Quite simply, a no-claims bonus is a reward offered by car insurance companies for motorists who manage to complete a full year of accident-free vehicle use. Usually, a no-claims bonus has to run concurrently with the same car insurance company but in recent times, many providers will now allow you to transfer your accumulated discounts as long as evidence of accident-free driving can be provided.
For every year of safe driving that a motorist completes, an incremental discount will be applied to their car insurance policy. If, for example, a motorist has managed to remain accident-free for four years, then they will receive a four year no-claims bonus. This reduction continues to accumulate until the maximum discount level has been reached and this figure is usually in the region of 60% off of standard car insurance quotes using base rates for each individual company.
There are growing numbers of car insurance providers that give road users the opportunity to preserve any discounts that they may have accumulated through safe driving and this is called a protected no-claims clause. Although a protected no claims clause will add a little more to the cost of a policy, the no-claims bonus will still be protected if the policyholder is subsequently involved in an accident.
Although a substantial no-claims bonus can take several years to build, rewards begin to kick in after just twelve months so a responsible attitude to vehicle use is recommended at all times. By obtaining new car insurance quotes online, road users who already have the maximum level of qualified no-claims bonus can enjoy even greater savings.