No Claim Discount Protection

No Claim Discount Protection

The no claim discount protection allows you to protect your no claim discount on your car insurance premium. A no claim discount is a discount on your car insurance premium and is calculated on the number of years driving without making a claim. Your no claim discount can also be known as a no claim bonus but will depend on the insurance company and what they refer to it as.

The way that the no claims discount protection works is that for each year you don't make a claim, your no claim discount will increase, with the maximum discount of rating 1 or 60 percent.

What this means is that if you make a claim as a result of an accident where you were at fault, your no-claim bonus will basically renew itself so you essentially start from the beginning.

But you can protect your no claim discount by including the no claim discount protection on your car insurance policy. This protection allows you to make a certain amount of claims within a certain period of time without your rating being affected.

Most car insurance companies give you the option of protecting your rating. Be aware however that to include this on your policy you may have to pay extra, but it may be worth it.

Obviously what each car insurer offers and the terms and conditions may be different, so compare car insurance quotes online to find one that offers you the right level of cover and protection.

 

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Learn more about car insurance

Can you insure your car for 6 months?

Most Australian insurers won’t offer you a 6-month car insurance policy, so you may need to buy a policy that covers your car for damages and cancel it after six months. You will need to purchase comprehensive car insurance to protect your car from accidental damage, theft, vandalism, or natural disasters.. 

Consider checking whether your 6-month comprehensive car insurance will cost more if you pay monthly or six-monthly premiums instead of a one-time annual premium. Another question to ask the insurer is whether you’ll need to pay administration or cancellation fees when you cancel the policy.

Alternatively, you can look for a suitable ‘pay as you drive’ car insurance policy, which usually offers you the coverage of a comprehensive car insurance policy but only requires you to pay for the distance driven. Such a policy may not be the ideal 6-month car insurance plan as it is based on how much you drive rather than for how long. If you need to drive a lot, you may end up paying more than you’d pay for regular car insurance. 

Does insurance cover a stolen car if keys were in the car?

A car insurance policy that covers the theft of your car, such as third party fire and theft insurance, usually covers a stolen car, even if the keys were in the car’s ignition.

However, your insurer may deny the claim if you live in an area where there have been several car robberies reported recently. They will see you leaving the keys in the car as a case of negligence. In such cases, your insurance provider may even expect you to have installed anti-theft security measures in your car. 

You may need to confirm whether or not you left your keys in your car, and if they had been stolen or misplaced, before filing your car insurance claim. The loss or theft of your car keys may be covered by a comprehensive car insurance policy, but usually as an optional item.

If you can confirm that your car keys were stolen, mention this in your claim as this will help establish that your car was not stolen as a result of your negligence.