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No claim bonus explained

Helping you save money on your car insurance

No claim discount? No claim bonus? NCB? These terms all refer to a discount your insurer can apply if you take out a policy, but don't make a claim for a full year.

Take a look at our complete guide to understanding your no claim discount – and how it can help reduce the amount you pay for your car insurance.

What is a no claim bonus?

A no claim discount (NCD), sometimes referred to as a no claim bonus, is a discount your insurer can apply to the price of your car insurance policy for every year that you haven’t made a claim.

The amount of money it’s worth varies for each insurer, but the more consecutive years you go without making a claim, the less of a risk you are to the insurer, so the greater the discount you’re likely to get. 

How do I build up a no claim bonus?

You’ll build up a no claim discount for every consecutive year that you don’t make a claim on your car insurance.

Technically, you can build up an unlimited number of years without making a claim, though most insurers will only take the first 5 years of no claims into account, but some might offer more.

You might also find that some insurers allow you to earn a full year's no claim discount in 10 months rather than 12. This is sometimes called an ‘accelerated no claim bonus’.

What happens to my no claim bonus if I make a claim?

If you make a claim on your policy, or someone makes a claim against your policy and your insurer has had to pay out, then you’ll likely lose your no claim discount, or at least part of it.

Whether you lose your no claim discount if a claim is made isn’t always to do with who’s at fault. For example, if you’re hit by an uninsured driver and it wasn’t your fault, some insurers could still remove your no claim discount as they’ve had to pay out on the claim.

With our car insurance though, you’ll get uninsured driver cover as part of our comprehensive insurance.

Different insurance companies will have different rules around no claim discounts, so make sure you check this before you take out your policy.

Can I protect my no claim bonus?

Many insurers will offer you the option to protect your no claim discount. This means you’ll pay an additional amount as part of your premium so not to lose your discount if you do need to make a claim.

And when you protect your no claim discount, there’s often a limit to how many claims you can make in a single year without it being affected.

Each insurer will have different rules around no claims bonus protection, so double check these before you take out your policy.

And remember that protecting your no claims discount doesn’t guarantee that your premium won’t increase – only that you'll still receive the discount on your premium.

How long does no claim bonus last?

If you’ve had a break from driving for a while, you may still be to apply your no claim discount to a new policy you take out.

Most insurers will allow you to use a no claim discount if you’ve been absent from driving for 2 years or less – though some may extend this to 3 years.

If you’ve been living abroad or driving a company car and want to transfer your no claim discount, you’ll often be asked to provide written evidence of your insurance history. Though whether your no claim bonus is applied will be at the discretion of your insurer.

Can I build up a no claim bonus on a MultiCar policy?

While this depends on the insurance provider you have, most companies will treat each vehicle or driver separately under a MultiCar policy.

For example, with our MultiCar insurance, each vehicle builds up its own no claim discount, so if one is involved in an accident and you need to make a claim, the others won’t be affected.

Check with your provider when you take out your policy to see how they treat NCD on a multi-vehicle policy.

Can I build up a no claim bonus as a named driver?

Again, this really depends on your insurance provider.

Generally, named drivers don’t build up NCB unless they’re the main driver on the policy – as it’s often the main driver’s driving record that determines the level of risk of the policy.

However, this does vary between some companies. It’s definitely worth checking this when you add a named driver to your car insurance poicy – as even though they might build up a no claim bonus with one company, it’s not always possible to transfer this to another provider in the future.

How can I get proof of my no claim bonus?

If you decide to change your insurance provider – or take out a new policy after a break from driving – you’ll need to provide proof of your NCB if you want to apply it to your new policy.

Most insurers will send you proof of your no claim discount automatically either when you renew your policy, or if you choose to cancel it. Though some may require you to request this separately over the phone, by post or on their website.

Remember that if you cancel your current policy, you’ll have up to 2 years to use your no claim discount – or you’ll lose it altogether. 

What happens to my no claim bonus if I change my car?

Most insurers will allow you to transfer your no claim discount to another car, but if you make a change in the middle of a year, you might not get a bonus for that particular year.

With our car insurance, each policyholder will earn a separate no claim discount for each vehicle they insure. 

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