No claims bonus - how it works to give you discount

Get advice on buying your car insurance policy and how your no claims bonus works

What is a no claims bonus?

A no claims discount or no claims bonus (NCB) is a discount that can be applied to an insurance policy based on the number of consecutive years the policyholder has gone without making any claims.

If there are still no claims on your policy, you keep getting a discount. You can build up this bonus for a maximum of 15 years.

• Can I bring my bonus with me from another insurer?
• What happens if I make a claim?
• What if the accident wasn't my fault?
• What if I've been away from driving?
• What is protected no claims bonus for car insurance?
• What about MultiCar and MultiCover?
• How do I submit my no claims bonus proof?

Can I bring my bonus with me from another insurer?

Yes, you'll just need to send us the renewal notice your previous insurer sent you and your NCB proof, which they will also provide.

How much discount do I get each year?

How long do no claims bonuses last?

A no claims bonus or no claims discount is usually valid for two years after a policy comes to an end. After such time you'll need to build a new no claims bonus.

What happens if I make a claim?

It depends what the claim is for; payments for windscreen damage or emergency treatment fees won't affect it. Likewise, if the accident was the other person's fault and we recover all the money from their insurers, you won't lose your bonus.

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.

You'd still get a discount off your premium, and it wouldn't take so long to build it back up.

If you make two claims during the period you're insured for, you'd lose four years' bonus, and if you made three or more claims during the period you're insured for, you'd lose them all.

What if the accident wasn't my fault?

If it was their fault, the third party insurer pays out and we recover our costs, it won't impact on your bonus. However, this doesn't mean your policy won't be affected. Insurance is all about risk – and as part of this an insurer will look at the number of accidents you have, both fault and non-fault.

There are circumstances which could mean you lose your NCB even if the accident wasn't your fault. If, for example, you were hit by an uninsured driver, the claim would need to be made through your insurer rather than the third party's and if your bonus isn't protected you may lose some of it.

Can you keep no claims bonus without a car?

No claims discounts tend to lapse after a couple of years which is worth bearing in mind if you're returning to the road after some time away.

However, it's always worth discussing with your new insurer as, depending on how long it's been, they may be able to accept some of the bonus if you still have proof of your last policy.

What is protected no claims bonus for car insurance?

You can pay to guarantee or protect your NCB. 'Guaranteed' means a claim won't reduce your bonus but you won't get extra discount that insurance period. 'Protected' allows two claims in three years before the bonus is reduced, and, again, you won't get any discount in that period.

The difference between the Guaranteed and Protected schemes is with Protected, if you keep on making claims in consecutive insurance periods, you can lose the protection and ultimately, some of your discount too.

Where your bonus remains unaffected, in most instances a claim will lead to some increase in premium at renewal. However, our motor premium calculation will include the discount to which you are entitled.

What about MultiCar and MultiCover?

Each policyholder on the MultiCar policy builds up their own no claims bonus. If one policyholder makes a claim and loses some or all of their no claims bonus, it doesn't affect the other policyholders. If a named driver makes a claim, it will affect the policyholder’s NCB. 

MultiCover includes home insurance with your existing MultiCar Insurance. It's a great way to reduce the time you spend on the phone to an insurance agent as well as the number of policies you need to keep track of. If you make a claim on your home insurance while on a MultiCover policy it won't affect your motor no claims bonus.

How to prove you haven't made any claims

If you're a new customer and you need to submit your no claims bonus proof from your previous insurers, you can do so through our online form.