In Thailand, a no-claim bonus and discount can save you a lot of money on your car insurance premiums. Find out more about how they work and how to obtain them.
A no-claims bonus, also known as a no-claims discount, is a percentage discount your insurer gives you to reward you for not filing for a claim on your car insurance policy in the years that had gone by. The discount can grow yearly if you don’t file for a claim.
If you have no claims of at least 5 years or more, you may get a huge discount on your premium, though this can differ between insurance companies, the maximum discount offered by some companies can be as much as 70-75%.
No claims bonus and discounts provide numerous benefits. These include:
You may lose some or all of your no-claims bonuses if you file a car insurance claim. Even if the accident you’re claiming for wasn’t your fault, you could lose your bonus. However, in some cases, if you’re hit by another car and weren’t at fault, your insurer should be able to reclaim the payout from the other car’s insurer. Your no-claims bonus will not be affected in this case. If the fault can’t be agreed on, insurers of both drivers may need to split the cost of the claim, which will affect both drivers’ no-claims bonus. Claims due to other reasons, such as a windscreen replacement, may affect your no-claims bonus.
No-claims bonus increase for every consecutive year that you don’t file any claims.
When you change car insurance providers, you can transfer your no-claims bonus and discounts to the new insurance company. If you’ve taken out your contract, your new insurer will ask you to provide proof of your claim-free status. They can raise your premium price or cancel your coverage if you can’t provide any proof.
Here’s how you can prove your claim-free status:
Transferring your no-claims bonus allows you to carry over the benefits without having to start from scratch every time you change insurance company. However, keep in mind that you won’t always see perfect continuity. Different insurer means different no-claims bonus schemes and rules.
A no-claims bonus of five years or more may give you a big discount on your premium.
You’ll earn another year’s no-claims bonus for every year you are insured without filing a claim. Some companies may offer accelerated policies, which enables you to earn a bonus every 10 months instead of 12. Most insurers may only use a maximum of 5 years when they work out a discount, although you can build up an unlimited number of no-claims bonuses.
Here are some tips on how you can make the most out of your no-claims bonus and discount: