Is it worth keeping no claims bonus?

If you have five years’ no claims discount, it will significantly cut the cost of your car insurance. You could lose all that for just one accident. By protecting your no claims discount, you’ll be locking in that discount. You’ll continue to pay less on your premium even if you have an accident.

How does car insurance no claims work?

A no claim discount is a reduction in the cost of your car insurance if you don’t make a claim. You usually earn one year of no claim discount for every claim-free year of motoring. So, if you don’t make a claim for five years, you’ll have five years of no claim discount applied to the basic cost of your car insurance.

How do I work out my no claims bonus?

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. For example, if you have been driving for four years and have not made a claim on your car insurance during that time, you will have accrued four years’ worth of NCB.

Do I lose my no claims bonus if someone hits me?

Can I protect my no claims bonus? Many insurers offer NCB protection for a small fee. This means that if you make a claim for something like damage caused by a storm, if your car is stolen, or hit by an uninsured driver then you won’t lose your NCB.

What happens to no claims if I stop driving?

The expiry period for an unused no claims bonus is two years after you’ve cancelled your last policy. So if you have taken a break from driving but you don’t want to lose your NCB, you’ll have to take out a new policy within two years to carry on where you left off.

What does no claims bonus mean?

no claims discount
Also known as a no claims discount, a no claims bonus is a special discount most insurers offer to drivers who go a certain amount of time without claiming on their policy. Motorists who make no claims are the perfect customers for insurance companies, as they cost them no money to insure.

How much does insurance go down after 1 year no claims?

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\%.