What is a No Claims Bonus?
A No Claims Bonus (NCB), is the number of years claim free driving a person has earned. This is not to be confused with No Claims Discount (NCD), which is a discount insurers’ offer on the premium with the percentage of discount offered being dependent on how many years No Claims Bonus an individual has earned.
*All information included on this page is general information and not specific to Collingwood Insurance
Why is a No Claims Bonus Important?
A No Claims Bonus can lead to significant savings on your insurance premiums. Protecting it may be a wise investment, particularly if you’ve built up a substantial discount.
How does a No Claims Bonus work?
Every year you drive without making a claim adds to your no claims bonus. If you switch insurers, your NCB usually transfers, but the discount’s value might vary between providers. Be sure to request proof of your NCB from your current insurer to provide to the new one.
What is No Claims Bonus Protection?
No Claims Bonus Protection is an optional add-on that allows you to retain some or all of your NCB after a claim. It’s often available after you’ve earned four or more years of NCB.
Even with protection, your overall premium might increase following a claim, but your NCB itself would remain intact. Be aware that this protection may come with an added cost and conditions may differ between providers.
How Long Does a No Claims Bonus Last?
Your NCB remains valid as long as you’re insured and don’t make a claim. However, if you go uninsured for more than two years, your NCB may expire, requiring you to start over.
What Happens if You Make a Claim?
Making a claim typically reduces your NCB. The extent of the reduction depends on the number of years you’ve accumulated, the nature of the claim, and your provider’s policies. For example:
- One claim may reduce your NCB by two years.
- Multiple claims might erase it entirely.
Some claims, like windscreen repairs or incidents involving uninsured drivers, may not affect your NCB. Check your policy for details.
FAQs
When your learner policy ends or is cancelled, if you have 10 months of uninterrupted claim free cover you will be sent a No Claims letter.* This can then be passed on to your new insurer who may offer discounts on your new policy.**
*Terms, conditions and underwriting criteria apply
**We do not have information for all insurers so we cannot guarantee that they will accept the accelerated no claims. It is always worth letting them know to see if you can get a discount though.
If you, have an accident while driving someone else’s car that is covered by Collingwood Learner Driver Insurance, it will not affect the owner’s No Claims Bonus.
This is an unfortunate situation. If we cannot trace the Third Party involved, we are unable to recover any monies paid out to repair your vehicle. This will result in losing your No Claims Bonus as the claim has been made against your policy.
No, you can only use No Claims Discount that has been earned in your named on a courier insurance policy in the UK within the last 12 months
No, we do not offer protected No Claims Discount.