Non-Fault Accident: What Happens to Your No-Claims Bonus?

A no-claims bonus (NCB) or no-claims discount (NCD) can significantly cut the costs of your auto insurance premium by rewarding you for a claim-free record. But what happens to your NCB when you have been involved in an accident that wasn’t your fault and you file a non-fault claim?

The impact on your insurance is not always straightforward and varies on the circumstances of the accident and your insurer’s policies. We’ve gathered all you need to know about how no-claims bonuses work and how to keep your insurance costs low if you’ve found yourself in a non-fault accident.

What Is a No-Claims Bonus?

A no-claims bonus is a benefit that reduces your car insurance premium based on how many years you’ve been insured without filing a claim. This discount acts as a reward for safe and careful driving.

Each year you drive without making a claim adds to your no-claims bonus, which can significantly lower your insurance costs. The amount of the discount will vary depending on insurance providers, but the concept is the same: the longer you go claim-free, the bigger the discount.

Many different factors, like your age, driving experience, and location, go into the price you pay for your premium. This system encourages drivers to maintain a good driving record, and insurers may offer discounts of 5-60% for those with extensive no-claims history. 

How a Non-Fault Accident Affects Your No-Claims Bonus

When it comes to no-fault accidents, many drivers are concerned about how the accident might impact their NCB. Ideally, a non-fault accident should not affect your NCB because you were not the party at fault. Unfortunately, it can be more complicated than that. 

Some insurance companies might still reduce your NCB if they cannot fully recover the costs from the other party involved or if there’s a dispute about liability. To avoid surprises, it’s essential to thoroughly review your insurance policy’s terms and conditions.

Some policies explicitly say that a non-fault accident will not affect your NCB, while others might include certain caveats or conditions that might impact your bonus. By understanding your policy’s details, you can more easily navigate the complexities of how a non-fault accident might influence your insurance benefits.

How to Protect Your No-Claims Bonus

For many drivers, protecting their no-claims bonus is a crucial way to keep their insurance premiums more affordable. Here are some ways that you can help safeguard your NCB:

• Consider No-Claims Bonus Protection – Many insurance providers offer an optional service called “No-Claims Bonus Protection.” This allows you to make one or more claims within a certain period without affecting your NCB. Usually, there is an additional cost for this protection. Still, it can provide peace of mind and potentially significant long-term savings, especially if you’ve accumulated several years of discounts.
• Understand the Limits – While NCB protection ensures your bonus isn’t lost after a claim, it’s important to note that your overall premium might still increase. Insurance companies might view you as a higher risk for making a claim, regardless of your fault.
• Evaluate the Cost-Benefit – Whether it is worth paying for NCB protection depends on different factors, like your budget, the size of your discount, and your typical insurance costs. For example, if you have a 50% discount on a £1,000 policy, paying £50 for protection might be more worth it, as you’re still getting some savings overall. But it can be a bit of a gamble since you may not need to make any claims.
• Know What Claims Don’t Affect Your No-Claims Bonus – Some claims won’t impact your NCB, like when you are not at fault, and the insurer can recover costs from the other party’s insurer. This also applies to accidents involving uninsured drivers where you are not at fault. Minor claims like windscreen repairs typically won’t affect your discount either.
• Other Factors That Influence Premiums – Your claims history is just one part of how your premiums are calculated. Other factors like driving convictions or moving to a higher-risk area can also increase your insurance costs, even if your NCB is protected.

Caversham Coachworks Can Help With Car Repairs After a Non-Fault Accident

You should always look into getting repairs after an accident and avoid delays so it doesn’t impair your no-fault claim. When you need to get your car repaired after an accident, choosing an auto body repair shop with experience working with insurance companies can help protect your no-claims bonus.

Shops that are well-versed in handling insurance claims will be able to help you determine if the repairs can be covered without affecting your NCB, especially if you are not at fault. By working with a reputable repair shop, you can navigate through the repairs and claims process more effectively, minimising the risk of potentially having increased premiums.

At Caversham Coachworks, we want to help you get back on the road after an accident. We offer a variety of services like alloy wheel refurbishment, cooling systems and air-conditioning maintenance, paintless dent removal, swift same-day repairs, steering component repairs, the use of genuine parts, and electrical system maintenance and refurbishment. We have experience working with insurance companies and can reduce the stress that comes with repairs and their costs.

Visit one of our convenient locations in Caversham and Abingdon. We are here to help with traditional, modern, hybrid, and EV vehicles with our state-of-the-art equipment. 

Contact us today or use our free and easy estimator tool.