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Car Insurance No-Claim Bonus

A no claim bonus to your insurance company is a very important factor in determining what your car insurance premium will by holding a significant weight when calculating your risk profile.

If you have been in an accident that was not your fault, in many cases this has the effect of cancelling your no claim bonus. This should not happen as the insurance companies have a claim for claim payment system that allows them to claim back your excess from the insurance company of the person whose fault it was. This has the effect of it costing your insurance company nothing and should hence not affect your no claim bonus.

Unfortunately in South Africa there is a very high percentage of uninsured vehicles on the road, in which event the insurance company or your broker would need to claim the excess back from the person personally. If they are successful in claiming the excess back, this should also not affect your no claim bonus.

In every case where your no claim bonus has been effected by an accident which was not caused by you, you should always contact your insurance company and notify them of the fact, requesting that your no claim bonus be reinstated. This is very important to do as your premiums will be reduced and your overall risk profile reduced.

In South Africa, with as many as 70% of all cars on the road not being insured, it has the effect of increasing premiums so fight for every last event which should not negatively affect your insurance premium. The bottom line for the insurance companies is, if you do not make a claim they are making money from you as an insurance customer, with the downside being that you are cross subsidising those that claim frequently and the losses incurred by non recovery from those whose cars are not insured, so boost your car insurance risk profile as often as you can. Those that make contact and make a case to support their no claim bonus being reinstated are those that are likely to have their no claim bonus reinstated. It is a sad but true fact that unless you ask your insurance company you will not get.

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