Building a no-claims bonus (NCB) is one of the best ways to lower your car insurance costs. All you need to do is avoid claiming!
But if you switch insurers, can you take your discount with you, or do you have to start over?
In this guide, we’ll explain how no-claims bonuses work, whether they can be transferred, and what to watch out for when switching policies.
In this article:
- What is a no-claims bonus?
- Can you transfer a no-claims bonus to a new insurer?
- When can’t you transfer a no-claims bonus?
- What happens if you lose your no-claims bonus?
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What is a no-claims bonus?
A no-claims bonus (NCB), sometimes called a no-claims discount (NCD), is a reward for not making a claim on your car insurance. Each year you drive claim-free, your insurer applies a discount to your renewal price. The longer you go without claiming, the bigger the discount!
Here’s a quick breakdown of how much you could save:
| Years without a claim | Estimated discount |
|---|---|
| 1 year | 30% |
| 2 years | 40% |
| 3 years | 50% |
| 4 years | 55% |
| 5+ years | 60%+ |
*Exact savings rates depend on your insurer
Can you transfer a no-claims bonus to a new insurer?
Absolutely!
However, there are a few things to keep in mind:
- You need proof of your no-claims history, usually in the form of a renewal notice, cancellation letter, or an official statement from your previous insurer.
- Some insurers require continuous coverage. If there’s a gap of more than two years without insurance, your no-claims bonus may expire.
It’s always best to check you have (or request) proof of your NCB before canceling your policy to make sure you don’t have any problems transferring your bonus.
When can’t you transfer a no-claims bonus?
There are some situations where your NCB won’t transfer or may be subject to restrictions:
| Scenario | Can you transfer it? |
|---|---|
| Switching between UK insurers | Yes, most insurers accept NCB transfers. |
| Moving to a different country | No, NCBs usually don’t transfer internationally. |
| Changing from personal to business insurance | No, unless specifically allowed by your new insurer. |
| No insurance for 2+ years | No, most insurers require continuous coverage. |
What happens if you lose your no-claims bonus?
If you don’t have insurance for more than two years, most insurers will consider your NCB invalid, meaning you’ll have to start from square one.
There are a few ways to prevent this though:
- No-claims bonus protection: Some insurers let you pay extra to keep your NCB even if you make a claim or stop driving temporarily.
- Temporary car insurance: If you’re taking a break from driving, some insurers allow short-term policies to maintain your NCB.
Losing your NCB means you’ll pay significantly more when you take out a new policy, so it’s worth keeping it active where possible.
Find the best car insurance for Young Drivers
Your no-claims bonus is valuable, and switching insurers doesn’t mean losing the discount you’ve worked hard to earn.
When you’re looking for the best possible price on your car insurance policy, Young Car Driver makes it easy to compare policies and find the best deal.
Get a quote today and see how much you could save!