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When it comes to letting slip a massive lead Lewis Hamilton knows the feeling all too well. He was 17 points ahead in the Formula 1 Drivers Championship last year with two races to go, but managed to hand the title to Kimi Raikonnen after some fairly reckless moves.
Slumped in the pits, pointless, after the Japanese Grand Prix this year, Lewis must have had a hideous sense of déjà vu. But the young Brit is back on track after a top performance in China, although it’s still his to lose at the final showdown in Brazil.
The anguish might not be quite on the same level of throwing a World Championship, but many a motorist has experienced the frustration of letting a hard earned reward slip through their fingers when they lose their car insurance no claims bonus.
Unlike Lewis, though, motorists can protect their ‘lead’, and keep their premiums in check. MoneyExpert.com gives a run down.
What’s in a car insurance no claims bonus Car insurance premiums have risen significantly in recent years, and for many now constitute a real financial burden. Any way of lightening the load, then, is to be welcomed, and a no claims bonus tops the list.
No claims bonuses vary from company to company but can entitle drivers to up to 75% off their car insurance premiums. They work by offering an increased discount for every year you drive without making a claim – the longer you drive claim-free the bigger the discount. There is a limit though; whilst some insurers will offer discounts for up to 8 years of no claims driving, the majority limit the period to 5 years.
Letting it slip Unfortunately a no-claims bonus is exactly that, and not a no-fault bonus, i.e. whether an accident is your fault or not, or even if your car is stolen, if you make a claim you’ll lose out. If you’re fortunate enough to have built up a 5 year bonus, however, your insurer may simply ‘step back’ your NCB to 2 years, meaning you’ll still be making a saving. Policies do vary, though, so it’s always worth checking out the details before signing up to a new policy.
Use protection Odd as it may sound, you are able to pay a fee to protect your no claims bonus meaning that should you have an accident your discount will remain intact. If you have more than one accident in quick succession, though, you’re unlikely to be able to protect the no claims bonus again immediately.
It’s also worth remembering that even if you do protect you discount your premium may still rise after an accident. The calculations made by the insurer to determine the amount you pay will have to factor in the claim you’ve made, meaning the cost will go up. The discount will still apply, though, and so if you have a long-term NCD getting protection may well be worth it.
In the fast lane When starting out a no claims discount built up over 5 years can seem a long way off. Some insurers, though, such as Admiral, offer ways to speed up the process with accelerated no claims bonus policies. These give you the chance to rack up a year’s NCB after only 10 months. Effectively you’d be able to reach your 5 year no claims bonus in just over 4 years.
If the end reward still seems too far off, MoneyExpert.com are offering £20 cash back to anyone purchasing car insurance through their extensive comparison service.
The best option Clearly, unless your car is stolen or you’re unfortunate enough to be hit by an uninsured driver, the best option is to avoid claiming at all by playing it safe on the roads. Protecting an NCB may be a worthwhile option, but is only really a tool for the worst case scenario.