No Claim Bonus: Everything You Need To Know
January 27, 2025
Categories:
A no claim bonus (NCB) is a valuable incentive that can significantly lower your car insurance premiums. It’s a reward given by insurers to drivers who maintain a claim-free record for a certain period. Whether you’re new to car insurance or looking to maximise your savings, understanding how a no claim bonus works is essential.
In this guide, we’ll explore what a no claim bonus is, how it works, and how you can use it to reduce your insurance costs.
A no claim bonus is a discount offered by car insurance providers to policyholders who have not made any claims during their policy term. The longer you maintain a claim-free record, the higher your discount will be.
For instance, after one year of no claims, you might receive a 30% discount on your premium. This percentage typically increases annually, reaching up to 70–75% after five or more claim-free years.
The no claim bonus system is straightforward but comes with specific rules and conditions.
You earn your NCB by completing a policy term (usually one year) without filing a claim. Every consecutive year without a claim increases your discount percentage.
Your no claim bonus can be affected by:
The discount amount varies by insurer and is typically expressed as a percentage. The higher your NCB, the larger the reduction on your premium.
Knowing your current NCB status is important when renewing or switching insurance providers.
Your no claim bonus certificate is proof of your claim-free history. Request it from your insurer, either online or by contacting their customer service.
When you receive your policy documents, check the no claim bonus section to confirm the discount applied to your premium.
Yes, you can transfer your NCB to a new insurance provider. This is especially useful if you’re switching insurers for better rates or coverage. And remember, it’s okay to have two sets of no claim bonus.
If you’re switching insurers or need proof of your NCB, you’ll need to request a certificate.
To get your no claim bonus certificate, you’ll need to provide your policy details and a request to your current insurer. Some providers issue this automatically upon policy cancellation.
It’s best to request your certificate immediately after your policy ends or when switching insurers. Having it on hand ensures a smooth transition.
The certificate includes:
Your NCB is a valuable tool for reducing premiums. Here’s how to make the most of it:
The savings from an NCB can be significant. For example, five claim-free years could reduce your premium by up to 70%.
Yes, filing a claim can reduce or eliminate your NCB. Some policies offer no-claims protection, allowing you to retain your NCB after one or two claims within a specified period.
A no claim bonus is a fantastic way to reward safe driving while keeping your insurance premiums low. By understanding how it works, requesting your NCB certificate when needed, and taking steps to protect it, you can maximise your savings over time.
With a little effort and careful planning, you can enjoy the benefits of a no claim bonus while ensuring peace of mind on the road. For more assistance with accident claims, connect with the top car accident management company for reliable support.
