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 industry research, 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.
A good no claims bonus can save you hundreds of pounds a year on your car insurance premium, making it one of the most valuable discounts available to drivers.
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.
Don't let your no claims bonus expire. Most insurers only accept NCB that's up to two years old – after that, you'll need to start from zero.
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.
Remember that the no claims bonus typically belongs to the main policyholder. As a named driver, you won't build your own NCD with most insurers.
When you're ready to get back behind the wheel, make sure you get the best deal on your car insurance. Use Brumble to find quotes from top UK insurers and see how much your no claims bonus could save you.
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