Protecting Your No Claims Bonus – Should You Make a Claim?

New research has shown that around 38% of people never claim on their car insurance to avoid losing their no claims bonus. As no claims bonuses are seen by car insurers as proof of a good driving record, motorists are keen to ensure that they protect their no claims discount, even if this means paying for damage to their vehicle themselves.

It is fairly common knowledge that making a claim on your motor insurance will result in higher insurance premiums. Just how much of a difference a claim can make to your insurance premium though is quite staggering. A full no claims bonus can mean more than a 50 % discount on a car insurance policy. It is understandable then that people are reluctant to make a claim.

When deciding whether or not to make a claim there are a few points to consider. The first point to think about is the cost to repair the damage. If the damage is minimal then it is more than likely that it makes more financial sense to fix the damage yourself without involving your car insurance provider. Car insurance excesses can vary but in many cases the cost to repair a problem is less than the voluntary excess. It is also worth considering the affect the claim would have on your insurance costs. If you think that the cost of the excess and increase in premiums combined will be more than it would cost to fix the damage then it makes more sense to sort the problem yourself.

In some cases however claiming with your insurance company is unavoidable. In these cases it is likely that your insurance renewal prices will be increased from the previous year. If this is the case, there isn’t a great deal you can do about it. Shop around for your car insurance taking into account what excess can be afforded and what benefits are required. If a no claims bonus has been built up then protect this bonus through your insurance.

Before purchasing your motor insurance be sure to compare car insurance policies from a range of insurers. By completing a car insurance comparison, it is likely that you will find the cheapest car insurance available to you.