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Understanding No Claims Bonus
A no claims bonus is a discount give to you from your Insurance Company when you do not make any claims on your policy in a given year of insurance. For every year your do not make a claim on your policy, you will get an additional years’ bonus. This continues for up to 5 years after which time it is called a full bonus. A typical no claims bonus scale looks like the following:
|Period of Insurance
The discount percentage comes off your gross premium – before any other loadings or discounts are applied.
Most Insurance Companies agree that fire and theft claims and windscreen damage and replacement claims should not affect your no claims bonus. But not all – for instance Footprint Insurance will step back your bonus in the event of a fire or theft claim.
You can pay a relatively small additional premium to protect your no claims bonus. There are two types of no claims bonus protection:
- Step-back protection - where your no claims bonus is typically stepped back 2 years in the event of a claim. Some insurance companies may offer variations on this.
- Full bonus protection – when your bonus remains unaffected in the event of a claim. Some conditions do apply to this depending on the insurance company.
Your “Proof of No Claims Bonus” is an important document which will always be sent to you 4 weeks before your renewal date with your renewal terms for the coming year. If you are a client of QuoteMe.ie, your bonus will be printed on blue paper. Keep this document safe as you will need it whether you are renewing your van insurance or whether you are transferring to another insurer.