June 22, 2024

Demonstrating Your No Claims Discount

If you opt to switch insurance provider, you’ll want to secure the best offer, which involves proving your no claims discount (NCD) or no claims bonus (NCB). But how exactly do no claims discounts function, how can you demonstrate your no claims bonus to a new insurer, and how much money can you potentially save? Here, we address all your queries regarding NCB.

Understanding the Operation of a No Claims Bonus

A no claims bonus serves as a reward in the form of a discount on your insurance premium, granted to policyholders who refrain from making claims. This is a beneficial method for prudent drivers to lower their car insurance expenses.

Reasons Behind Insurers Offering No Claims Discounts

Before providing a quote, insurers assess your risk profile based on various factors such as age, driving experience, and vehicle type. Accumulating more years of no claims bonus reduces the risk posed to the insurance company.

Distinguishing Between No Claims Bonus and No Claims Discount

No claims bonus refers to the reward scheme and the years accumulated, while the discount denotes the actual reduction applied to your premium. Though there’s a technical difference, these terms are commonly used interchangeably.

Transferring Your No Claims Discount to a New Insurer

Your bonus can be transferred to a new insurer, but keep in mind that the discount offered may vary among companies, and you’ll need to provide evidence of your claim-free years. Certain insurance policies that don’t allow NCD accrual might offer an equivalent discount.

Savings Potential

The discount amount offered depends on your insurer and the number of claim-free years amassed. According to The Association of British Insurers (ABI), an NCD can result in up to a 30% reduction after one year, and 60% after five consecutive claim-free years.

Maximum No Claims Discount

Most insurers consider only five years of no claims when calculating your discount. Beyond this point, the discount remains relatively consistent each year.

Duration of No Claims History

An accrued no claims bonus is typically reset after two years of inactivity, though some schemes may accept your NCD after three years or more. At Adrian Flux, we offer expired NCB insurance, accepting out-of-date no claims bonus entitlement.

In the event of an at-fault accident, your NCD will be decreased by two years. To protect your no claims bonus, consider opting for no claims discount protection.

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Understanding No Claims Discount Protection

No claims discount protection, available as an optional add-on to your policy for an extra fee, enables you to retain your bonus even after a fault claim. This protection doesn’t prevent a potential increase in your premium but safeguards your NCD.

If you’ve built up multiple years of no claims, NCD protection is advisable to avoid starting from scratch after an at-fault claim.

Earning a No Claims Bonus as a Named Driver

As a named driver on another policy, you might be able to retain a no claims bonus, subject to the insurer’s terms. If not accruing an NCD, inquire with us directly for possible rewards based on your driving experience.

Proving Your No Claims Discount

Ensure you have access to specific documents from your prior insurer to validate your no claims bonus.

Accepted Proof of No Claims

Accepted proofs include the renewal invite or cancellation letter from your previous insurer, or a confirmation letter from them stating your NCB. These documents should be dated within two years of your new policy’s commencement.

Many insurers provide options to upload these documents online, or you can email or post them.

Verification of No Claims Discount by Your New Insurer

Your new insurer might require direct confirmation of your NCD from your previous insurer. If in doubt, seek guidance from your current insurer.

Impact of Non-Fault Claims on No Claims Discount

No claims bonus remains unaffected by non-fault claims where another party is at fault. However, notify your insurer about the incident.

Potential Loss of No Claims Discount

Your no claims discount is forfeited in the event of a claim on your policy.

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Other Ways to Reduce Insurance Costs

Various methods exist to cut down your car insurance expenses. Explore our blog for over 20 simple tips to lower your premium and save money.

Finding the Best No Claims Discount

With a specialist like Adrian Flux, you can delve deeper into this process and tailor policy features to your requirements. Contact us for a quote that matches your needs and consider our expired NCB insurance if your entitlement has lapsed.



Save money on your car insurance by leveraging your no claims bonus effectively. Understand how no claims discounts work, transfer your bonus to a new insurer, and consider protection to safeguard your NCD. Explore other cost-saving measures and consult a specialist for tailored solutions. Secure the best deal on your insurance with the right knowledge and proactive measures.

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