One of the best ways of reducing the cost of your motor trade insurance is to gain and build up your no claims bonus or sometimes referred to as ‘no claims discount’.
When at the time you compare motor trade insurance, a good broker will be able to negotiate better rates with insurers and gain you better rates. The greater the level of NCB, the greater the discount. Once you gain 5 or more years, you will be considered as having ‘max ncb’
It is important to remember that the insurer you take out your new traders insurance policy with will want to see copies of your NCB confirmations, at the very least your latest one. Potentially your certificate will display 5+ when you have 5 years or more. We suggest as you work through your years, you keep the first one that says 5+ in order to be able to prove the date you gained them and add the additional years.
What if I am a first time motor trader with no bonus?
We all have to start somewhere and if you are a first time trader it is likely you will have 0 NCB. What is possible though in many cases is to mirror or transfer your private NCB from your personal car. This is not possible with all insurers but we do have access to insurers via brokers that can offer this.
What if I may need to claim?
Of course, there may come a time where you need to make a claim for what ever reason. It is important though that you take the time to assess whether it is worth claiming and losing your ‘no claims bonus’ or sucking up the financial hit. If you have gained more than 2 years NCB, a claim would have to be more that £1500 to make it worth claiming.
If you do need to make a claim, it’s not only the no claims bonus you will lose, you will also need to think about the excess you will have to pay.
By not claiming you are protecting your no claims bonus and giving yourself the chance to save substantially on your renewals.
Should you be involved in an accident that you have caused and peoples property has been damaged, it is still important that you report it to your insurance company or police within 24 hours regardless of whether you wish to claim or not. Simply tell your insurance company that you would like to report an accident but not to claim.
Can I Protect my No Claims Bonus?
Yes, you can protect your NCB. Protecting your NCB means you will have to pay an additional fee but should you need to make a claim, you will not lose all you discount. This is where the ‘step back scale’ comes into play. The scale and rules differ insurer to insurer so it is important you check how much you lose in the event of a claim.