No Claims Discount

No-Claims Discount - Collecting your bonus and holding onto it

When you’re a young or inexperienced driver, car insurance will likely be expensive as you are yet to show your capabilities at the wheel.

Many drivers who have been on the road for some time will enjoy a no-claims discount. This allows them save a fair chunk off of your insurance premium, but it takes time to attain - and careful driving - when you first start driving.

What is a no-claims discount?

While most may already be well versed in what a no-claims discount is in general, it can be good to know how it might be affected in certain situations if you have already accrued one or more years’ worth.

Put simply, a no claims discount is applied when you have had one or more consecutive years without making a claim on your insurance. This discount is generally referred to as a no-claims bonus or NCB.

Those with at least five years’ NCB will get the best discounts, with most insurers capping the maximum discount at five years.

No Claims Discount

How can my NCB be affected?

The most common scenario is where you have had to make a claim on your insurance due to damage to your car. In this situation, some if not all of your NCB will be lost and you’ll have to build it up again. This is also the case if you’re at fault for an accident that includes another car which is not yours.

However, if you were hit by another car and it was agreed it was not your fault, your NCB may not be affected as your insurer can usually reclaim the payout from the other driver’s insurance. If a decision cannot be made on who’s fault an accident was between multiple cars, the cost may be split between insurers and your NCB could be affected.

If your car is stolen or damaged by bad weather it is more than likely that your NCB will be affected, as you’ll still have to make a claim, either for the ‘total loss’ of your stolen car or for damage caused.

Getting proof of NCB

In the event of you changing insurer, you’ll need to be able to prove that you have any NCB so it can be transferred. While some insurers may send you your proof of NCB when you cancel or just before your renewal, others may not and you’ll need to contact them and ask for it to be sent.

When you cancel a policy you’ll have two years to reuse your NCB; leave it longer than this between insurance policies and it will expire and you’ll have to start again.

Protecting your NCB

If you’re not happy about the idea of losing your NCB - who would? - then you can pay extra on your policy to have it protected.

Getting your NCB protected means that you can make a certain amount of claims before losing it, even if your insurer can’t claim back their costs. However, this doesn’t necessarily mean your premium won’t go up on renewal; insurers will still take any claims into account before applying your NCB.

NCB and named drivers

Please see our section on Named Drivers to find out more.

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