No Claims Bonus Car Insurance For Young Drivers Under 25

If you have driving carefully without getting involved in any accidents for at least a year, you may be entitled to buy no claims bonus car insurance for young drivers which means around a 30% discount off your next policy renewal rates. This is especially significant for young drivers under 25 years old, since it is the most effective method to get the cheapest and best car insurance for young people.

If you are a a new driver who is shopping for your cheap first time car insurance, you may or may not have understood what we meant about the terms 'No Claims Bonus' or 'No Claims Discount Car Insurance'. That is because they do not apply when you are starting to drive in your first year. Essentially, this is a form of car insurance incentive offered by good insurance companies to promote safer driving, lesser accidents and hence lesser claims for the companies. If you do not make any claims, you are viewed as a cheaper customer to the company and hence they will offer you no claims bonus car insurance discounts to attract you to continue buying your car coverage from them.

Best Way To Buy Cheaper Car Insurance For New Drivers

There is no reason not to drive safely and protect your clean driving records since your car insurance policy renewal rates actually goes up by 10% to 50% the next year after you have made a claim this year, depending on the severity and number of accidents you have caused. That means you may no longer have access to cheaper car insurance for new drivers anymore.

The amount of percentage discounts safe drivers can get will depend on their insurer company, although the discount is usually larger in the first 2 years, which is reasonable since you too would feel discouraged if you have been conscientiously keeping out of traffic accidents for 3 years and only to lose everything by a freak accident that is obviously not your fault at the last moment to break your no claims bonus driving records.

Typically, this means a 20% discount car insurance rates for driving without claims for the 1st year, another 10% in the second year, and 5% more for each subsequent year until you hit the 'Maximum No claims Bonus' accrued (hey, the insurers cannot let you continue to earn no claim discounts up to 100%). How high this limit varies from company to company, but larger ones with more policyholders in their pool of drivers will be able to spread the claim risk for evenly and hence can offer better no claims bonus drivers insurance for young people although this alone should not be the primary factor for choosing the best car insurance deals.

Adding The No Claims Discount Protection Cover

Furthermore, after you have managed to clock five successive years of driving without having to file any car damage claims against your policy, most of top 10 car insurance companies have some sort of maximum no claims discount protection programs (max NCD) that allow you to protect your no claims bonus status that you have built up so painstakingly over the last 5 years.

This is not free, but for paying a small additional premium, you will be able to make claims therafter if you really have some damages to your vehicle without worrying that you are forced to give up your no claim bonus car insurance discounts. When considering whether to purchase this additional no claims bonus protection cover or not, you just need to ask youself if the continued discounted car insurance cover for young drivers are worth more or not. Usually, people who do drive frequently will buy in since you can never tell when road accidents may happen which are often out of your control even if you drive carefully all the time, or you seldom drive and think your vehicle is safe in the garage.

It seems quite a formidable feat to be able to drive without any accidents or vehicle damage whether major or minor for 5 years consecutively. Actually very few people are able to achieve that, yet they still can enjoy the best low cost no claim discount car insurance rates. You know why? Read the title again, we only talked about not making a claim with your insurer and that has nothing to do whether your car was ever wrecked in a collision or not!

Yes, many car owners, especially young and new drivers chose to absorb the repair costs for simple scratches and damages on their own instead of filing a claim for compensation from their car insurance companies. This is because they typically chose high deductible car insurance plans to lower the rates and that means even if they make a claim, they still have to pay a high percentage of the repair fees such as the first $1000 before the insurers cover the rest of the bills. Hence, there is no point for to report an accident claim if the estimated damages cost less than $1000 while for major repair works, the situation usually depends on whether the drivers wanted to maintain a clean driving history or not.

Although it is often tempting to settle repair bills privately if you are involved in a minor collision, you need to be warned of the risks involved because there are people that set up such accidents on purpose to prey on unsuspecting drivers that are trying to avoid filing claims with their insurance companies. Sometimes they will ask for more than necessary to cover their car repair costs, or they will blame you for pre-existing problems on their cars and let you pay for these. If you are not careful, you may end up paying more than just losing your no claim discounts car insurance coverage come next renewal year.

Always insist on letting your trusted garage or mechanic handle the repairs for both vehicles or at least let them estimate the total costs that can amount to, such that you are able to make a better decision whether to claim or settle it privately on your own. Do not sign any compensation agreements at all with the other party, unless you are trained in law and will not be trapped by any clauses laid out by the other driver. Yes, all these incidents are very tedious and can balloon into complicated matters so do drive carefully and do not be hesitate to rely on your car insurers if the matters calls for it. On the minimum, you already know the upper limit on how your future car insurance rates will cost after losing your no claim discounts.

In the past, this no claims bonus protection cover is actually designed to bind consumers to their existing insurers since it will be a waste of effort and loss of discounts to switch carriers even if there is a better car coverage plan introduced by other companies. This was due to the fact that driving records are typically not shared among companies previously. However, now most of the car insurers are exchanging up to date policyholder data amongst themselves and it is possible for you to sign up for a new car insurance plan from another company while carrying over your NCD protection status. You will usually be asked to provide some form of proof of your no claims bonus records which can be obtained from your current carrier.

If you are a parent and have teens in the family that have just passed their driving tests, you are probably wondering where to buy cheap first time car insurance for young drivers. For a start, try adding them as secondary named drivers on your policy, some car insurance companies will allow these named young drivers to build up their own no claims driving records as well, but not every company does so. To digress, we consider the parent as the policy owner and the main driver of the vehicle being insured while named drivers will be using the vehicle on secondary basis or less number of hours of driving.

It is a better idea for these new drivers under 25 years old to start early and attain several years of successive no claims bonus discounts such that they can enjoy cheaper car insurance for young drivers. This will be the best of both worlds because if they are not added as named drivers but buy their own separate policies, the rates charged will be very high and no discounts are available for them. Yet, if these teen drivers are covered under your plan but your insurer do not allow these secondary named car users to build up their individual no claims bonuses, they will not be entitled to any discounts in future if they move out of your residence and need to buy their own car insurance plans under 25 years old. Therefore, do check with your carrier before making any decision. A recommended car insurance company for this is Direct Line, so no claims bonus car insurance for young drivers under 25 can be realized sooner compared to getting your first vehicle coverage from other providers.