What is a no claims bonus (NCB)?

No claims bonus can reduce the cost of your car insurance premium by 50% after just three years of driving. You earn your NCB, and you can change your car or insurer without losing it!

1. What is a no claims bonus?

The no claims bonus (NCB) is a count of the number of years in which you haven’t claimed on your insurance policy.

2. How much no claims discount will I get?

Your no claims discount increases each year you don’t make a claim.

  • 30% off after 1 year.
  • 40% off after 2 years.
  • 50% off after 3 years.
  • 60% off after 4 years.
  • 65% or more after 5 years.

3. Can I build up an NCB if I’m a named driver on someone else’s policy?

Some insurance companies do offer “no claims bonus” for named drivers but not all insurers will recognise your discount if you want to change insurers.

4. If I change my car will I lose my no claims bonus?

No. Your NCB follows you the policyholder, not the car. You can change your car and keep your no claims bonus.

5. What happens if I change my insurer?

When you change to a new car insurance company you take your no claims bonus with you.

Your new insurer will need proof of your NCB you should find this in the latest renewal letter from your previous insurer if not then ask them to send it.

6. Will I lose my no claims bonus if I make a claim?

If the accident is your fault, and you make a successful claim on your insurance, your no claims bonus will be affected.

If you are not deemed to be at fault for an accident your no claims bonus should be safe.

Your NCB could also be affected if the car:

  • Is stolen.
  • Is damaged by bad weather.
  • Hit when parked with you away from the vehicle and the culprit is unknown.

Payments such as for a damaged windscreen won’t affect your NCB.

7. How much no claims bonus will I lose if I make a claim?

Different insurance companies have their rules for reducing NCB but typically:

  • You will normally lose two years NCB each time you make a claim where you are at fault.
  • A three-year discount would become one year when you next renew your insurance.
  • A further claim and your no claims bonus would be wiped out.

8. Is it worth paying to protect your no claims bonus?

You can start to protect your no claims bonus when you have built up four years worth. Then if you make a claim on your car insurance, your NCB won’t be affected.

Some insurers allow you two claims in five years before your NCB gets reduced but others only two claims in three years.

Despite having NCB protection, if you make a claim your premium can still go up because your claims history is used to calculate the premium, and the No claims bonus applied after.

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