Q&A

What is a No Claim Bonus and How do I get the most out of it?

Most insurers offer a No Claim Bonus as part of your car insurance – a lump sum of cash that is paid back to you after remaining claim-free for a certain period.

In this article, compiled with the help of Old Mutual iWYZE, we’ll help you to understand how a No Claim Bonus works and how to get the most from it.

What is a No Claim Bonus?

A No Claim Bonus is usually a certain percentage of your premiums paid back to you in cash after a set period. This is an incentive to act responsibly and thus remain claim-free during that time.

How do you qualify for a No Claim Bonus?

With most insurers, a No Claim Bonus is an optional feature that you have to opt-in for and pay a small monthly fee to partake in. By looking for car insurance quotes online, you’ll be able to find out what kind of No Claim Bonuses each different insurers offer.

Most insurers offer exceptions to help you keep your No Claim Bonus intact. For example, with Old Mutual iWYZE, you will not lose your No Claim Bonus if you need claim for windscreen repairs (not replacement) or using the home and road emergency value added bonus.

You then simply have to ensure that your premiums are paid up every month and remain claim-free for the designated period.

Make sure to check the fine print on your insurance policy document, as each insurer might have different criteria.

Should you protect your No Claim Bonus at all costs?

The short answer is no. While a No Claim Bonus can certainly provide you with a nice chunk of change, you need to weight up your options carefully when it comes to deciding whether or not to claim.

Many people choose to pay out of pocket for minor incidents and accidents in order to keep their No Claim Bonus intact.

It is important to keep in mind though that when claiming from your insurance, you will be able to repair your vehicle at approved service providers who use original parts. There is a danger in paying for ‘cheaper’ repairs out of pocket and then settling for sub-standard parts and workmanship.

While the information in this article will give you more insight into No Claim Bonuses in general, it’s important to keep in mind that each insurer might do things slightly differently. Always read the fine print and make sure you understand the terms and conditions of your No Claim Bonus.

If you’re looking for affordable and reliable car insurance that offers a great Cash Back Bonus, look no further than Old Mutual iWYZE Insurance, who offers 10% of your premiums back in cash every 36 months. Make the wise insurance choice and get a car insurance quote today.

iWYZE is underwritten by Old Mutual Insure Ltd (FSP12), an authorised FSP. Risk profile dependent.

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