Motor trade no claims bonuses work in the same way as they would in the private motor industry, drivers earn them. These can be a fantastic way to help bring the cost of your motor trade insurance premiums down, but can actually be more complicated when it comes to transferring them between different policies.
What Is A No Claims Bonus?
In case you’re not too familiar with this, a no claims bonus is a discount on your motor insurance policy premium which is based on the number of years for which you haven’t made a claim.
Motor Trade No Claims Bonus Discounts
If you go for any length of time, for example three years, without making a motor insurance claim then you will be able to receive a discount.
Once you’ve got up to five years of no claims, the no claims bonus discount will usually stay the same for the following years as long as you remain claim free. However, if you took out a combined motor trade policy the road risks section of the policy will only be eligible for the no claims discount.
Can Motor Trade No Claims Bonuses Be Transferred?
With the length of time that it takes to earn a no claims bonus, it can be frustrating if you want to change your motor trade insurer. However, as with the private motor industry, many motor trade insurers will consider allowing you to transfer your no claims bonus.
To do this, you will probably need to get in contact with your previous motor trade insurer and request some form of validation that confirms that no claims have been made in the past five years, for example, as this will be proof for your new insurance company that you have had no claims and that you may be eligible for any no claims discount they may have available.
No Claims Bonus Protection
Your no claims bonus can also be protected by some motor trade insurers; a protected bonus allows you to make a claim and not lose your bonus, although this may be subject to the number of claims you make. A protected bonus may not be factored into the equation if you transfer it to another policy with a different insurer.
As a specialist motor trade insurance broker, Road Runner Insurance can help you with your motor trade insurance. We’d love to hear from you, so please get in touch with us today.