What is meant by no claim bonus?
Asked by: Vernie O'Kon | Last update: December 22, 2025Score: 4.3/5 (57 votes)
How does no claim bonus work?
No Claim Bonus? NCB? All these terms refer to the same thing – a discount your insurer can apply to the price of your car insurance policy based on previous years where you haven't claimed on your policy or been in an accident where you were at fault.
Is it worth paying for a no-claims bonus?
The greater your no claims bonus, the lower the premiums you are likely pay now and in the future. Just one claim can make a significant difference to your premiums which will often cost you more in the long run - that is why most people opt to get minor damage and repairs sorted themselves.
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 happens if I don't protect my no-claims bonus?
Should I protect my no claims bonus? 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.
No-Claims Bonus - Things to look out for
How long are no claims valid?
Your no claim discount will remain valid for up to two years after your car insurance expires, provided it is not being used on another policy. If you don't drive or renew your insurance within this two-year period, you risk losing your NCD and may need to start building it up again once you resume driving.
How long can you have a gap in car insurance?
What is a car insurance lapse grace period? Your car insurance policy won't be cancelled immediately because you miss a payment. Auto insurance companies are required by state law to provide notice before cancelling your policy. Depending on the state, you'll usually have between 10 and 20 days.
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.
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.
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 keep my no claims bonus as a named driver?
No claims bonuses only apply to the "main driver". That means if you're married (or living with someone) and you share a car, you can't share your no claims bonus. Only one of you can be the main driver. They're usually the owner of the car, or its 'registered keeper', but not always.
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.
How can you lose no claims bonus?
If you have an accident and are forced to make a claim, you'll lose part or all of your no claims-discount. Even if you claim for an accident where you're not to blame, it could still affect your no-claims discount – unless you can reclaim all costs from the person at fault.
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.
How good is no claims bonus?
The more years of no claims you have, the bigger the discount on future policies will be and the lower the amount you will pay. If you have many years' NCD you can get discounts up to 60% from some insurers.
How do I calculate my no claim bonus?
The amount of NCB you get depends on the number of years you've been driving without making a claim on your insurance. It also varies by insurer. For example, your insurer could offer a 30% discount for your first year of claim-free driving, and then 10% for each additional year after that.
How long do no claims last?
How long does a no-claims bonus last? Many no-claims discounts last for two years after your car insurance policy ends. If you don't renew your policy within two years, you may lose the no-claims you've earned.
How do I know 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.
What is the maximum no-claims 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%.
Do you get money from no-fault insurance?
So let's start with a basic definition: no-fault insurance, sometimes referred to as personal injury protection insurance (PIP), can help cover you and your passengers' medical expenses and loss of income in the event of a covered accident, regardless of who is found at fault.
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 pay excess if I am not at fault?
You pay the excess in the event of any claim made on your insurance policy regardless of who is to blame. However, if it's proved the accident was the other person's fault and the full cost is recovered from their insurer, you may be able to recover this amount.
What happens if you don't renew your car insurance?
If you don't renew or replace your car insurance policy by the time your current policy expires, your insurance will lapse and you'll be left uninsured. Driving without insurance is illegal in most states and can result in a fine or license suspension if you're pulled over.
How long can you go without car insurance?
It is a crime to drive almost anywhere without car insurance coverage, even for a minute or just down the street. So, how long can you be without car insurance? If you're driving, you can't. Anytime you get behind the wheel as a licensed driver, you need insurance coverage or you'll risk incurring major consequences.
Is it too late to get gap insurance after accident?
If you get into a minor fender bender and you're within the eligibility time frame, you can probably still get gap insurance. However, you can't get gap insurance after an accident that totals your vehicle. At that point, you are stuck paying off your auto loan balance out-of-pocket.