No Claims Bonus: How It Works and How to Protect It
Updated 16 October 2026 · 5 min read
Your no claims bonus (NCD) can slash your premium. Learn how it builds, when it's lost and whether to protect it.
Key takeaways
- Each claim-free year earns a bigger discount.
- A fault claim typically reduces your bonus by a few years.
- Protection keeps the discount — but not necessarily the price.
How it builds
A no claims bonus (or discount) is earned for each year you hold your own policy without making a claim. Discounts grow over time and are one of the biggest factors in your price.
When you lose it
A claim where your insurer can't recover costs from someone else usually reduces your bonus. Claims that aren't your fault may not affect it, depending on the insurer.
Should you protect it?
Protected NCB lets you make a set number of claims without losing your discount. It costs extra and your base premium can still rise after a claim, so weigh it up.
Proof of no claims
When switching, your new insurer may ask for proof — usually your renewal notice or a letter from your previous insurer. Bonuses typically expire if unused for two years.
This guide is general information, not financial advice.