If you're selling your car, taking a break from driving, or just don't need a car right now, you might be worried about losing your no claims bonus. The good news is that 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 safe driving. For every year you don't make a claim on your car insurance, you earn a discount on your next policy. According to research from Compare the Market, drivers with just one year of no claims typically save around 32% on their car insurance premium. The longer you go without claiming, the bigger your discount grows – often up to 60% or more after several years.
Most UK insurers will accept a no claims bonus that is up to two years old. Some insurers may stretch this to three years, but this is less common. For example, Aviva states they will accept NCD up to two years after the expiry of your last policy. If you go longer than two years without car insurance, you will likely need to start building your no claims bonus again from scratch.
Before you cancel your policy, ask your insurer for proof of your no claims bonus. This is usually a letter or email that shows how many years you have built up. Keep this document safe – you will need it when you take out a new policy. Your renewal notice or cancellation letter will often include this information too.
If you think you'll 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're only driving occasionally.
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. However, a few insurers are now starting to offer named driver no claims bonuses, so it's worth asking about this if you're added to a family member's policy.
When you're ready to get back behind the wheel, make sure you get the best deal on your car insurance. Use the free car insurance comparison tool to find quotes from top UK insurers and see how much your no claims bonus could save you.
• Your no claims bonus usually lasts for two years without a car insurance policy
• Always get proof of your NCD before cancelling your policy
• Named drivers don't usually earn their own no claims bonus
• A good no claims bonus can save you hundreds of pounds a year
____________
Sources
Compare the Market – No Claims Discount
Aviva – No Claim Discount Explained
Which? – 7 Things to Know About Your Car Insurance No-Claims Discount
MoneyHelper – Should I Protect My No-Claims Bonus?
GoCompare – No-Claims Discount Explained
Student car insurance is notoriously expensive, with the average UK student paying around £2,722 per year. This guide explains why premiums are so high for those in full-time education and what you can do to bring costs down legally.
Dash cams have become increasingly popular with UK drivers – over 9 million motorists now have one fitted in their vehicle. But the big question is: will having a dash cam actually save you money on your car insurance?
One of the most persistent car insurance myths suggests that red cars attract higher premiums because they're associated with aggressive driving, or that brightly coloured vehicles cost more to insure. But what does the evidence actually show? Let's examine the facts.
