Is it worth losing no claims bonus?

Asked by: Madeline Kerluke  |  Last update: September 28, 2022
Score: 4.9/5 (51 votes)

Is it worth protecting no claims? If you have a big discount you've built up, say 50% for example, you might want to consider paying for no claims protection. This is because if you make a claim, you could lose anything you've built up already. But if you've paid for the extra, it should be protected.

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.

What happens if I lose my no claims bonus?

If you make a car insurance claim on your policy where your insurer pays out, you'll likely lose some, or all, of your no-claims bonus. If your car is damaged in a crash the other party was at fault, your insurer may be able to reclaim repair costs from their insurer. This should leave your NCB intact.

Will I lose my no claims bonus if I cancel my insurance?

While you'll get some money back or avoid paying further instalments, which will be more than you'll pay in cancellation charges, you'll lose your no claims discount (NCD) for that year if you cancel early. That said, any previous years NCD will remain.

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.

No-Claims Bonus - Things to look out for

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How long can I keep my no claims bonus without a car?

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.

Do you lose NCB if not your fault?

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.

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.

What is 65% No Claim Bonus?

65% Claim Free Privilege Life1 is earned after you've had 65% Claim Free Privilege Plus1 for three claim free periods. At this discount level, your 65% No Claim Bonus1 is protected for the life of your policy.

What is a maximum no claim discount?

A no claim bonus (also called a no claims discount, safe driver reward, no claim bonus rating scheme, or rating level) typically gives you a discount on your car insurance. This discount can be anywhere up to 60% in the first year. The discount increases each year if you don't claim, up to a maximum number of years.

How do I work out my NCD?

In most cases, you can see your no claim discount (NCD) by doing the following:
  1. Logging into your online car insurance account.
  2. Referring to your insurance certificate; many specify your no claims discount rating.
  3. Viewing your car insurer's latest renewal offer.
  4. Calling your car insurer and speaking to them directly.

How do I work out my no claims discount?

The amount of discount is calculated by reference to the number of years that you have driven a vehicle without making a claim on your car insurance. For example, if you have been driving for four years and have not made a claim on your car insurance during that time, you will have accrued four years' worth of NCB.

How long does proof of no claims last?

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.

Do I keep my no claims if someone hits me?

Even if someone hits your car and you make a claim for the damage on your insurance – it is likely that you will lose your no-claims bonus. Remember it is a 'no-claims bonus' and not a 'no-blame bonus'.

Does 1 year no claims make a difference?

How much discount will you get? All insurance companies have their own no claims discount scale, but a typical example might be: 30% discount after 1 year's claim-free insurance. 40% discount after 2 years.

How much will my insurance go up after an accident UK 2021?

In the UK, for an at-fault accident involving bodily injury, your rates could increase by as much as 20% to 40%.

Can I split my no claims between 2 cars?

But, you can request proof at any time and the insurer will supply it. Can I split my accumulated NCB across two cars? No. You can only use your exisiting NCB in one policy for one car, but you can build up a separate NCB in another car insurance policy for a second car.

Can I mirror my no claims discount?

Car insurance: Mirror NCB

If you've earned NCB on one vehicle you may be able to mirror it on a second vehicle. Admiral can sometimes mirror NCB from the first car onto the second vehicle on a MultiCar policy.

How much is 1 years no claims discount worth?

The amount of discount earned increases with each year of claim-free driving. So after one year you might get 30%, with the percentage increasing each year until you get 70% NCD after five years. Most firms offer a maximum NCD of 70%, although some offer 75% or 80%.

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.

Can you have 2 lots of no claims bonus?

Unfortunately you cannot use your no claims discount twice. You can only use your no claims discount on one vehicle at any one time.

Why can't I use no claims bonus on two cars?

In fact, your multi-car policy is actually individual policies for each of your vehicles, they're just all provided by the same insurer and renewed at the same time. Each vehicle is unique. This is why your no claims bonus wouldn't automatically apply to other vehicles under the policy.

What is the cheapest way to insure two cars?

Multi-car insurance covers more than one vehicle under the same policy. It offers the same features as a single-car policy, but gives you a discount for the second vehicle. This makes it one of the cheaper ways to insure more than one car.

Can I transfer my no claims bonus to another car?

Can I Transfer my No Claims Bonus? Yes. After a successful year without a claim with the same insurer, it is usually possible to transfer your NCB from one vehicle to another and from one insurer to another. You will need proof of your no claims to do this, which will usually be issued by your insurer upon request.

Can you be the main driver on 2 cars?

The main and named driver have the same level of cover on the car. But a named driver could be the main driver on another vehicle. You can be the main driver of more than one car. But insurance companies will often question it... to check for fronting.