No claim bonus protection is a way to safeguard your no claims bonus for car insurance by paying extra to keep your rating following an at-fault claim against your insured vehicle.
This optional extra only protects your rating; your insurance premiums may still increase due to other factors. In some cases, the amount you pay for protection can be more than the savings you make from your no claims discount.
Always check the relevant Product Disclosure Statement (PDS) of your insurance policy to see whether no claim bonus protection is available to you.
Some insurers may allow you to carry over your existing no claims rating from your previous insurer to a new policy. In most instances, you must provide proof of your rating in order to transfer your rating; this can include a previous policy renewal.
How insurers apply this discount to a new policy may be different. For example:
Please check your PDS to see if this is applicable to your current policy.
Generally, your no claims bonus is not affected by a claim for windscreen or window glass damage only. You may be required to pay an excess for these claims, but your rating is likely to be unaffected.
No, your no claims discount or bonus is typically applied as a discount on your premium. A premium can be raised when a policy is renewed for a number of reasons, some of which may be out of your control and unrelated to your safe-driving rating or driving experience. Sometimes an increase to your no claims discount could offset the impact of a premium increase.
In most cases, your no claims bonus would be affected if your insured vehicle is stolen and you make a claim for this loss. Some insurers may set back your rating two years unless you have the no claims bonus protection.
If your rating isn’t affected (e.g. you have the bonus protection), your insurance premium may rise to reflect your new claims history.