The No-claim discount/bonus
This is a reduction in your premium
in return for you not making a claim (also known as a no-claim bonus). Over a period of years in which the discount is earned
(usually four or five), it can lead to as much as a 75 per cent reduction in the cost of your insurance and will stay
with you if you change insurers.
You may lose all or part of
your discount if you make a claim and your insurer is unable to recover its outlay from someone else. Many insurers will allow
you to protect your no-claim discount for an additional fee or for a slight reduction in the discount scale.
This means that even if you make,
say, two claims in a three year period you'll be able to keep your no-claim discount. Again, this practice varies from company
to company. Note that it is the discount that is protected, your premium may still increase depending on your claims history.
