Almost all car insurance companies and brokers ask the question regarding how many years No Claim Bonus or (NCB) you hold. Essentially this is calculated on the number of years a driver has not made a claim on their car insurance. Therefore, if you have not made a claim in the last 3 years, your No Claims Bonus entitlement should be 3 years as far as any insurer is concerned. It is normal for insurers to confirm this on the paperwork sent to you following the issuing of a car insurance policy.

Quite often, companies will advertise the fact that up to 75% discount is available if you’re no claims bonus is five years or more. Whilst this sounds a very good discount if you buy their car insurance policy, the truth is that the no claims discount applied may form part of the overall calculation of the premium and not necessarily taken off at the end of the calculated premium. It is true that every insurer uses different underwriting methods to assess risk.

What happens if I don’t have any No Claims Bonus?

This can be a problem for young drivers or company car workers who can’t prove any NCB. Depending on the insurer or broker, introductory discounts are usually given and these can range from 20% to 40%. Recognising the problem, some insurers have initiated accelerated insurance policies allowing drivers to earn 1 years’ no claim bonus in 10 months. Likewise, other insurance companies are prepared to give company car drivers no claim bonuses provided their company insurance provider can provide the necessary information confirming no claims were made during the period of insurance.

Can I protect my No Claim Bonus?

The answer is normally yes, although again this depends on the provider. Most insurers will charge an additional premium which means that if you have 1 accident in 3 years for example, your no claim bonus is probably unaffected, however, if you have 2 accidents in 3 years, you’re no claim bonus maybe affected. Each car insurance company has a different interpretation of protecting the bonus, therefore, always check with your provider regards there terms and conditions.