There are many insurance companies who will offer a protected no-claims bonus for their insured drivers. This is usually offered to individuals who have demonstrated that they do not often make claims, by already having a number of years without making a claim on their policy, usually 4 years or more. Thus by paying an extra premium, they may be able to make a number of claims without forfeiting their bonus.
If you choose to protect your no-claims bonus, you need to make sure that you read your policy carefully, as most policies will have detailed terms, conditions, exclusions and excesses for their protected no-claims bonus premium.
When considering if you should pay the extra premium to protect your no-claims bonus, it is worth balancing the costs associated. You will be required to pay an additional premium for the protection, which can add up, especially if you don’t make a claim. However, it’s also worth remembering that if you do make a claim, you will not be able to transfer your protected no-claims bonus to another insurer, so is it possible that your insurer will increase your premium at your next renewal.
