Image by Mark Crawley

Car insurance is a necessary cost of owning a car. Premiums have increased in recent years, and they’re particularly expensive for young drivers, who represent the biggest risk group. But it’s not all gloom and doom on the road because the best insurance companies offer no claims discounts for drivers who make no claims within a set period of time. Have a look at MoneySupermarket.com to find car insurance plans that include no claims bonuses.

Very basically, car insurance is a method of calculating risk. Factors that insurers consider are drivers’ age, income and marital status, and the type of car he or she drives considering factors such as technology, modifications and the likely cost of repair. Depending on these factors, insurers calculate the likelihood of an accident and charge a corresponding premium. In the event of an accident, a driver can claim against his insurance and the company will pay.

Drivers who stay claim-free for one year can claim a percentage on their insurance because they represent a low-risk group. The longer they remain claim-free, the more money they can claim back on their premiums. This doesn’t necessarily mean that premiums will go down or that accidents will not happen – unfortunately that’s not the way of the world. Insurers consider many factors, including claims histories, when setting annual premiums.

No claims discounts build up usually over a maximum of five years, over which time drivers can earn percentages of up to 75 per cent off their premiums. Insurance companies have different schemes that allow drivers to accumulate bonuses in different ways, particularly to encourage young drivers to be safe on the road. There are some claims – such as when an accident was caused by a third party whose insurance covers the damage – when the bonuses aren’t affected.

Get your car covered with vehicle insurance from reliable brands and enjoy no claims bonuses of up to 75 per cent off the cost of annual premiums.