What is a no claims bonus?
Asked by: Charlotte Klein | Last update: November 18, 2025Score: 4.1/5 (51 votes)
How does no claims bonus work?
If you don't claim on your car insurance, your insurer will give you a no-claims bonus each year – which is a future discount on your next policy. But if you need to claim, you could lose any discount you've built up, unless you pay to protect it.
How much is a 1 year no claims bonus?
No claims discounts vary from insurer to insurer, but they can be as much as 30% for one claim-free year and 60% for five claim-free years. Some insurers offer protected discount policies which allow customers to make a certain number of claims over a specified period of time without affecting their no claims discount.
What does 65% no claim bonus mean?
The No Claim Bonus levels are:
65% Claim Free Privilege Life status is achieved once you have held Claim Free Privilege Plus status for 3 claim free periods. Claim Free Privilege Life gives you No Claim Bonus Protection For Life.
What is no claim bonus with example?
NCB comes into effect when you do not raise a claim against your motor insurance policy during the policy term. In simple words, you add 20-50% No Claim Bonus to your policy for every claim-free year. This benefit then gets you a discount on the renewal premium.
No-Claims Bonus - Things to look out for
Is no claim bonus worth it?
The NCB percentage directly influences the saving offered on your car insurance premium. As the NCB percentage increases with each claim-free year, the saving on your premium also increases. For instance, a policyholder with a 50% NCB is eligible for a 50% saving on the premium, resulting in substantial savings.
Do I lose no claims bonus if someone hits me?
A common question searched online after an accident is 'do I lose my no claims if not my fault' and the unfortunate answer to this question is… Yes, you may lose it. However, you may be able to avoid losing it. A person's no claims bonus is something that takes years to build up but only a moment to lose.
How many times can you use your no-claims bonus?
Usually, no. You can only use your existing NCB in one policy for one car, but you can build up a separate NCB on another car insurance policy for a second car. But some insurers let you mirror your NCB from your first car to your second.
How do I prove my no claims discount?
You can find out how many years of no claims bonus you've accumulated on your car insurance renewal paperwork, on your cancellation letter, or a letter from your provider confirming your no-claims discount. To be valid, it must be dated within two years of starting your new car insurance policy.
What is the highest no-claim bonus?
Once you've had motor insurance for a year or more without making a claim, you should be eligible for a 'no claim discount' or 'no claim bonus. ' This usually amounts to a reduction of 30% on your premium in the first year, rising in annual steps to a maximum of 60 or 65%.
Is it worth protecting your no-claims bonus?
No-claims bonus protection can offer peace of mind if you're worried about potential accidents or claims. This can be valuable when you've built up a healthy discount over the years. However, it's worth noting that no-claims bonus protection costs extra.
How do I check my NCD?
How Do I Check My No-Claims Discount (NCD) in Singapore? There are two simple ways to find out your existing NCD. The first is to look at your current car insurance policy schedule - It shows your current NCD entitlement. The second is to ask your current car insurance company directly.
How many claims are allowed in car insurance?
In any case, two at-fault claims within three years are grounds for non-renewal with many insurance companies. Since your driving record follows you, your next insurance company will consider you high risk as well, and your insurance rates will reflect it. unless you file more than three within three years.
Can I withdraw no claim bonus?
If you let your policy lapse, regardless of how many claim-free years you have and how many premium discounts you are entitled to under your car insurance policy, your car insurer will withdraw the No Claim Bonus.
Do you lose your no claims if you cancel your insurance?
Insurers usually include proof of your no-claims in your cancellation notice. If you can't find it, get in touch with your insurer for a copy. Your proof of no claims is usually only valid for two years After this time you'll lose the bonus and have to start again at zero.
How do I calculate my no-claims bonus?
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%.
How much does car insurance go down after 1 year no claims?
In many cases, your insurance will go down by 5-20% in the first year of no claim, depending on your insurer. After the first year, this discount increases each year, usually by 5%, if you don't make a claim. But it only increases up to a maximum discount, usually 50-60%, and a number of years — usually 5-6 years.
Do you automatically get no claims discount?
Typically, you earn one year of no claim discount for each claim-free year of driving. For example, if you keep a claim-free record for five years, you can enjoy a cumulative five-year no claims discount on the base cost of your car insurance (not including extras).
Can you make a claim without proof?
You'll need to include copies of all paperwork that will help your claim, including receipts or medical certificates. You should also keep copies of the originals in case your claim is queried or refused. Your insurer may ask if you have other insurance that may cover the claim.
Do insurance companies check no claims bonus?
When you renew your insurance and you want to move to a new motor insurance provider, the NCD database enables the new insurer to verify your no claims discount directly from the database. Details provided by the database include the number of discount years and whether these are protected, guaranteed or standard.
Do I lose no claims if it wasn't my fault?
When you make a non-fault claim, your no-claims bonus could be affected while your insurance provider investigates who's at fault. However, if they confirm that you're not liable and they're able to fully recover their losses from the other provider, your full no-claims bonus should be reinstated.
Who gets no claims bonus, main driver or policyholder?
If you are a named driver of a car, not the main driver, you usually won't be able to build up a no-claims discount. However, if you then go on to take out your own policy with the same insurer, you may benefit from a discount.
Do I call the other person's insurance if they hit me?
You do likely have to talk to your own insurance company as they will need your account of what happened. There is, however, times when speaking to the other driver's insurance company will benefit you and will depend heavily on the specifics of your case.
Why does insurance go up when it's not your fault?
If your driving record is laden with traffic violations or accidents, you might see an increase in your insurance rates after a no-fault claim, as insurance providers perceive drivers with a history of accidents or violations as high-risk and impose higher rates to mitigate the associated risk.
Can I repair my own car after filing a claim?
You might wish to perform the repairs yourself if the damage is not too severe and you are reasonably handy. You are permitted to try to repair the damage yourself if your car is free of any liens and you own it outright. This is not advised, though, for any damage other than tiny ones.