Do you have a No Claim Bonus on your car insurance? If you do, chances are you are quite proud of it, especially if you think it’s providing you with a discount. like a 65% No Claim Bonus.
But have you ever really thought carefully about what all of discounts like the ‘No Claim Bonus’ actually mean? Let’s take a minute to explore the mystery of the No Claim Bonus then…
John is 32, and has an excellent driving record. His insurer ‘rewarded’ him by giving him a 65% No Claim Bonus. This brought his car insurance premium down to $700 per year.
If you do the math though, then the full-priced premium without a No Claim Bonus should be $2000. Therefore, if 90% of people are on a maximum No Claim Bonus, it would seem that insurance companies are losing a lot of money! But is this really the case?
Some insurance companies don’t tell you the full price of your insurance before they apply your No Claim Bonus. In fact, they can charge you whatever they like, and claim that it is discounted by 65%, because they don’t tell you the full-priced premium. So how do you know that the discounted premium you are receiving is actually 65% off the full-price? The short answer is that you don’t.
The lack of transparency is quite disheartening.
Real Insurance aims to be transparent and authentic in the products and service it provides. And that is why Real doesn’t use the questionable No Claim Bonus rating.
Instead, we reward you with cash back in your pocket. It’s simple: After every 3 claim-free years you that have a policy with Real Insurance, we will give you back 10% of the premiums you have paid us during that time. This is a true reward for not having any claims. And it’s actual money given back to you to spend on whatever you like, not a discount off your insurance.
What we do is simple, we charge EVERYONE the most affordable premium possible ALL of the time.