A Motorist’s Guide: No claim bonus explained
The term no claims bonus, or NCB, is a crucial aspect of reducing your car, van or bike insurance premiums. It is a term we often hear, but do you really understand its implications? Many people may disregard the term or confuse it and as a result, might not be getting the best deal for their insurance. It is true that its worth varies from company to company, but in general a no claims bonus of five years or more can entitle motorists to around 70% off their motor insurance – so it is definitely worth taking note of!
What is so great about NCB?
NCB is great because it is earned. If you have gone a few years without making a claim, usually up to five years, you can receive substantial discounts. And it really is substantial – a common myth is that it only sheds a few ££s from the bill but in reality it can shave hundreds of pounds off your insurance.
Other Common Myths
Make sure you know what is and isn’t true about NCBs. Here are a few you should make notes of:
- You can’t share NCB between vehicles; a driver will need two lots of NCB – one lot for each car.
- If a driver has an accident, some or all of the NCB will normally be lost. Even if the accident wasn’t your fault, you can lose some or all of your NCB if your insurer can’t make a full recovery from the other motorist.
- If a claim is made from an accident and no-one admits fault, depending on the circumstances, you can expect to lose some or all of your NCB. This is why insurers often tell drivers never to accept responsibility for an accident right away!
- However, some insurers may not take away all of the NCB discount if you have the maximum number of NCB years stacked up. Instead, some companies reduce the discount only slightly, say to two years. This depends on the company an you should check this out with them.
- In some instances, drivers/riders can pay their insurers to protect their NCB so they do not lose it if they have an accident. Your NCB is a very valuable asset, and many people will want to keep it intact. This useful article goes into more detail about this issue.
Calculating your Insurance
Many of us now shop online for insurance quotes. It has become quicker, easier, and allows us to compare quotes from various insurers in an instant. Take us at Devitt, for example, a quick online quote process allows you to see our cheapest motor insurance quote within just a few minutes rather than having to call different insurance company.
If you change insurance company, you need to look carefully at how you transfer your NCB across. Usually the insurer will need a letter from your previous insurer and they may only allow you to transfer a certain number of years – each company is different.