Answering your frequently asked questions on No Claim Bonus.
When you take out a classic car insurance policy from a specialist insurance broker, you have the peace of mind that your classic and its value are protected; but what about your No Claims Bonus?
Classic Car Insurance has a number of benefits, and in some ways the policies are very similar to a standard private car policy however classic car policies have been specifically tailored to cater to the use of classic cars, and to protect their value. The majority of classic car polices won’t cover the driver earning a No Claims Bonus.
Question One: Why don’t I earn a No Claims Bonus on a classic car policy?
The biggest difference between a classic policy and a standard private car policy is that the policy premiums are ‘flat rated’ which means they are based on the vehicle and it’s use. This is why you won’t earn a No Claims Bonus on a classic car policy and a No Claims Discount won’t be applied as the insurance policy is not based on whether you are a safe, claim free driver.
Another point to consider is that with the majority of classic car policies, one of the conditions when taking out the policy is that you own a second vehicle. As you own this second vehicle, your No Claims Bonus is being earned and any discount is being applied to the insurance premium on that vehicle. So it’s unlikely that your No Claims Bonus would have an effect on your classic car insurance policy even if it was taken into account because its benefit is already being used.
Question Two: Will my No Claims Bonus make my classic car insurance cheaper?
Classic car insurance premiums are general calculated based on conditions and criteria such as limited mileage and owning a second vehicle. These conditions ensure that the risk is lower than your average day to day commuter. If you’re only doing 3,000 miles a year in your MGB whereas you’re doing 30,000 in your Mondeo the likelihood of having an accident in the Mondeo is much higher than in the MGB. This is why classic car premiums tend to be lower, because the risk to the insurer is also lower.
So, because of the premiums being calculated around the risks of the vehicle and the use rather than you as a driver, your No Claims Bonus isn’t applied to the premium and won’t affect the price.
This is why it’s important to insure your classic with a specialist broker, who understands your classic and how you use it. Here at Heritage Insurance we take the time to find you the best quote from our panel of insurers tailoring a policy to you and your vehicle. An ‘off the shelf’ policy may take into account your NCB, but it can often still be more expensive than a classic policy because the insurer would calculate the premium based on all the risks associated with modern car ownership.
Question Three: Do I lose my No Claims Bonus if I take out a classic car policy?
No, when you take out classic car insurance your No Claims Bonus is most likely still being applied to and being earned on your second vehicle so shouldn’t be affected by having a classic car policy.
It’s important to note that if your No Claims Bonus isn’t being applied to any insurance policy i.e. if you don’t have a second vehicle insured on a standard private car policy, your No Claims Bonus does expire after two years of no use.
Question Four: Will my premium be affected if I claim on a classic car policy?
Part of the reason why classic car insurance premiums are so low is because very few claims are made on them compared with modern car policies. This is due to the nature of classic car ownership, the cars are driven less and usually more carefully than modern cars also when not being driven classic cars tend to be kept secure and safe in garage or storage space.
If you do ever need to claim on your classic car policy you’ll find that when you come to renew, as long as you still fit in with the conditions and criteria you shouldn’t see much of an effect on your premium (This does of course depend on the nature of the claim, and your insurer).
Question Five: How does No Claims Bonus work for Multi Car Insurance?
Here at Heritage we understand that a lot of classic car or specialist vehicle owners tend to have more than one vehicle, which is why we developed our specialist Multi Car scheme. Unlike many multi car policies, ours allows your to have all your vehicles on one policy. Whether that’s classics, moderns, bikes or van. This means much less hassle, with just one renewal date and one person to deal with.
With Heritage Multi Car Insurance you’ll earn No Claims Bonus on any modern vehicles where you’re the main driver and your NCB discount will be applied.
Whilst insured as the main drivers of these vehicles you’ll continue to earn your No Claims Bonus, if you then change one of the vehicles (so for example you sell one car and buy another) your NCB will be applied to that vehicle instead.
If however you started the policy as the main driver of two vehicles, with the No Claims Bonus being used for those two vehicles, and then you add another to the policy, your No Claims Bonus will need to start from the beginning on that vehicle with you earning as its insured.
If you’d like more information about how our Multi Car Insurance speak to a member of our team today, simply call 0121 248 8646.