What Is A No Claims Bonus (NCB)

We often hear that you can get a discount on your car insurance if you have a no claims bonus, but what exactly is it?

No Claims Bonus Explained

A no claims bonus is an accruement of years when you have had car insurance but you haven’t made a claim. So if you have had car insurance for five years but had to make a claim for repairs to your vehicle due to vandalism part way through year 3, you will only have two years no claims bonus.

Discounts Available

Different insurance companies place a different value on a no claims bonus. Though it is safe to assume that a one year no claims bonus will not be anywhere near as generous as a four years no claims bonus. Some companies will offer anywhere between a 60% and 75% discount on the cost of your insurance premium if you have a no claims discount of 5 years or more.

Proof of No Claims Bonus

You will need to able to prove that you have the number of years without making a claim that you say you do to your insurance company. If you are staying with the same one, then they will have the information available. However, if you are changing insurance companies, make sure you get a no claims certificate issued by them to prove what you say or your premium will go up and some insurance companies may even cancel your cover if it is not received in time.