What is the benefit of no claim bonus?

Benefits of NCB A no claim bonus allows you to save between 20 to 50\% on your insurance premiums depending on the number of years you go without making an insurance claim. A no claim bonus is a reward for the owner for responsible ownership.

What does no claims bonus mean in insurance?

No Claims Discount
A No Claims Bonus (NCB) – often referred to as a No Claims Discount – is a discount which can be applied to the cost of your car insurance. The amount of discount is calculated by reference to the number of years that you have driven a vehicle without making a claim on your car insurance.

How do you get no claims bonus on a car?

How to Transfer NCB to New Car Insurance?

1. Contact your old motor insurance provider.
2. Request for NCB transfer and submit all the required documents.
3. The insurance company will issue the NCB Certificate.
4. Submit the NCB Certificate to the new insurance company.
5. The new insurance insurer will transfer the NCB.

Does no claims bonus make insurance cheaper?

After driving for a full year without making a claim on your car insurance policy you earn a no claims bonus and receive a discount on your premium at renewal. No claims discounts are measured in years, so the more consecutive years you drive without claiming, the larger your savings each time you renew.

How much discount does no claims bonus give?

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\%.

Is no claims bonus on the car or person?

No claims discounts are designed for motorists with their own car insurance policies, on which they are named as the main driver. So if you are a named driver on someone else’s policy, you may find you are unable to build up your own bonus.

What happens if I don’t protect my no claims bonus?

If you buy protection for your no claims discount, this will add an extra cost to your premium. But if you have an accident without no claims protection in place, you will lose your discount and end up paying more in future anyway.

Can I transfer my no claims bonus to another car?

You can usually transfer your no-claims bonus to another car. But if you switch insurers before the year is up, you won’t get the NCB for that year. Insurers should provide proof of your bonus at the end of your policy term. You can pass this on to your next provider when you switch.

Is 9 years the maximum no claims bonus?

If you change insurer and you have a claim, your insurer may decide to “step-back” your no-claims bonus. This means they will reduce your no-claims bonus by a set amount of years. For example, you may have had 9 years no-claims, but your new insurer’s maximum is 4 years.

Does no claims bonus apply to one car?

Your No Claims Discount is valid for one vehicle only. You may have earned it as a safe driver of many cars, but you can only apply your No Claims Discount to one vehicle at any one time.