Understanding Your No Claims Bonus & No Claims Discounts | Rooster
A no claims bonus (NCB) is a valuable feature of car insurance that rewards careful drivers with discounts on their premiums. Understanding how your no claims bonus and no claims discounts work can help you maximise savings on your car insurance policy.
What Is a No Claims Bonus?
A no claims bonus is a discount applied to your car insurance premium for each year you drive without making a claim. The longer you go without claiming, the higher your discount can be. Insurers use NCB to incentivise safer driving and reduce the cost of cover for responsible motorists.
How Does No Claims Discount Work?
Most insurers offer a discount based on the number of claim-free years you have accumulated. Typically:
One year of no claims could save you around 30% on your premium.
Five or more years of no claims could result in a discount of up to 60% or more.
Some insurers cap NCB discounts after a certain number of years.
If you make a claim where you are at fault, you may lose some or all of your NCB unless you have no claims protection in place.
Can You Transfer Your No Claims Bonus?
Yes, your no claims bonus can usually be transferred between insurers when you switch policies. However, you will need proof of your NCB from your previous insurer. Some insurers may not accept NCB earned outside the UK.
What Happens If You Make a Claim?
If you make a claim and you are at fault, your NCB may be reduced. For example:
One claim could reduce your NCB by two years.
Multiple claims in a short period may reset your NCB to zero.
No claims protection can prevent you from losing your discount but does not prevent premiums from increasing.
How to Protect Your No Claims Bonus
To maintain and maximise your no claims bonus:
Drive safely and follow road laws to avoid accidents.
Consider adding no claims bonus protection to your policy.
Compare insurers to ensure you are getting the best deal on your NCB discount.
Save More on Car Insurance with Rooster
Rooster helps safe drivers save up to 40% on car insurance by basing premiums on actual driving behaviour. With the Rooster app, you can take control of your policy, access exclusive discounts, and maximise your savings. Download the app today to start benefiting from fair and transparent pricing.
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