Does your no-claims bonus really reduce your car insurance

Drivers with many years without a claim bonus could see their car insurance premiums drop significantly.

The no claim bonus is a badge of honor given to drivers who haven’t had an accident or claimed their insurance company for at least a year.

Here's How You Can Get Cheaper Auto Insurance With No Claims Bonus Just By Following This Simple Rule


Here’s How You Can Get Cheaper Auto Insurance With No Claims Bonus Just By Following This Simple RuleCredit: Getty

Experienced drivers can earn years, or even decades, without a claim bonus – and the better your driver, the less you pay for insurance.

We look at how and by how much can your no-claims bonus reduce your auto insurance?

What is the no claim bonus?

The no-claim bonus is the amount the insurance company would deduct from your insurance if you had not had an accident in the previous year.

For each year you don’t claim your auto insurance, you get a bigger discount on your premiums.

If you crash and claim, your non-claims record will likely be deleted and you’ll see your premiums go up the next time around.

There’s no specific formula for how much discount you’ll get if you don’t claim it, but getting the first year under your term can make a big difference, especially for those who don’t. young driver.

For example, under which?, your insurance company might reward you 30% in one year then 50% in five years.

How much can the insurance no-claims bonus be reduced?

It depends on a lot of things, including the type of engine cover you’re using and the number of years you have no complaints.

First of all, you need to consider the different premiums available.

This isn’t always easy to figure out, but it makes it easy to see how much you’ll save with a no-claim bonus.

According to figures from, a driver with five years of NCB will pay an average of £713 for car insurance compared to just £559 for a driver with nine years of no claims.

But the unclaimed discount isn’t the only consideration when choosing an engine policy, and you don’t always just pick the cheapest deal.

Shop around using a comparison site, such as GoCompare or, and be sure to compare all aspects of the policy, such as overshoots or whether breakdowns are included.

“In general, a no-claims bonus can help you lower the price of your car insurance,” says Alex Kindred, car insurance specialist at

“While the number of years of no-claims bonus you build may be unlimited or continue to increase each year, some insurers may limit the amount of discount you can receive after five years. , so you should double check what your current insurance company offers.

“If you think you can benefit from no claim bonus, there’s no harm in exploring other insurance companies and finding the best options that can save you some money. “

Can a claim affect my no claim bonus?

Yes – if you claim your auto then you will lose some of your no-claims bonus.

AA has a “step back” scale that will determine how much of a discount you will lose compared to previous years.

For example, if a driver doesn’t claim for five years, they can often get a discount of up to 60%.

Then, if the driver claims, some of the 60% bonus is forfeited and can be reduced to the equivalent of a three or four year discount.

That could mean you get a 40% discount, even though the previously built claim profile is no longer available.

Should I get insurance for my no-claims bonus?

Claims protection is an add-on that you can choose to purchase when purchasing car insurance.

It usually costs around £60 for the year and can save you some cash if you claim it.

Covers allow you to make certain “faulty” claims without affecting your no-claims discount.

Coverage levels will vary, so you’ll have to check what’s covered on your policy.

You’ll also need to find out if it’s worth buying no-claims bonus protection and whether the extra outlay is worth what you can save on premiums when you claim.

So, the bigger your no-claims bonus, the more you can lose when you claim your vehicle, and the greater the overall protection value.

Can I keep the claim discount if I switch insurance providers?

It’s correct. To do this, you need proof of your NCD and usually it should be in writing.

Your previous insurance company will usually send this notice after your policy ends.

Then your new insurance provider will most likely ask for proof of policy after a few days.

Make sure you have this in place as your policy may be canceled if you do not provide proof, or you may be charged an additional administration or insurance fee.

We’ve previously looked at how you can save £500 on your auto insurance with a few simple tips.

And one insurance expert says there are six ways you can cut your premiums.

Martin Lewis warns drivers to check your auto insurance now as thousands of policies are now void following company bankruptcy Does your no-claims bonus really reduce your car insurance

Fry Electronics Team

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