What is a no claims bonus (NCB) and why is it so important?

A no claims bonus(NCB) is a percentage discount your insurer shaves off your insurance premium to reward you for not having made a car insurance claim in the previous years. For example, you had a no-claims bonus of 40%, you’d pay £600 where you would otherwise have paid £1,000. Car insurance, especially for new and young drivers is often the most expensive running cost of a car. NCB is particularly beneficial to young and new drivers who face the highest insurance premiums. A young driver can easily expect to pay anywhere from £1,000 to £1,500 or more for their firsts years car insurance.

How does NCB work?

With each year of no claims bonus you earn, you gain an additional discount usually up to 9 years. One year NCB can result in around a 7% to 30% discount for the first year growing to 40% to 75% when you reach 9 years.

Do named drivers build up a NCB discount?

Many young drivers, choose not to have a car for financial reasons and become a named driver on a parent’s car insurance. Unfortunately, this makes it difficult for new and young drivers to build no claims bonus because named drivers don’t usually earn NCB.

NCB on a Provisional Licence

It is possible to earn a NCB whilst driving on a provisional licence. This varies across providers, but no claims is especially important for young a new drivers. If you intend on purchasing your own vehicle, to earn no claims, you may need to insure the vehicle under your own name if on provisional licence to obtain a no claims discount. Although the initial costs may prove a little expensive, earning an up to 30% no claims discount within one year of driving could ultimately save you more.

How LEARNERBRAKE helps

Having the LEARNERBRAKE installed in your car you significantly minimize the chance of having an accident (therefore no claims).