No claim bonus on car insurance policy

The no-claim bonus refers to the premium bonus offered by the insurance companies if you don’t make a single quote during the insurance policy term. Individuals who manage their cars are more likely to receive prizes. If you provide evidence in the form of a recent notice or letter, the exemption will be transferred from one company to another. Also, the amount of deduction you can get depends on the insurance claims you made in that particular year.

No Claim Bonus how it works:

Insurers usually call this a discount and not a bonus. If you do not claim in the specified year and have car insurance, you are entitled to a deduction on the premium for the following year. So if you spend more years without reporting the claim, the exemption will be higher. However, if you have a car insurance claim, you risk losing part or all of the exemption.

Some insurance companies offer discounts for unclaimed driving for more than eight years; The maximum duration should be five years. According to the British Insurance Brokers Association, you get a 30% premium with a 40% guarantee to drive for a second year when you complete the entire year without any claims. After spending many years without making any claims, you will get 70% to 75% discounts. Read more about How Life Insurance Helps Build Generational Wealth Insurance.

How you can protect your no-claim bonus:

Are you looking forward to protecting your NCB? One of the discouraging things is losing your NCB after spending a lot of time building it. No claim bonus protection is an additional service that you can easily purchase using your insurance policy. It is used when blocking multiple claims affecting your NCB. Apart from that, the protection can help you save some money after making a claim. Even if you pay for the security, it depends on the deduction you are willing to lose after reporting the claim.
Insurers are not easy to spot – but they should show their customers an average discount each year without any claims. So it gives you a starting point in purchasing no-claim bonus protection.

How your NCB will be affected if you make a claim:

If your car is damaged due to someone’s negligence, your insurance company can recover the cost of repairs from that person’s insurance. So your NCB will not be affected. However, if the insurance companies are not responsible for the collision, the repair cost will be split in two, and your NCB and driver’s NCB will be affected. Some conditions that cannot affect your NCB are if your car is stolen or damaged due to bad weather.
What can you claim without affecting the No Claim Bonus?

Some claims may not adversely affect your NCB. If you are hoping to get a discount, you need to be aware of such situations. One of them is when another driver causes an accident.
Also, if you are dealing with compressive car insurance, claiming a windscreen cover may not affect your car insurance. However, you should always contact your insurance company when you feel that you do not understand.

Can you transfer your NCB from abroad?

If you try to make the best NCB overseas, it will be possible to take it to the UK shores. However, it depends on the insurance quotes as some companies choose the countries that accept the exemption.

If you created your NCB in an unapproved country, unfortunately, you will not be able to transfer it. You can contact your company and see what they have to offer.

What to do if you change your car or policy?

After purchasing a new car, you can transfer the no claim bonus to your new vehicle. However, if you switch from one insurance company to another before the end of the year, you will not receive a discount for that particular year. If you wait until the end of the year, the insurance company will provide you with bonus proof at the end of the policy term so that you can send it to the next provider.

What if you want to sell your car and keep your NCB?

Once you sell your car, it means you will not be driving for a long time. However, some insurance companies will choose to honor your bonus if you cancel your insurance and look for another policy. But it all depends on the time frame. Finding a company that will keep your no-claim bonus isn’t accessible if you do not get an insurance policy for two years. Thus the chances of losing the no claim bonus are very high.

Once you are in such a situation, you should contact the insurance company that provided you with the last cover. The company can reduce your no-claim bonus, and it is better than starting from the first step.


When purchasing a new car, you should know the no-claim bonus. It may be helpful to use your vehicle prudently. The above article will help you learn how it works and its conditions.

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