Your No-Claim Bonus can cut your premium in half. Here's how it works, how it grows, and how not to lose it.
The No-Claim Bonus (NCB) is one of the most valuable — and most misunderstood — perks in insurance. Used well, it can slash your motor premium by up to half. Here's everything you need to know.
What is NCB?
NCB is a reward for not making a claim during your policy year. For every claim-free year, your discount grows — starting at 20% and rising to 50% after five consecutive claim-free years. It applies to the 'own damage' part of your car or bike premium.
How it grows
- 1 claim-free year: 20%
- 2 years: 25%
- 3 years: 35%
- 4 years: 45%
- 5+ years: 50%
How you can lose it
Make even one claim and your NCB usually resets to zero at the next renewal. It can also lapse if you don't renew your policy within 90 days of expiry — another reason never to let cover lapse.
How to protect it
- Skip small claims: if a repair costs less than your NCB saving, pay it yourself and keep the bonus.
- Add an 'NCB Protection' cover so one claim doesn't wipe out your discount.
- Renew on time — and carry your NCB over if you switch insurers or buy a new car.
Switching insurers? Your NCB belongs to you, not the insurer. Ask for an NCB certificate and carry the discount to your new policy.