The idea behind the no claims discount (also known as a no claims bonus) is pretty straightforward: drive safely and don't make a claim on your policy for 12 months and your insurer could offer you a discount on your car insurance premiums.
Discover the answers to how long a no claims bonus lasts, whether insurers offer a named driver no claims bonus and how to safeguard your no claims discount.
EASY AS HACK
To maintain, increase and protect your no claims bonus, you need to:
- Be the policyholder
- Drive safely in your car
- Have a valid insurance policy
- Not claim on it for 12 months
- Make no claims for a continuous period
At a glance
If you go a whole year without making any claims, you could get a discount. Drivers who haven’t claimed in five years or more can see their premiums slashed by over half.
what is a no claims discount?
A no claims discount (NCD) or bonus (NCB) is a discount on motor premiums for customers who haven’t claimed on their policy for at least a year.
You can build up your no claims discount by driving safely in a car you own, having a valid insurance policy, and making no claims for a continuous period. You also have to be the main driver.
Most insurers offer a maximum no claims discount after nine years of being claim-free. While you can continue to build up more than nine years, the discount itself is often capped at that point, depending on the insurer’s policy.
how is your no claims period worked out?
Your no claims discount depends on how long you’ve had a car insurance policy in your name without making a claim (minor items, such as a damaged windscreen or replacement lock claims, will not affect it).
The discount only accumulates if you maintain continuous insurance cover. An insurer will reset your no claims discount if you no longer own a car or have had no insurance for several years. They will not recognise the prior no claims period.
If the gap is just one or two years, your insurer may allow you to carry over your previous no claims discount, but you won’t receive credit for the period you weren’t insured.
If you're found to be at fault in an accident, your no claims discount might be affected, even if you didn’t make a claim or your car wasn’t damaged. That’s because other drivers involved can still claim on their insurance, and since you were at fault, it could impact your discount.
If you need to make a claim and your insurer recovers the costs from another driver, your discount should stay the same.
Ageas offers an Uninsured Driver Promise if you have comprehensive car insurance with us It means we reinstate your no claims discount if an uninsured driver hits your car and the incident was not your fault.
does a no claims bonus expire?
Your no claims bonus might expire if you don’t have car insurance for 2 years or more. But as long as you keep a valid policy and don’t make any claims, it stays active.
How much does a no claims bonus save you?
A no claims bonus can generally save you from 10% to a maximum of 70% (if your insurer recognises a no claims period that’s longer than 5 years).
Typically, your eligible discount will increase for each claim-free year in which you drive carefully, up to 5 to 10 years, depending on the insurer. Then, you’ll receive no further discounts. The percentage discounted each year may vary with different insurers.
Here’s a rough guide to the discounts you can expect:
- 1-year – 10%
- 3 years – 20-30%
- 5+ years – 50% or more
what is the maximum no claims discount?
Most insurance providers cap the maximum no claims bonus at 9 or 10 years. At Ageas, our maximum no claims discount is 9 years.
can you transfer your no claims bonus to another insurer?
You should be able to transfer your no claims discount when you switch to another insurer. However, you must provide proof of your no claims bonus to your new insurance company, such as a cancellation document or a renewal letter.
In some cases, the insurer may contact your previous provider for the information it needs independently. It can also check the insurance sector’s Motor Insurance Bureau[1] (MIB) database to find your no claims information.
can you transfer your no claims bonus to another car?
Yes, if you buy another car, you should be able to transfer your no claims bonus to the new one, provided it hasn’t expired.
Remember, it’s your no claims discount, not the car’s, so you can only transfer the bonus to one car policy, not multiple vehicles.
The insurer will just need some details from you on the new car, including its type and registration number.
can you get a no claims bonus as a named driver?
Usually, it’s only the policyholder or main driver who receives a no claims discount. Named drivers will not build up a no claims bonus.
For example, a married couple’s car insurance includes the husband as the named driver, but his wife is the main driver and policyholder. In this case, it’s the wife who receives the no claims discount, not the husband.
what happens to your discount when you make a claim?
You won’t automatically lose your entire no claims bonus if you make a claim or one is made against you that succeeds. Instead of erasing your current NCD, the insurer is most likely to deduct a few years.
Imagine you have built up 5 years of no claims discount when the claim is made. In this scenario, your insurer might cut it to just 2-3 years. Ultimately, it hinges on your provider. Each insurer’s action will be unique.
how can you protect your no claims discount?
You may choose to safeguard your hard-earned no claims discount by paying an additional annual fee if you have accumulated several years of savings. It means the insurer will allow you to make a limited number of claims without losing your accumulated no claims discount. The exact number of claims you can make and the time period they are allowed varies by insurer, so it’s important to check your specific policy documents.
Before opting for extra cover, consider your existing discount level, your insurer’s policy on discount reductions after a claim and the cost of the protection.
With the Ageas no claims discount protection, you can make up to two claims within the last three-year period before any reduction of your no claims discount. After a second claim is made, your NCD will no longer be protected and any further claims will result in the loss off (or reduction to) your no claims bonus. To see what will happen to your no claims discount if you make a claim, including the difference protecting your no claims discount makes, see Section J in our Ageas car insurance policy booklet.
Learn more about the Ageas car insurance protected no claims discount.
how to check your no claims bonus?
You can check your policy documents for details on your no claims bonus. You may also log into your insurer’s online account to see your renewal and cancellation documents, which include your NCD.
For example, an Ageas policy confirms your no claims discount on the statement of fact, which we usually email to customers along with other policy documents. You can also see it in the documents section of your online account.
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Discover why Ageas car insurance is easy to manage and what we do to support you.
FAQs
can you use your no claims bonus on two cars?
You cannot use your no claims bonus on two cars – it only applies to one car at a time. Neither can you use your NCD on multiple vehicles.
can you build up a no claims bonus with a company car?
Some insurers will allow you to build up a no claims bonus with a company car, but you’ll need written proof.
does temporary car insurance contribute to your no claims bonus?
Usually, temporary car insurance does not contribute to your no claims bonus. They typically only apply for every complete year of insurance.
can you build up a no claims bonus while living abroad?
Some insurers may recognise no claims discounts from other countries (Ageas does not – we only accept UK no claims bonuses).
For insurers that do, you will need written proof of your no claims history.
can you keep your no claims bonus if your car is sorn?
You can retain your no claims bonus if your car is SORN, but it depends:
- If you declare your car SORN and cancel your insurance, you will not be able to build up your no claims bonus.
- Usually, your no claims discount will remain valid for up to 2 years if you insure another car within this time period.
do you lose your no claims bonus if an accident is not your fault?
You do not lose your no claims bonus if an accident was not your fault and the third-party insurer pays out.
A claim where an uninsured driver was at fault and Ageas receives the make, model, registration and preferably the details of the uninsured driver, will not impact your no claims bonus either.
However, if you make a claim after an accident or theft and your insurer pays out, you might lose some or all of your no claims bonus.
when does your no claims bonus start?
Your no claims bonus starts when you have had a single year without any claims.
how to get proof of your no claims discount
You can get proof of your no claims discount in the following:
- Insurance renewal documents
- Cancellation letter from your previous insurer
- Contact insurer (past or present)
Read our guide to what we accept as proof of no claims discount.
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