Why no-claims bonus not protected in Australia and UK, no-claims bonus not protected if you did not buy protected no-claims add-on $50 to $100 per year extra on comprehensive $800 to $1,500 per year, or you have less than 4 years no claims required to buy protection, or you have 3+ claims in 3 years exceeding protection limit, or serious offence like drink driving, dangerous driving, or insurer does not offer protection for your policy type third party property $300 to $500. Protected no-claims bonus, also called protected NCD, is add-on $50 to $100 per year extra which protects discount 20% to 60% saving $160 to $900 per year if you have 1 to 2 at-fault claims in 3 years without losing bonus, but if you did not purchase protection at renewal, bonus not protected and 1 at-fault claim $5K drops bonus from 5 years 50% $500 premium to 2 years 30% $700 premium increase $200 per year. Insurers require 4+ years no claims to buy protection, so if you have 1 to 3 years no claims 20% to 40% discount, you cannot buy protection, bonus not protected. If you have 3+ at-fault claims in 3 years, protection limit exceeded, you lose protected bonus and discount drops from 50% to 20% or 0%, premium increases from $500 to $800 or $1,000. Serious offences like drink driving, dangerous driving, unlicensed driving cause insurer to remove protection and may void policy. Some insurers do not offer protection for third party property $300 to $500 only, only for comprehensive $800 to $1,500. So no-claims bonus not protected if you did not buy add-on $50 to $100 per year, have less than 4 years no claims, have 3+ claims in 3 years, serious offence, or policy type not eligible for protection.
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