No Claims Discounts are a car insurers reward for careful drivers who do not make a claim on their car insurance. Most car insurance providers will offer a reduction in insurance premium to drivers with a history of making no claims. By driving safely you, therefore, have the added bonus of getting cheaper car insurance too.

A No Claims Discount is usually applied to your car insurance premium for every year that you have insurance on a car, but don\’t make a claim. There may be a limit to the number of years you can earn a discount for, up to a maximum premium discount of 75% with some car insurance providers such as John Lewis. This usually translates as around five years of driving without making a claim.

If you have this precious No Claims Discount on your car insurance, you will understandably want to protect such a helpful financial saving. Many car insurance providers will allow you to protect your No Claims Discount by paying a little extra on your premium. This means that even if you are unfortunate enough to have to make a claim, you can still enjoy the discount that you’ve built up in previous years.

Each car insurance provider will have different rules as to the length of time and how many claims you can make whilst still protecting your No Claims Discount. Reputable car insurance providers may protect your No Claims Discount for two claims in the space of three years, for example. You should also be aware that it is a No Claims Discount not a “No Fault” discount and is reflective of incidents where your insurers have had to pay out for damages, rather than just an incident where it is deemed your fault. Also, your No Claims Discount will still be temporarily affected whilst your claim is pending if it is a non-fault claim. You should therefore always check with your provider to find out what rules and regulations apply to your No Claims Discount.

Having a history of no claims will stand you in good stead with future insurance policies you take out too. Although you cannot usually transfer a discount to a second car with the same insurance company, some insurance companies will still give you an introductory discount on cover for a second car if you’re already insured with them and you have a No Claims Discount. They may even allow you to transfer a No Claims Discount which you have built up on a company car onto a personal car insurance policy.

So what happens if you do make a claim? Usually your discount will be ‘stepped back’ to a lower level, which means you shouldn’t loose your No Claims Discount completely for a single accident. A four-year No Claims Discount, for example, might be reduced to two years initially, however a further claim would likely mean that you lose your discount altogether if it wasn’t protected.

About John Lewis Insurance:

Since Greenbee launched four years ago, we’ve provided insurance with the same high standards of service and value for money that you’d expect from John Lewis, so we’ve decided to change our name to John Lewis Insurance. As we evolve, we’ll continue to offer our customers exceptional products and service.

We believe that everything we do should be straightforward, great value and come with an extra level of service that’s always reassuring. Which is why our Home Insurance includes accidental damage as standard. And faithful friends will be pleased to know that our Pet Insurance includes older dogs.

We all know that it makes a lot of sense to buy the important things from someone you trust. In fact, you’ll find that all the products and services offered from John Lewis Insurance are exactly what you would expect from the John Lewis Partnership.

John Lewis Insurance offers a range of insurance services selected by the John Lewis Partnership. These include home, life, travel, wedding, event, pet and car insurance (http://www.johnlewis-insurance.com/homepage/car-insurance.html) policies.

John Lewis Insurance offers a range of insurance services selected by the John Lewis Partnership. These include home, life, travel, wedding, event, pet and car insurance (http://www.johnlewis-insurance.com/homepage/car-insurance.html) policies.

Author Bio: John Lewis Insurance offers a range of insurance services selected by the John Lewis Partnership. These include home, life, travel, wedding, event, pet and car insurance (http://www.johnlewis-insurance.com/homepage/car-insurance.html) policies.

Category: Automotive
Keywords: car cover, online car insurance, car insurance online, online car insurance quotes