Last updated February 15, 2022
Whether you’re new to driving or have been a motorist for a number of years, you’ll know that car insurance is one of the largest expenses you encounter when taking to the roads.
When calculating your premiums, insurance companies consider several different factors, from the age, condition and value of the vehicle you’re insuring to the car’s registered address. Another factor insurance companies consider is the customer’s ‘no claims discount’, which can help motorists make substantial savings on insurance costs.
This guide explains the no claims discount (often referred to as the ‘no claims bonus’) in detail, focusing on proving your no claims bonus for future insurers.
A no claims discount is an insurance discount based on the number of years you've been driving without claiming on an insurance policy. Suppose a prospective insurer sees that you’ve driven for several years without making a claim – they’re statistically less likely to lose money and may offer you lower insurance rates.
For every year you drive without claiming on your car insurance policy, your insurer may discount the price of new policies. By driving sensibly with due care and attention, you can accumulate no claims discounts and make substantial savings each year.
Simply put, the more years you drive without making a claim, the greater discount you will see in insurance premiums. However, bear in mind that discount rates vary between insurers, so it’s worth shopping around if you have several years with no claims and are looking to switch insurers.
Getting proof of your no claims bonus can be tricky because the process often varies from insurer to insurer. However, there are generally three ways to obtain proof of your no claims bonus and claim a discount on your car insurance: check your renewal letter, check your cancellation documents if you’re switching insurer, or contact your insurer directly.
We'll explore these methods in more detail below:
Many car insurance providers will issue a renewal letter when your policy is approaching its renewal date, detailing the cost for another term and an updated no claims discount figure. You can use this document as proof of no claims to your next insurer.
Certain insurers will send out a pack of final documents should the customer choose to cancel or not renew their policy; in some cases, this pack will include your proof of no claims discount. Be sure to check on this when you decide to cancel or not renew by calling the insurer or checking their online FAQ section.
If you cannot find your no claims bonus, contact your provider to request the required proof.
After you’ve collected your proof of no claims discount, it’s important to follow these strict guidelines when forwarding the details to your next insurer; failing to do so could leave you uninsured.
If you have any time off the road, without your insurance policy, then your no claims bonus won’t last forever. Your proof of NCB is often only valid for two years. Therefore, after the two years is up, you will have to start from the beginning when you decide to take up driving again.
However, if you are wondering how to keep your no claims bonus without a car, you can protect your discount by paying for NCB protection.