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Unsafe drivers often have dents in the front, dents in the back, four fenders with four different colors and, even if the car was made entirely of glass, they would fail to see what is in front of them.
But, like millions of American drivers, you are a safe driver. For you, vehicles last ten or more years without a single blemish. Perhaps the only time you get stopped by a police officer is because he’s your neighbor and he’s simply saying good morning as you both head off to work. But where is the reward for your good behavior?
What is the reality of competition and car insurance?
Car insurance companies today are increasingly competing for your business. Like any other industry, market share means everything in terms of growth and investment. It’s time we understand what and who helps the car insurance business.
• Good, safe drivers. When insurance companies do not have to pay out on a claim, the company benefits by the age old adage: A penny saved is a penny earned.
• Good, safe vehicles. When accidents do occur, the better protected the occupants are equates to savings for the car insurance company.
• Each and every day, car insurance companies are seeking to get rid of the bad policies and shore up the good ones. The successful companies are able to offer the most consumer benefits, and are able to attract the most investors on Wall Street.
What are the benefits of no claims car insurance?
In the past, the only reward for keeping your driving record clean for several years was that your car insurance company would at least not raise your rates. Now, you can use many methods to keep your car insurance affordable.
Today you can use the free car insurance quotes tool and easily find car insurance companies looking to reward safe drivers with rate reductions. It is called a no claim bonus, and it is probably the single greatest factor affecting car insurance premiums.
• When customers have not issued a claim in several years. Some car insurance companies reduce premiums between 60 and 75%. For example, a new car premium of $1500 per year will be reduced and save good drivers over a $1,000. That’s half of what most people spend in gas per year.
• Your no claim bonus car insurance rate is also applicable when changing from one car insurance company to another. Typically all that must be done is for the customer to provide documented proof of the bonus.
• No claim car insurance bonuses can be achieved in as little as four years. Chances are you and your family already qualify.
MORE BENEFITS OF NO CLAIMS CAR INSURANCE
Already, millions of safe drivers are reaping the benefits of driving safely for several years at a time. They’re spending their savings on vacations, TVs, fancy dinners, road trips, and larger amounts of insurance coverage.
Not surprisingly, many are unaware of what happens with their bonus should they be involved in an accident and have to file a claim. Does the bonus get swiped away completely with a single incident?
• As noted before, no claims bonuses are available through most car insurance companies for drivers with zero incidents for 4 or more years. Yet, many maintain their bonus well beyond 7 or 10 years.
• In the interest of maintaining customer loyalty, single incidents do not reduce the years of bonus entirely. For example, a person with 7 years of no claims car insurance bonus may see that number reduced to 5 years.
• Or, a customer with the minimum 4 years may see that number reduced only to 3. Thereby, the client will not have to start again from scratch.
• In addition, for a fee, car owners can pay to protect their no claims bonus. For example, if an accident occurs, the insurance company will provide the client a price to pay that will allow the insurance bonus to continue as is without adjustment.
• Due note however, that it is the bonus that is not affected. The premium may still be elevated due to increased risk.
How are no claims car insurance bonuses affected by no fault/fault determinations?
If you are the victim of an accident and the incident is determined legally to be the other drivers fault, then there is no impact to the bonus.
• As mentioned earlier, there is a difference between the bonus and the premium for car insurance.
• After an accident, the $1500 premium may be increased to $1800.
• However, the bonus, which is a percentage point and not a dollar figure, will remain unchanged.
• Simply, if your bonus for being a safe driver was 60%, it will continue to be 60% of the new premium.
As with any money saving offers from any business, it is best to get in while the offer is still fresh on the table. Do yourself a deserved favor and use the free car insurance quotes tool.