A No Claims Bonus
A No Claim Bonus or NCB as it is otherwise known is a discount on the cost of your insurance premium which is a type of a reward for being claims free for a certain period of time. This No Claims Bonus is only availae to the main policy holder and not available to named drivers on the policy.
What does it do?
The No Claims Bonus is based on the number of years since you last made a claim. Each year that the policy holder accumilates adds 10% to your discount, for example if you have four years no claims bonus, then your are usually entitled to a discount of 40% off your insurance premium. This discount scale is not used in everuy insurer, i.e Axa’s NCB scale goes up to 75% (Actually 5 years or more claims free driving)
Is there a limit?
Unfortunately insurers normally place a maximum of 50% discount with their policies when using a No Claims Bonus, even if you have earned far more than a five year bonus. However there are certain insurers that offer more depending on the company and the discount scale used.
If I make a claim do I lose my Discount?
If a claim is made, you can lose all of the discount that you have earned over the years. However you can protect your No Claims Bonus by either taking out Step-Back or Full No Claims Bonus Protection, both of which will stop you from losing all of your NCB should you be unfortunate enough to have to make a claim.
How Can I Check If I Have A No Claims Discount
Before your renewal date, your current insurer will send you out a document declaring how much “No Claims Bonus” or ‘NCB’ that applies to your policy. You will need to pass on this letter as proof of your No Claims Bonus if you wish to switch providers.
Can Named Drivers Earn A NCB?
Only policy holders can aquire a No Claims Bonus, though it is is possible for named drivers to achieve a discount for their time on a policy. This is known as Named Driving Experience (NDE), which allows a named driver on someone else’s policy to get discounts when they take out a policy in their own name.