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A no-claims bonus (NCB), also known as a no-claims discount, is a discount on your premium based on your claims history. And building this bonus is one of the best ways to secure a cheap car insurance quote.
You accrue your NCB each year you don’t make a claim on your car insurance policy. The more years of no-claims history you have, the bigger the discount on your car insurance policy will be.
Read on to learn more about NCBs, how to earn one and how to avoid losing it.
Your driving history is one of the first things an insurer will look at when you apply for car insurance. Your claims history is part of your driving history. It includes any claims you’ve made on previous car insurance policies, including those held with other insurers.
If you haven’t made any (or many) claims in the past, the insurer will assume this will continue in the future, making you a less risky customer. This means your premium will be cheaper.
Your NCB is measured in years. The more years of NCB you have, the cheaper your insurance will be.
It takes time to build an NCB. New drivers will start off without one, while older drivers might have had time to build up 10, 15 or 20 years’ NCB. This is one of the reasons why young drivers pay more for car insurance. The sooner you have a car insurance policy in your name – with you as the main driver – the sooner you can start building an NCB.