What does claims Bonus Protection

Just a Plinker

What does no claims bonus do /mean, Does it actually stop your premium rising or being loaded as the result of an accident caused by yourself, Or does in mean that instead of waiting 3 years to switch to another company you can do it the next year

Rgds

JAP

Liberty Insurance: Una

Hi JAP,

A no-claims bonus is earned from the beginning of the policy to the renewal date. If no claim arises during the period of insurance, at the renewal date we will reduce the renewal premium in line with our no-claims bonus scale.
You can protect your no claims discount if you have earned 4 or more years. This is an optional extra for an additional cost.
Your no claims discount is not affected by any breakdown assistance claims or windscreen claims if you have windscreen cover.
For all other claims: If you have opted for no claims discount protection when you started the policy, then you will not lose any of the discount if you make one claim in the insurance year. If you make a second claim in the same period of insurance, your no claims discount will step back as follows:
1 year reduces to zero, 2 years reduces to zero, 3 years reduces to zero, 4 years reduces to 1 year 5 or more years reduces to 2 years
If you haven’t protected your no claims discount, it will step back as above.
The percentage discount for each year’s no claims will vary on each policy, dependent on the other risk factors on each individual policy.
A no claims bonus does not prevent your premium from increasing if you have a fault claim on your policy.
Thanks for your query,
Una

Just a Plinker

Liberty Insurance: Una wrote: »

Hi JAP,

A no-claims bonus is earned from the beginning of the policy to the renewal date. If no claim arises during the period of insurance, at the renewal date we will reduce the renewal premium in line with our no-claims bonus scale.
You can protect your no claims discount if you have earned 4 or more years. This is an optional extra for an additional cost.
Your no claims discount is not affected by any breakdown assistance claims or windscreen claims if you have windscreen cover.
For all other claims: If you have opted for no claims discount protection when you started the policy, then you will not lose any of the discount if you make one claim in the insurance year. If you make a second claim in the same period of insurance, your no claims discount will step back as follows:
1 year reduces to zero, 2 years reduces to zero, 3 years reduces to zero, 4 years reduces to 1 year 5 or more years reduces to 2 years
If you haven’t protected your no claims discount, it will step back as above.
The percentage discount for each year’s no claims will vary on each policy, dependent on the other risk factors on each individual policy.
A no claims bonus does not prevent your premium from increasing if you have a fault claim on your policy.
Thanks for your query,
Una

Thanks for the reply mate so it is not as stated a (No Claims Bonus Protection), It is a No Claims bonus Discount, So the bonus you earn without a claim in say 6 years still exists , But you are really 0 years claim free and you policy can be loaded accordingly, It does not state discount on your website just bonus protection, But thanks for the explaination

Liberty Insurance: Una

Hi JAP

A No Claims Bonus relates to the discount you avail off the premium you pay. The No Claims Bonus Protection is an optional benefit provided to you once you have 4 or more years No Claim Bonus.Our website provides details of the benefits to our policies, Protected No Claims Bonus would be a benefit. A No Claims Bonus is something you automatically earn if no claim arises.

You can access our policy booklet online from this link ttp://www.libertyinsurance.ie/documents/policydocs/motor_policy_roi.pdf on page 4 and 5 we provide more details on No Claims Bonus and Protected No Claims Bonus.
 
Thanks again Una

Avien

Just a Plinker wrote: »

Thanks for the reply mate so it is not as stated a (No Claims Bonus Protection), It is a No Claims bonus Discount, So the bonus you earn without a claim in say 6 years still exists , But you are really 0 years claim free and you policy can be loaded accordingly, It does not state discount on your website just bonus protection, But thanks for the explaination

The protection itself is not a discount, it protects your discount. Basically you always earn NCB, but if you have a claim you lose part of your NCB (in this case 3 years for every claim). If you protect the NCB, then you can have up to 1 claim without the NCB being impacted.

So for example:
If you have 5 years NCB which is not protected and a claim is made within the policy year, your NCB at renewal will be 2 years
But if you have 5 years NCB protected and a claim is made, then the NCB at renewal will still be 5 years.

Your premium on the other hand will always be impacted, or "loaded" as a result of a claim for the amount that the insurer has reserved or paid out against the claim. The NCB is a discount off the premium as a whole. What you are paying for is the retention of your higher discount.