No claims bonus explained

Helping you save money on your car insurance

No Claim Discount? NCD? No claims bonus? NCB? All these terms refer to the same thing – a discount your insurer can apply to the price of your car insurance policy based on previous years where you haven’t claimed on your policy.

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 claims bonus?

A no claims bonus, also known as a No Claim Discount (NCD), is a discount your insurer can apply to the price of your car insurance policy to recognise your claim-free driving history.

The amount of money 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 might get. 

How does no claims bonus work?

For every consecutive year that you don’t claim on your car insurance, your No Claim Discount could get larger. Your insurance provider can then apply a discount to the price of your car insurance. Bear in mind that you can only apply your No Claim Discount to one car at a time – not multiple – and your insurance provider may have a limit on how many years of No Claims Discount can be applied.

What happens to my No Claim Discount 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 NCD, or at least part of it.

Whether you lose your NCD 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 NCD 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, so it won’t affect your NCD 1.

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 NCD. This means you’ll pay an additional amount as part of your premium so you don’t lose your discount if you do need to make a claim.

But when you protect your NCD, 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 Claim Discount protection, so double check these before you take out your policy. 

How long does no claim bonus last?

If you’ve had a break from driving for a while, you may still be able to apply your No Claim Discount to a new policy you take out.

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 NCD is applied will be at the discretion of your insurer.

Can I build up a no claims bonus on a Multi Car policy?

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

For example, with our Multi Car 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 No Claim Discount 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 policy – as even though they might build up a NCD 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 No Claim Discount if you want to apply it to your new policy.

Most insurers will send you proof of your NCD 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 two years to use your NCD – after this, you’ll lose it altogether.

Have I earned any No Claim Discount if I’ve been driving a company car?

If you’ve been driving on a company car policy, then you don’t earn your own No Claim Discount unfortunately.

What if I’ve earned No Claim Discount on motor insurance overseas?

We’ll accept No Claim Discount if it was earned from any of the following countries: 

European Union (EU) and European Economic Area (EEA)

Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Republic of Cyprus (South), Republic of Ireland, Romania, San Marino, Slovakia, Slovenia, Spain, Sweden.

Other countries 

Andorra, Australia, Barbados, British Virgin Islands, Canada, Gibraltar, Falkland Islands, Faroe Islands, Hong Kong, Japan, Monaco, New Zealand, Republic of Korea (South), Singapore, South Africa, Switzerland, United States of America, Zimbabwe, Cayman Islands, The Republic of North Macedonia, Taiwan, United Arab Emirates, Ukraine.

We also might ask for proof of your NCD which should:

  • be in English*
  • be on official company headed paper
  • be in the main driver’s name
  • show the vehicle details
  • confirm the number of years the NCD was built up over
  • show the date the policy expired

We will accept NCD up to a maximum of 2 years after the expiry of your last policy, as long as it's not being used on another policy.

*We’ll also accept an English translation of the document, alongside the original version. But the translation must be by an authorised/sworn translator with the appropriate seal/signature of authenticity. We’ll also need contact details of the insurance company including telephone number, email address, and postal address.

What does Protected No Claim Discount (PNCD) for motor insurance give me?

Our PNCD for motor insurance is optional cover that protects your NCD from one ‘at fault’ claim each year. 

It doesn't protect the overall price of your insurance policy, but it does guarantee that your premium won't increase next year as a direct result of one claim.

You need to be 21 or over with three years or more of No Claim Discounts and have had no more than one claim in the last year to protect your NCD with us. This is the case for our Motor Insurance policy that you can find through aviva.co.uk, but other products may be different so make sure you check your policy documents so you know what your PNCD allows. 

If you don't protect your NCD, any ‘at fault’ claim would put your NCD years back at renewal. Two or more ‘at fault’ claims in one year would result in your NCD being stepped back to nil at renewal.

If you're a new customer, please see our Summary.

If you're an existing customer, for further information please refer to the documents section of MyAviva on the policy you wish to view.

If you're an existing customer, you can only add NCD protection cover at renewal. To add it, please call us on 0800 056 2192.

See our motor insurance FAQs

View our list of frequently asked questions for Aviva motor insurance products, which covers questions about No Claim Discount, changing your policy and more.

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