FAQs: motor trade no claims bonus
- How much discount does no claims bonus entitle me to?
- Will motor trade insurers allow me to mirror my private car bonus?
- What is the maximum number of years motor trade no claims bonus that insurers will allow?
- Can I obtain a discount with a company letter from my previous employers confirming claims free driving?
- Will I lose all my motor trade no claims bonus if I make a claim?
- Does no claims bonus still apply on a motor trade combined policy?
- Can I still protect my no claims bonus as I do with a private car insurance policy?
- Can I add my wife/partner onto the policy?
Discounts applied to your policy due to no claims bonus vary from insurer to insurer depending on the number of full years you have been driving claims free, and whether your bonus has been accrued whilst driving on a motor trade policy or a private car, commercial vehicle or fleet policy.
Generally the discounts allowed by most motor trade insurers for no claims bonus from a motor trade policy work along the following lines
- 20% – 1 year no claims
- 25% – 2 years no claims
- 30% – 3 years no claims
- 40% – 4 years no claims
- 50% – 5 years no claims
Yes all motor trade insurers will allow full motor trade no claims discount even when the bonus remains on a policy elsewhere.
The maximum varies from insurer to insurer but most motor trade insurers allow 5 years and some will allow up to a maximum of 4 years.
Can I obtain a discount with a company letter from my previous employers confirming claims free driving?
A company letter can obtain an introductory discount on a motor trade policy as long as your previous employers confirm on their letter headed paper that you have been on their policy and the dates in between which you were driving, their insurers name and their policy number.
Dependent on the circumstances, size of the claim and which insurer you are with unprotected no claims bonus will be stepped back from 5 years to 2 or 3 years. Some Motor Trade insurers will reduce the no claims bonus to zero after one claim and nearly every insurer will remove all no claims bonus discounts if 2 fault claims are made within 3 years.
Yes the no claims bonus is still applied to the road risk section of the policy. All other sections are rated based on the full amount of the sums insured.
Your no claims bonus can be protected on a motor trade policy as on private policies but if a claim occurs the next motor trade insurer may not recognise the protection facility and will step back your no claims bonus entitlement. To get the full benefit of protected no claims bonus remaining with the same motor trade insurer is key.
Most motor trade insurers will allow you to add a spouse or partner to the motor trade policy and with some insurers you may also be able to exclude them to drive for motor trade use. Excluding business use cover will probably decrease the premium.
Be aware though that if they have no claims bonus in their own name it will be invalid with most insurers 2 years from the date of expiry of their last policy.
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