Car Insurance No Claim Bonus
Why your no claims bonus matters your no claims discount ncd accrues for each year youre on the road without making a claim on your car insurance.
Car insurance no claim bonus. A no claim bonus is a reduction in your car insurance premium that you receive for each year you dont make a claim. Ncb belongs to the policyholdercar owner and not to the car. A no claims bonus ncb or no claims discount is a count of the number of years in which you havent made a claim on your car insurance policy. It will vary between insurers but a ncb will generally only last for two years.
No claim bonus ncb in car insurance no claim bonus ncb is a reward given by an insurer to a policyholder for making no claims during the policy term. So if for example you had a no claims bonus of 30 youd pay 700 where you would otherwise have paid 1000. A no claims bonus also known as a no claims discount is a percentage discount your insurer shaves off your insurance premium to reward you for not having made a car insurance claim in the previous year. A gap in your no claims bonus ncb can occur for many reasons such as changing from being the main driver to a named driver who dont usually receive a ncb taking a break from driving or living overseas.
No claim bonus can be accumulated as a discount on the premiums over years. It is actually a kind of reward that the car insurance providers provide to their customers when they do not file any claim in a policy year. The amount that its worth varies from insurer to insurer but a ncb of five years or more for example is likely to give you a significant discount on your premium. It varies in value between insurers but essentially rewards safe drivers by giving them lower premiums.
It works differently depending on the insurer but generally it will let you make up to two claims without losing your no claim bonus. A no claims bonus can mean a big discount on your car insurance find out how a no claims bonus works and how you can protect it in the event of a claim. A protected no claim bonus is an extra cost option you can add to your cover. The longer you drive without a claim the more discount you can potentially get although insurance providers often cap bonuses at around five years.
Some car insurance providers offer. Ncb actually stands for no claim bonus.