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What Is Car Insurance No Claims Bonus And How Does It Work?

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Taylor Edgar Profile
Taylor Edgar answered
No claims bonus is a reward for one year's claim-free motoring. Insurance companies cut the cost of your premium to reflect each year's track record of safe driving. Having a claim-free driving record is therefore worth its weight in gold. Paying extra to protect No Claims Bonus makes sense as maximum No Claims Bonus can net a reduction of up to 60 per cent.

The maximum number of years no claims bonus you can earn varies from company to company. Glass replacement claims do not normally affect your no claims bonus.

But no claims bonus should not been seen as something that ties you to a particular company. Each time your policy comes up for renewal, your insurer will send out a reminder and contained within the accompanying bumf is a certificate or statement of no claims bonus. Retain these as you will be asked to provide proof of no claims bonus if you decide to switch insurance company.
Anonymous Profile
Anonymous answered
You can attain proof of NCB from just providing the company you were last insured by. And if you have a break in policies ie go travelling for a year after getting say 4 years NCB. You return home and find out your 4 years NCB is not there anymore due to a break and so you have lost them and as a result have 0 NCB
 
You can also have up 60% discount with 0 NCB. Ie my car is used to drive 1000 miles a year, is alarmed parked in a locked garage with a CCTV camera, and I am a member of a motoring club in low crime area and I have had no points on my license or claims over the ten years I have had it.
 
In fact you could be saying your friends address, you could have convictions, you may drive 300K a year with a car that has no alarm is parked on the road and you've been driving 3 weeks. Until you crash if you do, no one will know!! And the police just see the car as insured so why would they check the particulars. I mean, if your cars worth a couple hundred quid, who cares?? Ha ha.
Anonymous Profile
Anonymous answered
If you are a teen driver who is buying his or her first vehicle, or if you’ve never owned a vehicle before and are just now buying one, you’ll
find that the entire process is a bit more complicated than you might
think. Plus, aside from the complications of buying a car, there’s another complex thing you have to purchase: Car
insurance. You must have insurance to drive your vehicle, and the many different terms and phrases your insurance agent
throws around can be very confusing.  A good insurance agent will take you step by step through their insurance
package and explain what everything is.  Even if the agent does this, you’re still getting a lot of information at once, and
it can be hard to remember everything.  One of the things you will hear about is what is called a no-claims bonus, or a no-claims discount.  

However, your insurance agent may not spend much time talking about a no-claims bonus. This is because the no-claims bonus doesn’t go into affect the first year you have your
insurance policy.  Instead, it goes into effect the second year.

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