A no-claims protection plan and your auto insurance
When you purchase car insurance, you can also opt for a no-claims protection plan. With a no-claims protection plan, your premium remains the same even if you file one claim each year. However, car insurance with no-claims protection is more expensive.
Calculate Your PremiumWhat is a no-claim protection plan or no-claim guarantee?
When taking out a car insurance policy , you can opt for a no-claims protection plan. This is also known as a no-claims guarantee. If you choose this no-claims guarantee, your monthly premium will be slightly higher.
With this no-claims guarantee, you can file one claim with your insurer each year without it affecting the amount of your premium. However, each time you file a claim, you lose a certain number of claim-free years, even if you have auto insurance with no-claims protection.
The cost of a no-claims protection plan
The price of insurance with a no-claims discount varies from insurer to insurer. Insurers calculate the cost in different ways. With one insurer, you pay a fixed monthly amount, while with another, you pay an additional percentage on top of the premium.
Some insurers also base the price on the number of claim-free years you have. When calculating the premium for your auto insurance, you can select a no-claims protection plan as supplemental coverage. The cost of this will be reflected immediately in the calculation.
Switching to a Different Car Insurance Policy
If you switch to another insurer after a few years and a few claims, your premium will change. Your old no-claims discount will no longer apply. As a result, you’ll pay a higher premium on your new auto insurance policy.
Calculation Example
You pay €40 each month for your car insurance with your current insurer. If you file a claim, you lose your no-claims years, but your premium doesn't change. So you don't notice any difference at the time.
If you switch to another insurer after six months, they’ll look at how many claim-free years you have. Because you’ve lost some of those claim-free years, your premium will go up. For example, it might go from €40 a month to €55.
Pros and Cons of a No-Claim Protection Plan
Not sure if you need no-claims protection? The advantage of no-claims protection is that you pay a lower premium with your current auto insurer. But if you file a claim every year, there are also disadvantages.
A major drawback is that you lose your claim-free years and don’t accumulate new ones. You’ll also receive a smaller no-claims discount if you switch to another insurer. As a result, you’re less likely to switch to a cheaper insurer. In addition, you’ll pay more each month for no-claims protection.
Bonus-Malus Scale and No-Claim Guarantee
On the no-claims ladder, you can see how much of a discount you’ll receive. The number of claim-free years determines which step you start on. Are you at the top of the no-claims ladder because, for example, you’ve been driving claim-free for 10 years? Then a car insurance policy with no-claims protection won’t be of much use to you. Your monthly premium will likely be cheaper without the no-claims guarantee.
If you file a claim for the first time, you’ll move down a few rungs on the ladder. Still, the discount on your premium remains the same with most auto insurers. Only if you file claims frequently is it a good idea to get no-claim protection.
Claim-free years are recorded
The insurer stores claim-free years in Roy-data. Roy-data is a central database where insurers can see how many claim-free years a person has. Insurers also record the accumulated claim-free years here. If you file a claim, this is also recorded in Roy-data.
No-Claim Protection Is Especially Attractive to Young People
For young drivers who have just gotten their driver's license, a no-claims protection policy can be useful. Since young drivers have built up little or no discount, your premium will increase significantly if you file a claim.
Young drivers are also at greater risk and therefore pay an additional premium. To reduce the risk, you can purchase a no-claims protection plan.
Frequently Asked Questions About the No-Claim Protection Plan
When is a no-claims protection policy a good idea?
A no-claims protection policy is especially useful if you’ve been driving accident-free for years and want to keep the discount you’ve earned after a one-time accident. It can also offer significant financial benefits to drivers with high premiums or young drivers, especially if an accident would otherwise lead to a substantial premium increase.
What is the difference between a no-claims protection policy and accident-free driving?
Claim-free driving means you don’t file any claims and you build up your claim-free years. A no-claims protection policy, on the other hand, allows you to file a claim without your discount being reduced immediately, even though your claim-free years will technically decrease.
Does a no-claims protection policy affect my claim-free years?
Yes, although a no-claims protection plan allows you to maintain your discount percentage, the number of claim-free years does decrease in the background. This can be a disadvantage if you switch to another insurer later on, because they often base the premium on the actual number of claim-free years.
Can I purchase no-claim protection retroactively?
No, a no-claims protection policy does not apply retroactively. You must purchase this coverage before the damage occurs. If you’ve already caused damage without this protection, you cannot retroactively have that damage covered under a policy purchased later.
Related pages about no-claim discounts
Never Underinsured
Create Your Own Package
A wide selection
We compare all insurance companies for you, saving you time
Help from our experts
Can't figure it out? Our experts are always ready to help you
We'd be happy to help you right away
Having trouble figuring it out online? We're happy to help you via chat or WhatsApp.
Ask your question and get a response within 2 minutes