of being uninsured.
Does someone crashing into you affect no claims?
In most cases, a non-fault accident should not affect your no-claims bonus. Your insurance company will typically still honour your no-claims discount as long as you can prove that the accident was not your fault, though insurance companies and policy terms vary.
Do insurers check no claims bonus?
When you renew your insurance and you want to move to a new motor insurance provider, the NCD database enables the new insurer to verify your no claims discount directly from the database. Details provided by the database include the number of discount years and whether these are protected, guaranteed or standard.
Do I pay excess if I am not at fault?
You pay the excess in the event of any claim made on your insurance policy regardless of who is to blame. However, if it's proved the accident was the other person's fault and the full cost is recovered from their insurer, you may be able to recover this amount.
Should I file a claim if I'm not at fault?
Always File a Claim, Regardless of Who Was At-Fault
One of the primary questions we receive from clients who have been in an accident is whether they should report the accident to their own auto insurance carrier, particularly when the accident was not their fault. And the answer to that question is: always.
At what point is car insurance not worth it?
If your vehicle is paid off, there are only a few instances that justify dropping collision coverage: Your vehicle's value is less than a few thousand dollars: If your car holds minimal value, collision coverage may not be worth carrying. This is especially true when a large car insurance deductible is involved.
Should I pay for a car accident out of pocket or let insurance pay?
If the repair costs are less than your deductible (or even slightly more) you should pay for the repairs out of pocket. For example, if the damage to your car costs $300 to fix, and your deductible is $200, you would save $100 by filing a claim.
Why can't I protect my no claims?
Some insurance providers won't allow you to protect your NCD if you've earned less than four years' discount. But if you have the right number of years, you can protect it by paying a fee on top of the cost of your car insurance.
Is it better to not file an insurance claim?
Always file a claim if there's serious property damage or potential injuries. Even if the other driver is honest and the accident was only a fender bender, the damage might be more serious than it appears. Additionally, a car might have hidden damage that won't be found until it's been looked at by a mechanic.
Is personal accident cover worth it?
Personal accident cover isn't something you need by law and you're under no obligation to buy it as an add-on. Nevertheless, knowing that you have a policy can give you and your loved ones peace of mind, knowing there's some financial help if you're involved in a serious accident.
Will my insurance go up if I have protected no claims?
No-claims bonus protection is an optional add-on to your car insurance policy. With this protection, you can make claims without affecting your no-claims bonus. Having no-claims bonus protection doesn't guarantee your car insurance premium won't increase after a claim.
Do I lose no claims if it wasn't my fault?
When you make a non-fault claim, your no-claims bonus could be affected while your insurance provider investigates who's at fault. However, if they confirm that you're not liable and they're able to fully recover their losses from the other provider, your full no-claims bonus should be reinstated.
What is the full no claims discount protection?
Full No Claims Discount protection is available for an additional charge if you have a No Claims Discount earned in your own name. This means that you can have up to two claims in a three year period and your No Claims Discount will be unaffected. If a third claim occurs then Stepback Protection will come into effect.
Will my insurance increase after a claim?
How much does car insurance increase after a claim? Although the amount will depend on who's to blame, the severity of the accident, and your own driving record, you should expect your car insurance to increase by about 20-50% after making a claim.
Is 9 years the maximum no claims bonus?
However, there's a time limit on the maximum number of years you can build up your no-claims. This can vary among providers, but most will cap the maximum no-claims bonus at around nine years. Once you reach this, you won't get a bigger discount on the following no-claims years.
What happens if you don't tell your insurance about an accident?
There is no California law per se about notifying your insurance company after a collision, but your auto insurance policy is a contract. When you signed it, you agreed to the stipulations in the contract, which will almost certainly include the requirement to notify the insurance company promptly after an accident.
Is it worth protecting 1 year no claims?
By protecting your no claims discount, you'll be locking in that discount. You'll continue to pay less on your premium even if you have an accident. You might still lose your discount if you have a number of accidents in one year though. The trade-off is that you'll have to pay an additional fee for the protection.
How much does no claims protection cost?
It is possible to protect your no-claims discount but it comes at an additional cost, typically between 10-30% of your car insurance policy premium. A quick and easy way to buy and compare car insurance is via a comparison site as you can compare multiple providers at once.
Do I keep my no claims as a named driver?
No claims bonuses only apply to the "main driver". That means if you're married (or living with someone) and you share a car, you can't share your no claims bonus. Only one of you can be the main driver. They're usually the owner of the car, or its 'registered keeper', but not always.