What is No Claims Bonus (NCB)?
No Claims Bonus (NCB) is sometimes called No Claims Discount and is one of the magic words for any car owner on the hunt for insurance.
That’s because NCB means money saved and that’s the name of the game for most people when looking for car insurance.
Getting No Claims Bonus
Getting NCB is fairly straightforward; it just requires you not to make a claim on your car insurance.
For most people that’s easy enough and as each year of being insured and incident free passes, your NCB grows and so does the amount of money you save.
No Claims Bonus and types of cover
It doesn’t matter what type of insurance cover or policy you have, you will be able to build up your NCB for every year you are claim-free whether you have a Comprehensive, Third Party Fire and Theft or Third Party Only policy.
How can I lose my No Claims Bonus?
You will lose your NCB if you make a claim on your car insurance for an accident that was your fault. When your insurance provider has to pay out, your no claims bonus is typically reduced by two years.
If you are in an accident that wasn’t your fault, you should not lose your NCB, because your insurance provider will try to recover the costs from the driver at fault.
If you’re unfortunate enough to be involved in an incident with an uninsured motorist, then you could lose your NCB – it depends on your insurer and their conditions.
If your car is stolen, vandalised or damaged and your insurance provider can’t recoup their costs, your NCD is also likely be affected.
Protecting your No Claims Bonus
Most insurers will give you the option to protect your NCB. This means that if you were forced to make a claim after an incident involving an uninsured motorist, or if your car is damaged by fire or stolen, your NCB will be protected. This will be an additional fee on top of your insurance premium.
It is worth noting that protecting your NCB may not stop your premium rising next year, if you do make a claim this year, as your claims history will be considered when working out the cost of your premium.
Transferring your No Claims Bonus
You can transfer your NCB between insurers and from one car to the next. You will need to provide proof of your existing NCB.
How many years No Claims Bonus can I get?
There is no official expiry date on NCB, but insurers will not normally accept NCB collected more than two years ago. If you take a break from driving, you’ll probably need to start a new policy within 2 years of your last policy, to carry on where you left off regards your NCB.
As a general rule, a full no claims bonus is 5 years worth of claim-free driving, which should give you the maximum discount available. Insurers will generally only go up to five years though, so anything more will not normally get you any additional discount.
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