No claims bonus,
Definition of No claims bonus:
A reduction in the premium charged for insurance when no claim has been made during an agreed preceding period.
Discount or reduction in insurance premium allowed usually on auto accident policies. It can be as high a 60 percent of the premium, and is rewarded on the basis that there have been no claims (either by the policy holder or by a third party) on the policy in the previous period of cover. No claim bonus is not a no-blame bonus, it is denied irrespective of who was at fault and even if the claim amount is very small.
How to use No claims bonus in a sentence?
- Unlike car insurance, house insurance does not apply no-claims bonuses, therefore making a claim should not affect your premium - unless you go and claim something every week.
Meaning of No claims bonus & No claims bonus Definition