If you drive safely for a year or more, your insurer may reward you with a discount on your insurance premium - but do you get a no claims bonus on a company car?
A company vehicle doesn’t belong to you and you’re not the insurance policyholder, so getting a no claims bonus with a company car is not guaranteed.
We’ll explain how a no claims discount works and how to get one when you switch from a company car to a personal one.
EASY AS HACK
You don’t earn a traditional no claims bonus driving a company car, but here’s what to do when you change to using a private vehicle:
- Find an insurer who will offer you an introductory discount based on your claim-free period while driving a company car.
- Get proof from your employer of your claim-free record and send it to your insurer.
At a glance
When driving a company car, it’s your employer, not you, who is the insurance policyholder.
how does a no claims bonus work?
A no claims bonus (NCB), also known as a no claims discount (NCD), is a reduction of the cost of your insurance premium on your personal or private vehicle that insurers offer as a reward for having a claim-free period of at least a year.
Your claim-free period is the number of years you’ve been insured without needing to make a claim. These years can help keep your premium lower. If you make a claim, it can reduce your claim-free years, which could lead to a higher premium when your policy renews.
You must be the policyholder and you will get your first discount after 12 months of driving without making a claim. Each subsequent year you go without a claim will lead to a greater discount.
Many insurers offer a maximum no claims discount that’s capped after about nine years.[1] However, this can vary between providers.
Strictly speaking, you don’t earn a traditional NCB while driving a company car because it’s the company, not you, that is the insurance policyholder. However, some insurers may offer an introductory discount when you switch to a private car, provided you can show evidence of a claim-free period behind the wheel of a company car.
Learn more from our guide to no claims discount.
who is eligible for a no claims bonus?
In the case of a private car, you are eligible for a no claims bonus if you are the policyholder for a claim-free period of at least a year. Most insurers will not allow a named driver on a policy to build a no claims bonus.
If you’ve been using a company car, you don’t earn a no claims bonus, but some insurers will reward claim-free driving by offering an introductory discount when you switch to a private vehicle.
Learn more about the Ageas car insurance protected no claims discount.
how your no claims discount on a company car can be transferred to a private car
Even if you’ve driven a company car safely for years, getting that recognised in the form of a no claims bonus when you switch to your own car isn’t always easy.
Remember, you don’t receive a no claims bonus when using a company car and not all insurers will offer to transfer your safe-driving record to a private car insurance policy. So, your first move should be to find an insurer that will.
Most insurers will ask for proof that you’ve had a claim-free driving record. The easiest way to do this is to get a letter from your employer confirming this.
how to get proof of your no claims discount
An insurance provider may want proof of your claim-free driving record using a company car if you’re hoping for an insurance discount when you transfer to a personal or private vehicle.
As your employer is the policyholder on your company car, insurers could ask for a letter, on company-headed paper, from your employer or fleet manager confirming:
- Details about the vehicle (or vehicles) you drove, including the registration number (s).
- The period of time you had sole use of the company car.
- Details about whether or not the car was also available to you for social, domestic and pleasure use.
- The number of years you’ve driven claim-free.
- The dates you were insured under the company policy.
Private car drivers will also need proof of how many years of no claims bonus they have built up if changing insurers. This proof should be available from your current insurer in a cancellation or renewal notice.
Insurers can use the Motor Insurers’ Bureau (MIB)[2] no claims discount database to verify your no claims history.
can your no claims bonus expire?
As long as your personal or private car insurance policy is valid and you don’t make any claims, your no claims bonus stays active.
However, it can expire after about two years without a personal insurance policy. This scenario could happen if your organisation provides you with a company car and you decide you don’t need to insure a private one.
can making a claim on company car insurance impact your personal no claims discount?
Any no claims bonus you may have built up on your personal or private car shouldn’t be affected by a claim while using your company car, provided you have insurance for driving these vehicles under different policies.
Always tell the truth when asked about claims because insurers share data through the Claims and Underwriting Exchange database[3] to stop fraudulent claims, and any incident, regardless of fault or which vehicle was involved, is recorded.
A claim, even on a company car, suggests a higher possibility of future incidents to an insurer, which might result in a higher personal insurance premium. The chances of an impact on your personal no claims bonus will be higher if you were at fault in an accident while driving a company car.
Find out more about Ageas car insurance.
Sources
[1] - Financial Obudsman Service - Fault claims and no claims bonuses
