What is a No Claims Bonus (NCB) and how can it save you money?
An NCB is a form of discount that reduces your car insurance premium at renewal. The discount rewarded is based on the number of years since a claim was made either by or against the policyholder. Before your renewal date, your current insurer posts you out a document declaring how much NCB you have earned up to the date of renewal. If you choose to switch insurance company (say to us!), you will have to submit this original document in order to avail of the NCB discount. You can also change your car and still retain the discount on your policy.
For every year you remain claims free, you receive a 10% discount on the price of car insurance. The most no claims discount insurers generally allow to policyholders is five years (50%). So even if you have 15 or 20 years NCB, you will still just get a 50% discount. However, some of our insurance companies award discounts of up to 65% if you’ve gone more than 5 years without having to make a claim.
Although only policy holders can earn an NCB, it is possible for those who have earned Named Driving Experience (NDE) as a named driver on another policy to get discounts on a policy in their own name. To do this, you will need to get a letter from the insurance company with whom you were insured as a named driver. The document should state that you were a named driver and that you did not make a claim. However, not all insurers allow NDE to be converted into NCB for the purposes of awarding discounts.