If you’re taking out a motor trade insurance policy, you’ll want to know how it affects your no claims bonus. A no claims bonus is a reward for not making a claim and gives the customer cheaper premiums for each year they go claim-free. If you have an accident and need to make a claim, you’ll lose your no claims bonus and your premiums will go up because you’re considered a higher risk.
However, some motor trade insurers will allow you to protect your no claims bonus. You have to pay slightly more for a service like this, but it means you can make a claim without losing your no claims bonus and inflating your premiums. There are also certain things you must be aware of when investigating how a new insurer will treat your no claims bonus.
Transferring to a new insurer
Changing insurers can be a bit of a grey area when it comes to your no claims bonus. Some insurers will respect the no claims bonus you have built up and allow you to transfer it to your new policy; others may be less willing to let you do so.
For example, you may not be able to transfer your no claims bonus if you paid extra to protect it with your previous insurer – meaning your bonus would remain intact even if you made a claim. In this case don’t just assume your new insurer will let you carry your no claims bonus over to your new policy – discuss this with them in advance of signing the policy agreement to make sure.
Choosing which employees to insure
When you’re registering drivers on your insurance policy, think carefully about which ones you choose as whoever drives your vehicles could affect your no claims bonus. The number of claims you make determines your premiums so make sure you only register safe, reliable drivers who are unlikely to make a claim. Choosing drivers over the age of 25 with clean driving licences, no drink driving offences and no claims against them is also a good way to lower your premiums.
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Protecting your no claims bonus is important whatever type of motor trade business you run as insurance makes up a huge part of your running costs. Since not claiming drastically reduces your rates, you can save a lot of money in the long run by keeping your no claims bonus intact.
To find out how Unicom Insurance can help reduce your premiums and protect your no claims bonus, give us a call on 020 8805 7799.