A no claims bonus (NCB) is a percentage discount your insurer takes off your car insurance premium to reward you for each year you go without making a claim. For example, with a 40% no claims bonus you would pay £600 for a policy that would otherwise cost £1,000.
Car insurance is often the most expensive running cost of a car, especially for new and young drivers, who face the highest premiums. That is why an NCB helps them most. A young driver can easily pay well over £1,000, and often £1,500 or more, for their first year of car insurance.
How does NCB work?
Each claim-free year earns you a bigger discount, usually for up to 9 years. One year of NCB can mean around 7% to 30% off in the first year, rising to 40% to 75% at 9 years. The exact figures vary between insurers.
Do named drivers build up an NCB discount?
Many young drivers choose not to have a car for financial reasons and become a named driver on a parent’s car insurance. Unfortunately, named drivers don’t usually earn an NCB, so it is hard for them to build one.
NCB on a provisional licence
You can earn an NCB while driving on a provisional licence, though this varies between insurers. If you plan to buy your own car, you may need to insure it in your own name to earn the discount. The upfront cost may be higher, but a discount of up to 30% after one year of driving could save you more in the end.
How LearnerBrake helps
Fitting a LearnerBrake in your car can help reduce the chance of an accident.