Imagine a world without no claims bonus. If you have built up a good history of claim free driving, there is probably nothing that fills you with more dread than the prospect of losing your hard earned No Claims Discount. And, of course, these days, once you have it, you can protect it – at least for the first claim or two.
But for many drivers who haven’t been able to build up NCB entitlement, the price of insurance can be a massive problem. Young drivers and drivers of performance cars (often second cars) in particular have a big problem with lack of no claims.
In truth, having managed to avoid accidents is often, in practice down to luck as well as judgement and safe driving.
And there are other ways that you can lose your valuable NCD too, such as coming back from a period abroad or leaving company car schemes.
One fresh way of catering to this market is that available from Magic Quote, where the no claims bonus is abandoned in favour of a higher excess than usual. It’s certainly not a method that is suitable for everybody, but for the target market, who have been let down by the no claims system, it offers a route to affordable car insurance.