As with domestic insurance policies, you have the ability to earn a no claims bonus if you don’t make a claim under your motor trade insurance policy.
By building up your no claims bonus you will be entitled to discount of your insurance policy premium. The longer you go without making a claim, the bigger the discount entitlement; again this is the same as domestic insurance policies.
It is also possible on motor trade insurance policies to protect your no claims bonus.
The no claims discounts received on a motor trade insurance policy are usually calculated as follows:
- 1 year no claims – 20%
- 2 years no claims – 25%
- 3 years no claims – 30%
- 4 years no claims – 40%
- 5 years no claims – 50%
As you can see, the discount does become quite big and it would be a shame to lose it if you decided to switch insurance providers. The maximum no claims discount on your motor trade insurance policy can save you quite a bit of money.
Many insurance providers have set the maximum no claims discount at 5 years or 50%, anything after that and the discount will remain the same.
It is worth noting that if you take out a combined motor trade insurance policy, your no claims discount won’t apply to the whole of the policy, you will only receive discount on the road risks element of the policy.
A question that is commonly asked is, can no claims bonuses be transferred between policies?
Many people get confused with the rules when it comes to changing motor trade insurance providers and your no claims bonus.
When you change your private vehicle insurance provider, you can transfer your no claims bonus to your new policy and receive the appropriate discount.
It is understandable why people want to know the answer to this question. Depending on any claims you have made, it can take time to build up no claims discount. It would be a shame to lose it because you decided to switch insurance provider.
There is good news here because motor trade insurance providers, like domestic insurers, do allow the transfer of your no claims discount to another insurance policy.
To transfer your discount you will have to speak to your current motor trade insurance provider and get a letter of confirmation. This will show the level of no claims you have built up and should be enough proof for your new insurer.
They will then add the appropriate level of no claims discount to your new insurance policy.
Something else to consider and speak to your motor trade insurance provider about, is the potential to mirror any no claims discount from your domestic insurance on your motor trade insurance policy.
This effectively allows you to apply your no claims discount to two polices and can be useful if you are applying for motor trade insurance for the first time and have a good level of no claims discount on your private insurance.
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