Having a no claims discount on your motor trade policy, otherwise known as your no claims bonus (NCB), can be very handy to have when it comes to reducing your premium amount.
In this article, we’ll discuss what your no claims discount really means, why it’s useful to you, and how to prove you have one before starting your policy.
WHAT IS A NO CLAIMS DISCOUNT?
A no claims discount is a bonus that you’ll receive for each year you don’t make any claims on your motor trade insurance.
The discount is taken off your premium at the start of your policy, and grows with each year you have no claims. This usually goes up to a maximum of 5 years, at which point most no claims bonuses top out.
WHAT KIND OF NO CLAIMS DISCOUNT IS ACCEPTED FOR MOTOR TRADE INSURANCE?
Usually, your no claims discount will apply whether you have a trade policy or a private car policy in place.
WHY IS IT USEFUL?
When it comes to your premium, any discount can make a big difference. On top of this, some insurers will let you transfer your no claims discount from your previous policy if you switch, so you won’t miss out on saving money.
However, if you switch insurers before your policy term is up, you could miss out on getting your no claims bonus for that year. Because of this, it might be a good idea to plan your switch in advance, so you can keep your full bonus when your new policy date rolls around.
HOW TO PROVE YOU HAVE A NO CLAIMS DISCOUNT
If you want to switch your insurer or broker, you’ll need to provide proof of your motor trade no claims bonus so that it can be carried over to your new policy.
Your discount may be listed in the letter your insurer sends to you before your insurance is due for renewal, or it could be in the cancellation letter that you’ll receive once you end your policy. You can pass this on to your new motor trade insurer or broker and they can apply it to your new policy.
In some cases, you might have to chase up your proof of no claims bonus with your previous insurer, by contacting them directly and asking them to send it to you.
With Tradesure, we can transfer your no claims discount from your previous policy. This includes private motor policies, motor trade policies and commercial vehicle policies, with a maximum no claims discount of up to 50% off your premium if you have five years of no claims. In the event of one fault claim, only two years of your bonus will be lost.
For more information, please call a member of the Tradesure team on 0121 248 9300.