No claim bonus simplified!


It sounds pretty self-explanatory, but what exactly is a no-claims bonus?

Basically, it is a tally of the number of years in which you have not issued a claim on your car insurance policy. In time, this can significantly decrease the premium that you pay. The way to build onto it is to not make any claims in a year, and you will earn another year’s No Claim Bonus (NCB).

How will my NCB be affected if I lodge a claim?

Lodging a claim that is eventually approved and paid out will cause you to lose some or all of your No Claim Bonus. There are a few exceptions to this, of course. Supposing you get into an accident and the other party claims responsibility, your insurance can reclaim a pay-out from that person’s insurance company; your NCB may not be affected.

So assuming I do not lodge any claims, my premium will decrease?

We usually use your claims history to calculate premiums, with your NCB discount calculated at the end. Any NCB you have may lower your premium, but there’s no guarantee that it’ll be lower than the previous year.

Did you know that your NCB can result in up to a 50% discount on your annual premium?

As an accident-free client, your discount on your private motor insurance can be as high as 50% off of your annual premium calculation. If you are eligible for other discounts, this will lower your premium even further. If your annual premium was calculated at SCR15,000 on a private full motor comprehensive insurance policy – with a discount of 50% you will pay only SCR7,500. That amount can go even lower depending on other discounts you are eligible to receive.

To find out more information on discount benefits available, call our office or contact your broker today!

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