No Claims Bonus (NCB) and No Claims Discount (NCD)

What Is NCB / NCD?

No claims bonus (NCB) is also known as no claims discount (NCD). For every year of driving without making an insurance claim, you are awarded one years no claims bonus. So if, for example, you have been driving for four years with your own insurance policy and haven't made a claim, then you will have four years no claims bonus.

How Does It Affect Car Insurance?

By acquiring NCB you are proving that you are a relatively safe and low risk driver. The more NCB you have, the cheaper your insurance quote will be. Some insurance companies class 9 years NCB as the maximum, so anything over that may be considered irrelevant.

What Is Protected No Claims?

Protected no claims is an additional chargeable option available when purchasing car insurance. It is often only available to drivers with a minimum of 3 or 4 years NCB. If protected no claims is taken out, in the event of a claim the drivers NCB will remain in-tact. Most insurers allow 1 or 2 claims per year with a protected no claims policy - although this is worth checking with the individual insurance company. It is worth noting that although your NCB will not be affected, your renewal premium may still increase if you make a claim.

What Happens If I Crash Without Protected No Claims?

Many insurers have some type of scheme in which you will lose a certain amount of your NCB, although not necessarily all of it. For example, if you have 5 years no claims bonus and you make a claim with your insurer, you may lose 2 or 3 years no claims bonus at renewal time. If you only have 1 or 2 years NCB, then in the event of a claim you will probably lose all of it.

Is Pass Plus The Same As No Claims Bonus?

No. Pass plus is an extra driving course you can take after passing your driving test. Some insurance companies will treat a pass plus certificate as equivalent to one years no claims bonus, although not all of them do.

Can I build No Claims As A Named Driver?

Some insurance companies will count named driver experience as equivalent to NCB. This isn't offered by all car insurance companies so please check with your insurer.

How Long Is No Claims Bonus Valid For?

Most insurers require that your NCB certificate must have been issued in the last 2 to 3 years. If you have 5 years no claims bonus, but then don't drive for 3 or 4 years,  it is likely you won't have any NCB when you start driving again.

Can People With Company Cars Earn No Claims Bonus?

Some insurers will allow claim-free years driving a company car to act as a no claims bonus. Often you will need to prove via a letter from your employer that you haven't had an accident and then your insurance company will count this as no claims bonus.