Your guide to No Claims Bonus (NCB)
What is a No Claims Bonus?
No Claims Bonus (also known as a No Claims Discount) refers to the number of years you have had a policy in your own name without making a claim. The confirmation of your entitlement will usually appear in your renewal invitation, or you can ask your insurance provider to send it to you.
No Claims Bonus is earned on each vehicle you own. Whilst it can be transferred to an alternative car, it cannot be used for multiple vehicles at the same time.
How is my No Claims Bonus affected after an accident?
If your policy is due for renewal and you have made a claim on your car insurance policy where you were at fault or your insurer was unable to recover all costs from another party, your No Claims Bonus may be reduced and your premium may increase. However, you can usually opt to protect your NCB to save yourself money at renewal.
How do I protect my No Claims Bonus?
If you have accumulated four years or more No Claims Bonus, you can choose to protect it. Protecting your No Claims Bonus means that in the event of a claim your No Claims will be retained at the same level at renewal, even if you are at fault. There may be a limit to the number of claims you're able to make while protecting your No Claims Bonus, and each insurer will have their own terms and conditions. Read your policy documents to find out what’s covered.
Remember, No Claims Bonus protection cannot be added as a mid-year adjustment - it must be included when the policy begins (or renews), or within the first two weeks of the policy start date.
All insurers will also have eligibility rules, which means that not every insurer will offer the protection to all drivers. For example, some insurers won't offer protected No Claims Bonus if there have been previous claims on a policy.
Why does No Claims Bonus have to be earned in the last two years?
If your No Claims Bonus hasn’t been in use on a policy in your own name within the last two years, it may become invalid. This means that if you have not had a policy in your name within the last two years, you will need to enter ‘0 years’ no claims when you get a quote.
Please note that for many insurers, maximum No Claims Bonus level is 9 years, so it will automatically be displayed as such on your renewal notice. Discount is also commonly capped between five and nine years.