What is a no claims bonus and how does it work?
A no claims bonus (NCB) is a discount you earn for each year you don't make a claim. The more claim-free years you build, the larger the discount on your premium.
How your no claims bonus builds and is lost
Each full year you go without claiming adds one year to your no claims bonus, often capped at around five years or more depending on the insurer. A higher NCB can mean a substantial discount.
A fault claim — or one where your insurer can't recover their costs — usually reduces your NCB rather than wiping it entirely. Key points:
- NCB is personal to you, not the car
- You can usually transfer it to a new insurer with proof
- Protecting your NCB limits how much a claim reduces it
Even protected NCB doesn't freeze your premium — the underlying price can still rise after a claim.
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Can I use my no claims bonus on two cars at once?
Generally no. Most insurers let you use a given NCB on only one policy at a time, though some offer a separate introductory discount for a second car.
How do I prove my no claims bonus?
Your previous insurer issues proof at renewal or on cancellation, usually as a letter or document stating your number of claim-free years.
Does a no claims bonus expire?
Yes, if you have a gap without insurance. Most insurers accept NCB earned within the last two years, but rules vary, so check before letting cover lapse.