How to Get a No Claims Bonus with First for Women

It’s been quite a year for South Africans, and one of the many changes that has had an impact on how we live is rising inflation rates and a higher cost of living. By the end of 2022, the repo rate has increased six times[1] since January, which means credit repayments increased too. To put this into perspective, an R800 000, 20-year bond valued at prime could cost you R1 664 more per month than it did before!

If you're wondering where the money to cover these rising costs could come from, you should consider qualifying for cash back in the form of a First for Women Insurance no-claim bonus. Read on to find out what this is and how you can access it.

What is a no-claim bonus?

Insurance might be an essential purchase, but it’s also one you hope you never have to use. After all, nobody invests in insurance hoping that they’ll damage their car in an accident or have someone break into their house and rob them. After years of paying for insurance without claiming, you might feel that it’s an unnecessary expense that you’re better off without, however, this couldn’t be further from the truth. We all need to protect ourselves from unforeseen challenges by having good insurance coverage in place. 

Even if your monthly insurance costs are low, you’re still parting with your hard-earned money. First for Women Insurance understands this, which is why we offer our clients a cash-back rewards programme. The good news is that if you don’t make a claim for an uninterrupted four-year period, you could get your first year’s premiums or 25% of all your premiums paid back to you.

How does a no-claim bonus work?

If you’re insured and don’t make a claim on your insurance policy for four consecutive years, you can get your first year’s premiums or 25% of all the premiums you’ve ever paid – depending on which figure is the lesser amount – reimbursed to you as a no-claim bonus. However, this will not take place automatically – you have to opt for the Cash Back Plus option that we offer.

Here's an example of what this could look like in real life.

Ingrid Viljoen takes out comprehensive vehicle insurance with First for Women on her new car purchase. When it’s offered, she signs up for our Cash Back Plus option. She pays R1,000 per month for her car insurance for four years without interruption or making a claim. This means that she pays R12,000 for her first year of premiums and with annual increases collectively spends R55,200 on her car insurance over four years. 25% of her total premiums works out to R13,800 while her first year of premiums is R12,000, therefore it means she can expect R12,000 as her no-claim bonus at the end of the four-year period.

There are certain waiver benefits (including our Death and Retrenchment Premium Waiver Benefit) that come with the Cash Back Plus option that could help Ingrid even further. Should Ingrid pass away or become retrenched before she becomes eligible for her no-claim bonus, her payments will be covered for up to half a year without compromising her eligibility for the bonus.

Why am I not getting a no-claim bonus?

There are a number of reasons you may not be eligible for a no-claim bonus. Here are a few questions to ask yourself:

1. Did I apply for the Cash-Back Bonus Option in the first place?

Many people assume that you automatically get enrolled in a cash-back bonus programme simply by taking out insurance. However, you’ll need to request this option specifically from First for Women Insurance to activate it and you will also need to make sure it’s noted on your official policy documents.

2. Have I made a claim in the past four years?

The moment you make a claim, your countdown to receiving a cash-back bonus resets to the specific date of the claim. It doesn’t matter if you weren’t at fault for the accident that required you to make a claim or if the claim falls a few days short of your four-year claim-free period; your four-year waiting period begins again.

3. Have I experienced a lapse in coverage?

Bounced debit orders can happen to the best of us for a variety of reasons. It could be that your employer changed your salary date or that you moved banks and forgot to switch over your debit orders. Either way, a lapsed premium payment can reset the countdown to your no-claim bonus.

4. Is any of my insurance information incorrect?

While it’s rare, deliberately or accidentally breaking your insurer’s terms can lead to you losing your bonus and insurance coverage altogether.  An example of this is fronting, which is when a person with a better insurance risk profile (such as a parent with decades of accident-free driving experience) insures a vehicle on behalf of a high-risk individual (for example their 18-year-old child who’s just got their driver’s licence) in order to lower their premiums.

How can I get my no-claim bonus? Easy steps to follow

If you’re ready to enjoy a no-claim bonus, you might not have to wait four years to do so. Follow these steps and you could have money in your account sooner rather than later – even if you aren’t currently insured with First for Women.

1. If you’re currently with another insurer and haven’t made a claim or interrupted your coverage for a period of time, you can request a certificate from them attesting to this.

2. Contact First for Women to request switching your insurance. Make sure that your past and present insurance coverage do not overlap and that you have no gaps between coverage.

3. Sign up for First for Women’s Cash Back Bonus Programme. If you haven’t made a claim in four years, you could be getting paid before you know it!

Get online car insurance quotes from First for Women

At First for Women, we don’t believe you should have to pay towards insuring your car, home or handbag without experiencing any benefits from it in the long term.  To find out about getting a cash-back bonus or how you can switch to First for Women, get in touch with us by requesting a quote today.

 Sources:

[1] Moneyweb: Interest rates are up 325bps this year, how this affects your debt

Disclaimer: The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.