If you're selling your car, taking a break from driving, or just don't need a vehicle right now, you might be worried about losing your no claims bonus. The good news is you can keep it - but only for a limited time. Here's what you need to know.
A no claims bonus (also called a no claims discount or NCD) is a reward for claim-free driving. For every year you don't make a claim on your car insurance, you earn a discount on your next policy.
According to the Association of British Insurers (ABI), drivers with just one claim-free year can typically save around 30% on their premium. After five years without a claim, this can rise to 60% or more. That could mean saving hundreds of pounds every year on your car insurance.
| Claim-Free Years | Typical Discount (ABI) |
|---|---|
| 1 year | Around 30% |
| 2 years | Around 40% |
| 3 years | Around 45% |
| 4 years | Around 50% |
| 5+ years | Up to 60% or more |
Most insurers cap the maximum no claims discount at somewhere between 5 and 9 years. After you reach their limit, you keep that level of discount for as long as you stay claim-free.
Most UK insurers will accept a no claims bonus that is up to two years old. Some may stretch this to three years, but this is less common. If you go longer than two years without a car insurance policy, you will likely need to start building your no claims bonus again from scratch.
If you're planning a break from driving, make a note of when your policy ends. Most insurers will only honour your no claims discount for up to two years after that date. After this, you could lose a discount worth hundreds of pounds a year.
If you think you will be without a car for more than two years, you might want to look at short-term or temporary insurance options. These can help keep your bonus active even if you only drive occasionally. The key thing is to make sure you don't let your no claims bonus lapse without realising it.
If you're not sure how many years of no claims bonus you have, there are a few easy ways to check.
The quickest option is to look at your current car insurance policy documents or your most recent renewal letter. Both should show the number of no claims years on your record. If you can't find these, you can call your insurer and ask them directly.
UK insurers can also verify your no claims discount through the Motor Insurers' Bureau (MIB) No Claims Discount Database. This is a central system that allows insurers to check your NCD record without needing paperwork from you. However, not all insurers submit data to this database, so it's still a good idea to keep your own proof.
Save a copy of your renewal letter or cancellation letter every year. If you switch insurers or take a break from driving, this proof of your no claims bonus could save you hundreds. Your new insurer will usually give you 7 to 28 days to provide proof when you start a new policy.
If you've lost all your documents and your old insurer no longer exists, you can also check your bank statements for previous insurance payments. This can help you identify which company insured you so you can request proof of your no claims discount.
Before you cancel your policy, ask your insurer for proof of your no claims bonus. This is usually a letter or email showing how many years you have built up. Keep this safe - you will need it when you take out a new policy.
You should also consider whether no claims bonus protection is worth the cost. This is an add-on you can buy with your car insurance that lets you make a limited number of claims (usually one or two over three to five years) without losing your discount. According to the ABI, protected discount policyholders are usually allowed to make two claims over a three to five-year period without it affecting their NCD.
Being a named driver on someone else's insurance won't usually help you build or keep a no claims bonus. The NCD belongs to the main policyholder, not the named driver.
This is worth knowing if you're a younger driver building up experience on a parent's policy. Your claim-free years as a named driver won't count towards your own no claims discount when you take out your own policy. A small number of insurers are starting to offer named driver no claims bonuses, but this is still uncommon.
The no claims bonus belongs to the main policyholder. As a named driver, you won't build your own NCD with most insurers. If you're getting your own policy for the first time, comparing car insurance quotes is the best way to find a competitive price without a no claims history.
When you're ready to get back on the road, make sure your no claims bonus is working for you. Compare quotes from 130+ UK insurers via Brumble and see how much you could save.
Compare Quotes NowYes. Your no claims bonus belongs to you, not your insurer. When you switch providers, you can take your NCD with you. You'll need to provide proof, which is usually found on your renewal letter or cancellation documents. Your new insurer will typically give you 7 to 28 days to supply this.
If the other driver's insurer accepts full liability and pays all costs, your NCD should not be affected. However, if your insurer cannot recover costs from the other party, it could still count as a fault claim and reduce your bonus.
No. A no claims bonus can only be applied to one policy at a time. If you own a second car, you'll need to build a separate no claims discount on that vehicle's policy.
If you declare your car off the road (SORN) and cancel your insurance, your no claims bonus will remain valid for up to two years. You won't earn any additional NCD during this time, but you can use your existing bonus when you take out a new policy.
In most cases, windscreen repairs or replacements are not treated as claims that affect your no claims discount, provided you have comprehensive cover. Check your policy documents to confirm.
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