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A no claims bonus, also called a no claims discount, can be one of the most valuable parts of your car insurance history.
It usually builds up when you complete a year of insurance without making a claim. The longer you go without claiming, the more discount you may receive. The ABI explains that no claims discounts vary between insurers and can increase with claim-free years.
A no claims bonus is a discount given by an insurer when you do not make a claim during your policy year.
For example, if you have one claim-free year, you may receive a discount at renewal. If you continue driving without claims, the discount may increase over time.
The exact discount depends on the insurer.
Your no claims bonus can help reduce your premium. It also shows insurers that you have a claim-free driving history.
For many drivers, this can make a noticeable difference to the cost of insurance.
If you change insurer, you may need to provide proof of your no claims bonus.
Proof may include:
Keep this evidence safe.
When requesting a quote, enter your no claims bonus accurately. If you say you have more years than you can prove, your policy may be changed, cancelled or become more expensive.
If you make a claim, your no claims bonus may be reduced unless it is protected or the insurer treats the claim differently.
Some claims may affect your NCB even if the accident was not your fault, depending on whether the insurer recovers the cost from another party.
Protected no claims bonus is an optional add-on. It may allow you to make a certain number of claims without losing your no claims discount.
However, it is important to understand one key point:
Protecting your no claims bonus does not guarantee your premium will stay the same.
Your discount may be protected, but your overall premium can still increase because of other risk factors.
Different insurers have different rules. Check:
If you were a named driver on someone else’s policy, you may not automatically have your own no claims bonus. Some insurers may consider named driver experience, but rules vary.
If your no claims history comes from abroad or from a company car, check whether the insurer will accept it before buying the policy.
Your no claims bonus can help reduce your car insurance cost, but it must be accurate and supported by proof. If you are considering protection, check exactly what it does and does not cover.
Is no claims bonus the same as no claims discount?
Yes, the terms are often used to describe the same discount.
Can I transfer my no claims bonus?
Often yes, but the new insurer may ask for proof.
Does protected NCB stop my premium increasing?
Not necessarily. It may protect the discount, but your total premium can still change.