What does protected no claims actually mean?

Frequently referred to as no-claims discount protection, protecting your NCB allows you to have a certain amount of ‘at fault’ accidents without affecting the bonus. This means that your no-claims bonus remains intact even if your insurer can’t claim their costs back.

Can you protect your no claims bonus after 3 years?

You can pay to guarantee or protect your NCB. ‘Guaranteed’ means a claim won’t reduce your bonus but you won’t get extra discount that insurance period. ‘Protected’ allows two claims in three years before the bonus is reduced, and, again, you won’t get any discount in that period.

How long does NCD last without insurance?

2 years
Your no-claims bonus (usually) lasts for 2 years If you haven’t had your own car insurance for a little while (maybe you sold your car, stopped driving or moved overseas), most car insurance companies will honour your old no-claims discount when you take out new cover.

Do you lose all your no claims bonus after an accident?

If your insurance provider considers the industry standard of five years to be the maximum NCD, you’ll be left with three years’ NCD. And if you make a second claim, you’ll lose it all. If no one was to blame for the accident, insurance providers may split the cost of the claims and both drivers’ NCD could be affected.

What is the difference between protected and unprotected no claims?

No claims discount protection typically means a policyholder can make a claim on their car insurance, if they need to, without losing their no claims discount altogether. With no claims discount protection, a driver is essentially paying an extra fee to protect the number of no claims discount they have built up.

Can you protect 1 year NCB?

Once you’ve built up a few years’ no claim bonus, you can “protect” it with an optional extra fee. This means your no claim bonus will be safe-guarded, even if you make an at-fault claim.

What if I get my no claims bonus wrong?

If the NO claim bonus is found to be more than that of the eligibility, you will receive a letter from the insurance company asking to pay the difference amount immediately to enable the insurance company to pass an endorsement. Now the policyholder has an option to either pay the difference amount or ignore the mail.