Important Questions for your UK Car Insurance Company (Part Two)

Schedules for No Claims Discounts

No claims discounts have a significant impact on any car insurance rates you are likely to pay, and an accumulation of accident-free driving means your car insurance premium could be halved. This can present an issue when you compare two different car insurance quotes.  You will need to account for your discount for each extra year, and find out the point where discounts bottoms out to prevent you earning further reductions. Ask what happens to your bonuses if you make a claim; some car insurance companies will protect your bonus if you only make a one-off claim and survive another year without having another accident. This allows you to maintain all of your discounts instead of having to start from scratch.

Maximum No Claims Discount Transfers

Most car insurance companies allow you to carry over your no claims bonuses from other carriers and allow you to keep the existing discounts as an incentive to make you switch policies. However, some car insurance companies impose a set limit on the amount of no claims discount years you can qualify for. In some cases, this can be as little as five years. This type of policy could leave you worse off, especially if you transferred more than five years of discounts from one car insurance company to a company that imposes a transfer cap. Effectively, you could lose several years of no claims discount that would have saved you money had stayed with your existing carrier.

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