What happens if you put the wrong NCB?

Asked by: Enrique Simonis  |  Last update: March 10, 2023
Score: 4.2/5 (19 votes)

In case of an incorrect declaration of your NCB, your insurance provider could reject your car insurance claim altogether. That means that if you declare the wrong NCB while getting insurance, it's as good as having no cover.

Can you have more than one NCB?

Technically, you can't use the same NCB on two cars at the same time. So if you're getting a 40% NCB discount on one car, you can't automatically use that discount on a second car. You can build up a separate no-claims discount on a second car. But you have to do it from scratch.

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.

How many years NCB do you lose?

Even if you do have to claim for an accident that was your fault, you could still keep some of your NCB. If you make one claim during your insurance period, you'll lose two years of the bonus. So, if you have five or more years NCB, it will reduce to three years at renewal.

Do I lose my NCB if I'm not at fault?

When you make a claim on your policy you'll usually lose some or all of your NCB if your insurer has to pay out – even if it's not your fault.

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Can I check my NCD online?

Can I check my no-claims discount online? You may be able to log into your insurance provider's website and view details of your insurance policy, including how many years of no-claims you have accumulated. If not, you should be able to contact your insurer directly and ask for details.

Does your no claims get affected 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'.

Can you lie about no claims bonus?

Not only is it illegal, it also means you're not earning your No Claims Discount, which can represent HUGE savings in the long run.

Can I add no claims bonus later?

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.

How do I stop losing my no claims bonus?

If you're a named driver as well as having your own insurance, and you make a claim as a named driver, you won't usually lose your no-claims bonus. Most of the time it affects the policyholder.

Is 9 years no claims the maximum?

Our maximum No Claims Bonus (also known as No Claims Discount) level is 9 years, so it will automatically be displayed as such on your renewal notice.

Will I lose my no claims bonus if I sell my car?

Although your bonus is attributed to a specific policy, it can be transferred to another car if you change vehicles. If you switch insurers before the year is up, however, you won't get the NCB for that year. The same is also true if you sell your car and wait for a period of time before finding a replacement.

What happens if you use no claims bonus on 2 cars?

Unfortunately you cannot use your no claims discount twice. You can only use your no claims discount on one vehicle at any one time. However, you will be able to start earning another no claim discount if you take out a policy on a second car.

Can I transfer my no claims bonus to another insurer?

You can usually transfer a no claims bonus if you move to a new insurer or buy a new car. You're unlikely to stay with the same insurer for a long time, as switching insurers is usually the best way to save money on your car insurance, but you don't want to lose out on any discount you've built up when you do switch.

How do I check my NCB?

You can check the applicable NCB by referring to the NCB slabs. During the online car insurance renewal process, the applicable NCB will be mentioned on the webpage. The NCB calculation will also be mentioned in your policy document post-policy purchase.

What is the maximum no claims bonus?

Each insurer's no-claims bonus scheme is different - from the size of discounts to the number of claims-free years it takes to achieve them. Maximum discounts range from around 40% to 80%, while the number of claims-free years you need before you're at the top of the scale ranges from around five to 15 years.

How do I prove no claims?

There are three main forms of proof:
  1. The renewal invite from your current or previous insurer will state the number of years you've enjoyed a no claims bonus.
  2. A cancellation letter from your previous insurer, as long as it states your no claim bonus.
  3. A letter from your previous insurer confirming your no claims bonus.

What is 1 year no claims discount?

A no claim discount is a reduction in the cost of your car insurance if you don't make a claim. You usually earn one year of no claim discount for every claim-free year of motoring. So, if you don't make a claim for five years, you'll have five years of no claim discount applied to the basic cost of your car insurance.

What happens if you get caught lying to insurance?

If you have been in caught lying to your insurer the consequences include increased premiums, denied claims, your policy being cancelled, being denied future insurance, and even criminal charges.

Do insurers check claims?

Most car, home and travel-insurance providers submit information to CUE, which typically stores details of insurance claims for six years. Insurance providers use CUE to calculate the cost of your premium, based on your claims history, so always be accurate and honest about any past claims when you buy car insurance.

What happens if you lie on an insurance quote?

The consequences include losing your policy, fines, or worse

Rates are set using a range of factors other than one's driving record. People often are asked, for instance, to provide their credit history, the average number of miles they drive, and their vehicle's year, make, and model.

How does a 50/50 Claim affect no claims?

As each party takes equal blame for the accident, both are entitled to claim compensation for any damages and personal injury they may have suffered. How a 50/50 claim works is that when any damages are awarded to either party, you will only receive 50% of the amount awarded as you will be liable for the other 50%.

How long is NCD valid for?

Your no claim discount (NCD) will be valid for 2 years after the expiration of your last policy, provided it is not being used on another policy.

Can you protect 3 years no claims bonus?

It depends. Some insurance providers won't allow you to protect your NCD if you've earned less than four years' discount. But if you have the right number of years, you can protect it by paying a fee on top of the cost of your car insurance – these can vary a lot, so it's worth shopping around.

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.