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No-Claim Bonus on Car Insurance

The purpose of an insurance policy is to provide cover against unexpected incidents and accidents which may take place. The purpose of a car insurance policy is no different. Motor insurance provides financial coverage in case your vehicle has been damaged following an accident or has caused damage to a third party individual or property. However, not everyone comes across incidents following which they have a to make a claim on their motor insurance policy.

To the insurer, this indicates that not only is the insured individual a safe driver but they also take good care of their vehicle. If the insured goes through a policy term without making acclaim on their policy, they are entitled to a no-claim bonus which can in turn, help lower the policy premiums in the coming years.


A No-claim bonus is given to the policyholder and not the vehicle. This means that in case the policyholder changes their vehicle or even decides to switch their policy provider, they are still entitled to the benefit. All you need to provide is a No-claim Bonus certificate given by your former insurance provider.

No-Claim Bonus

No Claim Bonus,, also known as NCB, is the bonus which is provided to car insurance policy holders for each claim free year. This means, every year during which the policyholder has not made any claim on their car insurance policy, the insurance provider will provide them with a discount on their car insurance premium. This discount percentage increases with each claim free year, beginning from 20% and going up to 50%, which can help you save considerably on your insurance premiums.


What To Remember

In order to be eligible for a No-claim bonus, you need to remember to do the following.

  • Ensure that you pay all your policy premiums on time. Some providers allow a period of up to 90 days from the date of expiry, but don’t rely on that grace period to deter your payment.
  • If you do not renew your policy in time, you may stand to lose the benefits which it offers or benefits which you earned during the course of your policy. If you cancel your policy, you could also stand to lose discounts.
  • Any bonus or discount provided under the policy will only be on the own-damage component of the policy and not in the third party component.
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