No claims bonus: how it gives you a discount - Admiral (2024)

FAQs

No claims bonus: how it gives you a discount - Admiral? ›

A no claims discount or no claims bonus (NCB) is a discount that can be applied to an insurance policy based on the number of consecutive years the policyholder has gone without making any claims. If there are still no claims on your policy, you keep getting a discount.

Protected No Claims Bonus

This allows you to make one or more claims before your bonus is reduced. However, it does not protect the overall price of your insurance policy. The price of your insurance policy may increase following an accident even if you were not at fault.

What's a no claim discount? A no claims discount, or no claim bonus, is a cost reduction applied to your car insurance premium when you haven't made any claims. Typically, you earn one year of no claim discount for each claim-free year of driving.

No-claims discount for a driver with 5 years no-claims averages around 18% if you stay with the same insurer but could be up to 62% if you shop around. It is possible to protect your no-claims discount but it comes at an additional cost, typically between 10-30% of your car insurance policy premium.

If your windscreen or windows have been smashed, damaged or chipped we can organise a repair or replacement. Please note: Windscreen claims won't affect your No Claims Bonus.

Your personal documents and proof of no claims bonus can be found in MyAccount. Need our literature in a different format? Find out about accessibility help for your insurance documents.

There's no easy answer to whether paying for the extra protection will be worth it. No-claims bonus protection is essentially getting insurance on top of your insurance, and you can't predict whether something might happen to make you need to claim on or not.

If you make one claim on your insurance and your insurance provider pays out, your no claims discount is typically reduced by two or three years. It could be further reduced if you make two or more claims. So, if you have eight years of NCD and make a claim, in theory you'll be left with five or six years.

A no-claim discount (NCD) is a discount on your Comprehensive Car Insurance premium that increases each year you don't make an at-fault claim (it's also sometimes called a no-claim bonus or no-claims entitlement). The more consecutive years you're insured and remain claim-free, the bigger your discount.

Does a non-fault claim affect my no-claims bonus? It might sound unfair, but you can lose your no-claims bonus for an incident even if it wasn't your fault (unless you've got a protected no-claims bonus). After all, it's a “no-claims bonus”, not a “no-blame bonus” – and a claim is a claim, regardless of who's at fault.

Will my insurance go up if I have protected no claims? ›

Even if you've protected your NCB, it isn't a guarantee that the premium won't go up later on. Your premium is decided by your claims history, and your NCB is taken off the final price.

How much discount will you get? All insurance companies have their own no claims discount scale, but a typical example might be: 30% discount after 1 year's claim-free insurance. 40% discount after 2 years.

You can check your NCD rate easily online through a website called MyCarInfo. This site lets you check details, such as your next NCD percentage, NCD effective date, and policy cover period, among others for free.

How long do no claims bonuses last? A no claims bonus or no claims discount is usually valid for two years after a policy ends, but it varies between insurers. For example, we accept up to three years. This means that if you don't have a car, you'll still retain your no claims bonus.

However, this can be different with some companies and it is best to contact them with any questions. Is 9 years the maximum no claims bonus? Yes, with most providers of car insurance, 9 years is the maximum number of years required to gain the highest level of no claims discount.

If a fault claim is recorded, it's likely to reduce your no-claims bonus if you haven't protected it. This is normally reduced by 2 years, but insurers should explain in their policy how any reduction in no-claims bonus would be applied.

The NCB Protector protects Your Earned No claim Bonus, in the event of an Own Damage claim made. for Partial Loss including claims for Windshield glass, Total Loss, and Theft of vehicle/ accessories. 3. The No Claim Bonus will not get impacted for the first 2 claims preferred during the course of this policy. per year.