The last thing you think about when you are sorting out proper motor trade insurance cover is what happens if you have to make a claim.
We all buy insurance hoping we never do have to make a claim against it, but if you do, understanding the process and the implications of making a claim should make it much easier and straightforward for you.
If there is an accident, or something else happens that makes you think that you might have to make a claim against your policy, the very first thing you should give some thought to is whether you actually want – or need – to make a claim at all. But you must remember in the event of an incident you HAVE to report it to your insurer and advise how you would like to proceed.
Making a claim against an insurance policy does have financial consequences in the future.
You may lose any bonuses you have earned and you might have to pay a higher premium for your insurance when you renew it if you make a claim.
If all you have had is a little knock, no one has been injured and the repair wouldn’t really cost very much to do, we would suggest that you have a chat with us first. It might be cheaper for you to simply to fix the damage than to make a claim.
No claims bonus
If you haven’t made a claim before, you will probably have earned some no claims bonus, which is effectively a discount on your next renewal.
You won’t necessarily lose all the no claims bonus you have earned under your motor trade insurance policy if you do make a claim. But does vary from insurer to insurer.
However, it will certainly be reduced. How much it is reduced would be decided by the nature of the claim. The amount of no claims bonus you might lose also varies from insurance company to insurance company, so please do check carefully what the consequences on your no claims bonus would be if you make a claim.
No claims bonuses apply to both Motor Trade Combined and Road Risk policies.
Your maximum motor trade no claims bonus will normally be allowed to be five years. The amount of no claims bonus you can prove will also affect any discounts you might have been offered when you arranged your motor trade insurance.
If you have thought about all the implications, particularly the possible future cost of your insurance, and you still think you need to make a claim, speak to us and we will guide you through the process to make it as pain-free as possible for you.
Making a claim will be a new and possibly challenging process for you.
But we’re used to it, so when you get in touch, we can help you get through the experience without it being too much of a pain.
The circumstances of an accident can sometimes be difficult and confusing, particularly if aspects of what happened are disputed. We can help get to the bottom of all of that and make sure that we reach the right outcome together.April 29, 2014