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How can a no-claims bonus help you to keep your car insurance cost down?

While the Mercedes SLK is a beautiful line of cars, it is also quite expensive to insure. As with any higher-end model, these cars tend to cost a lot to repair and, as such, insurers look upon them as being a riskier investment. Therefore, people who own one of these cars are likely to face much higher premiums than most other people.

Mercedes SLK

One of the best ways of keeping these premiums down, however, is by building up a good no-claims bonus history. A no-claims bonus can offer a big discount on your premiums, so finding the car insurance for your Mercedes that offers the best discount could be a great way to save money. The details of this bonus, however, can get confusing, and many people have questions about how much they can save with it and what the eligibility restrictions are. This article will help answer those questions and will show how this bonus could be your best tool to saving money on your car insurance.

How does a no-claims bonus work?

Insurers tend to reward drivers who have a proven track record of driving carefully and not making claims. As such, people who have a long history of making no claims on their policies are often rewarded with a discount on their premiums. This discount is usually given out annually and will only take effect if you have made no claims during the previous year. For each additional year afterwards that you don’t claim you can usually increase this bonus further. In some cases, you may be able to get as much as a 70% discount off of your premiums. Also, if you switch insurers you can usually carry over your no-claims bonus to the new insurer. Of course, the new insurer will need proof that you made no claims with your previous provider. In most cases, this will mean handing over details of your previous insurer to your new insurer so your claims record can be verified.

no-claims bonus

Will any claim end a no-claims bonus?

Generally speaking, whenever you make a claim on your insurance policy then you will lose your no-claims bonus. For this reason, you should only make a claim if the damage sustained to your car is fairly extensive or if you can’t afford to cover it yourself. Losing your no-claims bonus simply to get a dent repaired is usually not worthwhile. Some claims, however, may not affect your bonus. Windshield cracks, for example, will usually not have an effect on your claims record, although this will depend on the extent of damage sustained by your windshield. Also, some insurers offer what is called a protected no-claims bonus. With a protected no-claims bonus you will typically be able to make one or two claims a year without losing your bonus. This sort of policy will cost a bit extra, but it may be worth the cost if you’ve already built up a big no-claims discount. Also, if you are hit by another driver and he accepts liability for the accident, then his insurer may pay for the damage caused to your car. In this case, you will likely be able to keep your bonus.

Named Drivers

Two drivers on one policy can complicate a no-claims bonus. Usually, if either driver has to make a claim then both drivers will lose their no-claims discount. In some cases, however, the main policy holder will not lose his bonus if a named driver on the policy has an accident. Of course, every insurer differs in how it treats named drivers and no-claims bonuses, so it is important to always carefully read the terms and conditions of your policy beforehand to see if it works for your situation.

Car insurance is a large expense, especially if the car you are insuring is a relatively high-end model. If you are looking to find car insurance for your Mercedes SLK you will want to know how your no-claims bonus works. A no-claims bonus is one of the best ways of getting a big discount on your premiums, and if you research how to get the most out of this discount you will be well on your way to saving money.

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