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The Insurance Policy - is simply a contract between you and an insurance company. By paying a certain amount, you cover yourself against loss or damage to your vehicle. Your policy can also protect you against loss or damage to someone else's vehicle or property.
CLAIMING ON YOUR POLICY
Before making a claim, check:
1) Your Excess
This is the amount stated on your policy that you must pay when you make a claim. If you (or the driver of the car) are under 25 years of age, a special excess will be applied over and above the normal excess of the policy. If the damage is less than your excess amount, it may be worth paying for your own repairs and keeping your no claim bonus.
2) No Claim Bonus
Where there has been no claim, the insurance company will normally, at the renewal of the premium (annual payments), adjust the rate so that the insured receives a discount. Conversely, if the insured has made a claim throughout the year, then the premium will usually be increased as a result.
The no claim bonus is generally worked out as a percentage of the standard premium. Different insurers apply different percentages of no claim bonuses. Some insurance policies are called fully cushioned policies. This means that if a person makes a claim, the no claim bonus is not completely cancelled, but goes up one rating.
Some insurance companies will allow the insured to keep their no claim bonus even if a claim has been made, if the accident is not the fault of the insured and the insurance company has been able to recover damages from the party responsible.
Your no claim bonus is usually transferable from one company to another if you can give proof of your no claim bonus, e.g. on your last renewal notice.
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