Understanding your No Claims Bonus can be confusing. Here at Stroll Insurance, we’ve put together a simple guide answering the most common queries we get asked by our customers.
What is a No Claims Bonus?
The first, and most important, question we get asked is “What is a No Claims Bonus?”. Without knowing the answer to this question, the other questions may be difficult to comprehend.
Also known as no claims discount or NCB, this is a discount offered to drivers for each year that they DO NOT make a claim on their car insurance policy policy. It’s seen as an incentive to encourage safer driving. Your no claims bonus is cumulative so the more years that pass where you don’t make a claim, the bigger the discount you receive on your premium.
How Do I Show Proof of No Claims Bonus?
If you’re thinking about switching insurance companies, you may have to show proof of no claims or claims history from your previous insurer to continue to avail of the discount. A no claims bonus certificate is usually provided each time you renew your insurance. This can be used to show proof of no claims. If you don’t have access to this letter, then you can contact your insurer via phone or email to request proof.
You can then take a picture of the document and upload it to your customer account through our website or app.
Without proof of no claims bonus, you’ll have to pay your insurance premium in full unless you can qualify for other discounts such as by adding a named driver to your policy.
How Long Does No Claims Bonus Last?
This can vary depending on the insurance provider, but your no claims bonus can still be valid for 2 years after a lapsed or cancelled insurance policy.
After this time, your NCB will expire, and you won’t be able to take advantage of a discount until your no claims build up again. It’s common for your no claims discount to expire if you’ve lived abroad for a period of time. If you plan to stay abroad for less than 2 years, however, your bonus is still valid.
For peace of mind, be sure to consult us if you plan on moving abroad or taking a break from renewing your motor insurance.
Should I Protect My No Claims Bonus?
It’s common to want to protect your no claims discount. You may have spent the past few years building up your points so it would be a shame to lose some or all of them if you’re involved in an accident. Claims relating to windscreen damage won’t have an effect on your bonus.
To help protect your NCB it’s worth opting into No Claims Bonus Protection. This is an optional extra on your insurance policy that ensures you won’t lose your discount if you make a claim.
It’s important to note, however, that if you make more than one claim in any given insurance year then your bonus may be affected. No claims bonus protection also doesn't protect the price of your overall insurance quote.
The price of your premium may still increase upon renewal if you’ve been involved in an accident or received penalty points on your licence during the year.
How Do I Keep My No Claims Bonus without a Car?
There are many reasons why you can be without a car for a period. Perhaps you moved abroad, sold your car, or stopped driving for some time due to health issues.
If you don’t plan on driving for a while, then you can keep your NCB for up to 2 years without a car. Most insurance providers will honour your years of no claims when renewing or taking out a new policy. However, after this time your discount will lapse and you’ll have to start over again when applying for your next insurance policy.
No claims only apply to the main driver so if you don’t plan on driving for a while and you share the vehicle, you can’t transfer or share the no claims bonus.
Named Drivers and No Claims Bonus
Although there’s no such thing as a no claims discount for named drivers, you may be entitled to a discount from named driver experience with no claims. The more years of experience you have as a named driver, the bigger the discount you’ll get.
You’ll have to show proof of this experience from your previous or current insurer.
If you have any further queries when it comes to no claims bonus or want to find out other ways to get cheaper car insurance, feel free to reach out to us at Stroll Insurance.
