How protected no claims work in Australia and UK, protected no claims bonus, also called protected no claims discount NCD protection, is add-on $50 to $100 per year extra on comprehensive car insurance $800 to $1,500 per year, which protects your no claims bonus discount 20% to 60% saving $160 to $900 per year if you have accident, allowing 1 to 2 at-fault claims in 3 years without reducing bonus, with base premium still may increase 10% to 30% due to claim. Protected no claims works by paying extra premium $50 to $100 per year on top of comprehensive $800 to $1,500, which protects your no claims bonus discount 20% to 60% from dropping after at-fault claim $5K to $20K, for example 5 years no claims 50% discount $500 saving on $1,000 base premium = $500 premium, with protection $70 extra = $570 total, you have 1 at-fault accident $5K claim, with protection you keep 50% discount next year, so renewal premium = base $1,000 x 50% = $500 plus $70 protection = $570, without protection discount drops to 30% $1,000 x 30% = $700 premium, so protection saves $130 per year $260 over 2 years for $70 cost. Protected no claims typically allows 1 to 2 at-fault claims in 3 years without losing discount, if you have 3+ claims in 3 years, you lose protection and discount drops from 50% to 20% or 0%, premium increases from $500 to $800 or $1,000. Some insurers require 4+ years no claims to buy protection, and protection does not protect base premium which may increase 10% to 30% due to claim $100 to $300, so total premium may still go up 10% to 20% $80 to $300 despite protected discount. So protected no claims works as $50 to $100 per year add-on protecting discount 20% to 60% for 1 to 2 claims in 3 years, saving $130 to $300 per year premium increase after claim.
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