A no-claim bonus is a discount in the insurance premium for drivers who dont make claims. A

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A no-claim bonus is a discount in the insurance premium for drivers who don’t make claims. A driver accumulates a no-claim bonus by driving safely and avoiding accidents. The longer the period of no-claim, the greater is the no-claim bonus. And the greater the bonus, the greater is the incentive to drive carefully.

Insurance companies try to make a careless driver or an aggressive driver pay a higher premium . . .

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Foundations Of Microeconomics

ISBN: 9780134491981

8th Edition

Authors: Robin Bade, Michael Parkin

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