Those who are looking for the budget car insurance can consider “no claims discount”, which significantly reduces the cost of you car insurance premiums.
The basics behind no-claims discounts:
Car insurance premiums are based on an assessment of risk which is why expensive for young drivers because of lack of proven record.
If you have never made a claim before or you have driven for few years without making a claim then a car insurance company can consider you as a safer driver and as such
will charge you less for cover. Also you are rewarded points for not making a claim through a no claims bonus which reduces your premiums.
Your discount is usually calculated as a percentage of your premium and can be built up year after year up to a certain limit - usually 65 - 70% depending on the insurance company.
The maximum number of years you can build a discount for will also vary, but will generally be set at five.
Tips to avoid making claims:
Sometimes you can afford paying for minor damages rather than making the claims and so are you marching towards “no claim discount”.
