No claims bonus explained
What is no claims bonus/no claims discount?
If a car gets stolen, why is NCB lost?
What happens if a driver has an accident and needs to reinsure their car before a judgement has been made on who was at fault?
What can people do to prevent loss of NCB?
So, does a protected NCB prevent the insurance premium from rising?
So how come, if a claim has been made and the NCB is protected, the premium still rises?
So, is protection worth it?
How a NCB affects insurance premiums
Extra savings could be made on car insurance
Car insurance policy types
But although cover is mandatory, you do have a choice in the kind of policy you buy. Here are details of the three types of cover available: third-party, third party, fire and theft, and comprehensive.
Third-party only policies
And if you’re involved in an accident where the fault can not be attributed, you will also be unable to claim. If your vehicle is not worth much, you could be tempted to opt for third-party cover – but bear in mind this would leave you without insurance against injuries you yourself sustain.
Third-party, fire and theft
Comprehensive car insurance
You are also covered for fire and theft. You might expect comprehensive policies to be the most expensive type of cover, but this is not necessarily the case.
Some insurers have reported that higher-risk drivers – such as the under-25s – are more likely to choose third-party policies. As a result, the risk associated with this type of cover – and therefore its price – has been rising in relation to comprehensive cover.
Saving money on cover
- Reduce the excess you pay. You can cut your premiums by opting for a larger voluntary excess – so if you agree to pay the first £250 of any claim rather than just the first £100, your policy will cost less.
- Beef up your security. If your car is fitted with an alarm or immobiliser, it should be harder to steal. This should lead to a lower cost of cover.
- Add a named driver. If you are relatively inexperienced on the roads, this is probably making your insurance more expensive. By adding a more experienced named driver, such as a parent, to the policy, you could see premiums fall.
- Shop around. As you’re on Confused.com already, you probably don’t need reminding. But if you’re buying insurance for the first time, or your policy is up for renewal, comparing the best prices from the widest range of providers is the easiest way to cut your premiums.