No claims bonus protection is an optional add-on to your car insurance. It lets you make one or two claims (depending on your insurer) without losing the discount you've built up over the years.
Most insurers only offer this protection once you have at least four years of no claims built up. The protection typically costs between £20 and £60 per year, though this varies depending on your car and driving history.
Your no claims bonus can make a huge difference to what you pay. After five claim-free years, you could save up to 60% on your premium according to the Association of British Insurers. Some insurers offer even more – up to 75% off.
According to data from MoneySuperMarket, drivers with one year's no claims paid on average £1,076 a year for cover in November 2024, compared to just £675 for those with five years. That's a saving of £401 per year.
Without protection, making a claim will usually reduce your no claims bonus. If you have five years built up and make one claim, many insurers will drop you back to three years. Make a second claim and you could lose it completely.
This doesn't just affect your discount percentage – it could cost you hundreds of pounds extra at renewal time. For example, if losing your five-year bonus means going from a 60% discount to a 40% discount, you might pay £300 to £500 more per year.
Whether protection is worth it depends on your situation:
You have five or more years of no claims (the saving is substantial)
You drive in busy areas where accidents are more likely
You do high mileage
The protection cost is small compared to what you'd lose
You only have one or two years built up (the discount isn't huge yet)
You rarely drive or do very low mileage
You're a very experienced driver in a quiet area
The cost of protection seems high for your situation
Even with protection, your premium can still go up after a claim. Protection only keeps your discount percentage – it doesn't freeze your overall price. Your insurer may still see you as higher risk and increase your base premium.
Also, protection usually only covers a set number of claims in a certain period – often two claims in three years. Make more claims than this and you'll lose your bonus anyway.
Different insurers treat no claims bonuses differently. Some offer bigger discounts, while others charge less for protection. Use the comparison tool to check quotes from multiple insurers – you might find an insurer that offers great no claims discounts without needing expensive protection, or one where protection costs less.
The key is to do the maths based on your own situation. Work out what you're saving with your current bonus, compare it to the cost of protection, and decide if the peace of mind is worth it for you.
Sources
Association of British Insurers - No Claims Bonus information
https://www.abi.org.uk/
MoneySuperMarket - Calculate your No Claims Discount (November 2024)
https://www.moneysupermarket.com/car-insurance/no-claims-discount-tool/
Money to the Masses - What is no-claims discount and is it worth protecting? (July 2025)
https://moneytothemasses.com/quick-savings/insurance-2/car-insurance/what-is-no-claims-discount-and-is-it-worth-protecting
FreePrice Compare - No Claims Discount Protection UK (October 2025)
https://freepricecompare.com/car-insurance/guides/no-claims-discount-protection-uk/
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