Do I lose my NCB if I don't claim?
Asked by: Trent Hahn | Last update: September 19, 2022Score: 4.9/5 (72 votes)
A no claims bonus (NCB), or more correctly a no claims discount, is awarded if you don't claim in the latest policy year. Even if you have an accident that wasn't your fault – you're hit by an uninsured driver, or your car gets stolen – you could lose your NCB, and your premium could even go up at renewal.
What happens if you have no claim bonus?
It's called a No Claim Bonus (NCB). NCB is essentially a discount on your insurance premium that you can avail when you renew your policy. If you do not make any claims for a few years consecutively, you can accumulate up to 50% discount on premiums!
How long before I lose my no claims bonus?
That depends on your insurance provider and how long it's been since you last had cover. Many insurance providers will say a no-claims discount is invalid if there's a break in your car insurance of two years or more. But other providers may go to three years.
Can you lose NCD?
If your insurance provider considers the industry standard of five years to be the maximum NCD, you'll be left with three years' NCD. And if you make a second claim, you'll lose it all.
How do you lose your no claims bonus?
Your no claims bonus won't last forever and it will usually expire two years after you end a policy. So, if you don't drive for two years and you're not insured, your bonus will usually disappear and if you do buy a new policy you'll need to start your bonus up again from scratch.
No-Claims Bonus - Things to look out for
Do I lose my no claims bonus if I cancel my car insurance?
No claims discount (NCD) is awarded for each full year of insurance, so if you cancel mid-way through the year your no claims discount will not increase.
Do insurance companies check NCB?
Do insurance companies ask for proof of no-claims bonus? Yes. If you're switching to a new car insurance provider and tell them you have an existing no-claims bonus in your application, they'll probably need to see some proof.
Is 9 years no-claims the maximum?
Proof of no-claims when your no-claims bonus is higher than your new insurer's maximum. You may go to a new insurer with a higher amount of no-claims bonus than they will accept – for example, if you have 9 years no-claims bonus, but the maximum they apply is 4.
How long does NCD last without insurance?
Your no-claims bonus (usually) lasts for 2 years
If you haven't had your own car insurance for a little while (maybe you sold your car, stopped driving or moved overseas), most car insurance companies will honour your old no-claims discount when you take out new cover.
Is it worth protecting no claims bonus?
If you have five years' no claims discount, it will significantly cut the cost of your car insurance. You could lose all that for just one accident. You would also normally lose your discount for being in an accident with an uninsured driver, if you had to make a claim on your own insurance.
Can you protect 1 years no claims bonus?
Protecting your no claim bonus
Once you've built up a few years' no claim bonus, you can “protect” it with an optional extra fee. This means your no claim bonus will be safe-guarded, even if you make an at-fault claim.
Do you lose your NCB after 2 years?
Can your No Claims Bonus expire? The expiry period for an unused no claims bonus is two years after you've cancelled your last policy. So if you have taken a break from driving but you don't want to lose your NCB, you'll have to take out a new policy within two years to carry on where you left off.
Do non fault claims affect premium?
Unfortunately, yes it does. In many cases, your premiums will go up after you've declared a non-fault claim to your insurance provider. This is because certain circumstances surrounding the accident, even if it wasn't your fault, may lead to more accidents in the future.
What happens if you don't declare an accident?
What happens if I fail to report an accident to my insurers? Failure to report an accident can lead to your policy being declared void by your insurers which could result in you being uninsured in respect of vehicle damage in the event of a later accident.
Is it worth protecting no claims discount?
A no claims discount (NCD) can play an important part in lowering your annual insurance premium. If you do not make a claim on your car insurance, then your insurer is not required to pay out. By default, this implies you are a safer driver and therefore cheaper to cover.
How do I check my NCD status?
In order to check your NCD, call your insurers and ask them to query the database for you. Also please note- some insurers have NCD protectors or NCD for life (e.g., FWD Insurance Singapore).
Can I transfer my NCD to another car?
To transfer the NCD from an old car to the new car, you will need to go to insurer's branch and request them to transfer NCD. You will have to pay prorated non-NCD value of the old car. That is OK because it will be lower than paying the full insurance price of the new car.
How does NCD protector work?
What is an NCD Protector? A No Claim Discount Protector protects your NCD and allows you to make a claim under your policy without affecting your NCD. Without it, your NCD will be reduced by 30% when you make a claim under your policy.
Can I keep my no claims bonus if I don't have a car?
Will my no claims keep running if I'm a named driver? The good news is, many insurance companies now offer named drivers their own no claims bonus – even if they're not the main driver or policyholder. As such, you'll often be able to keep your no claim's bonus running, even if you don't have your own policy.
How long does NCD last without insurance?
Your no-claims bonus (usually) lasts for 2 years
If you haven't had your own car insurance for a little while (maybe you sold your car, stopped driving or moved overseas), most car insurance companies will honour your old no-claims discount when you take out new cover.
Is 9 years no claims the maximum?
Proof of no-claims when your no-claims bonus is higher than your new insurer's maximum. You may go to a new insurer with a higher amount of no-claims bonus than they will accept – for example, if you have 9 years no-claims bonus, but the maximum they apply is 4.
What happens to NCD after selling car?
Cars will come and go. But your NCD is here to stay. If you didn't know, your car insurance NCD is attached to your name, not your car. So if you sell off your old car, you can still keep your NCD rate for your brand new ride.
What happen to my NCD if I sell my car?
If you sell your old vehicle and decide to purchase a new one, the NCD from the old vehicle can be transferred to the new vehicle. If, however, you do not acquire a new vehicle and your NCD remains unused after one year, it will be reversed .
Can NCB be used on 2 cars?
Unfortunately, you can only use one set of no claim discount on one vehicle at any time. To earn multiple sets of no claim discount you need to insure multiple vehicles at the same time.
How many years no claims do I have?
Your proof of NCB is often only valid for two years. Therefore, after the two years is up, you will have to start from the beginning when you decide to take up driving again. However, if you are wondering how to keep your no claims bonus without a car, you can protect your discount by paying for NCB protection.