No claims bonus Flashcards
What is N.C.B.?
No Claims Bonus (NCB) is sometimes called No Claims Discount
a reduction in the premium charged for insurance when no claim has been made during an agreed preceding period.
A no-claims bonus (NCB), or no-claims discount, is a count of the number of years in which you haven’t made a claim on your car insurance policy.
How do I build my NCB?
For every year you’re insured without making a claim, you’ll earn another year’s NCB. Some companies offer accelerated policies where you can earn a bonus in 10 months rather than 12.
You can build up an unlimited number of NCB, but most insurers will only use a maximum of five years when working out a discount and some will only confirm a maximum of 9 years when formally issuing the proof of no claims out.
If I make a claim, depending on the fault nature of it, how is my NCB affected?
If you make a claim on your policy where your insurer pays out, you’ll generally lose some, or all, of your no-claims bonus.
But if you’re hit by another car and it’s agreed that you weren’t at fault, your insurer may be able to reclaim the payout from the other car’s insurer and your NCB may not be affected.
In cases where fault can’t be agreed on, insurers may split the cost of the claims and both drivers’ NCB could be affected. This includes if your car is stolen or damaged by bad weather.
If you pay for a new policy with a reduced NCB and are later found not at fault, you can usually get your NCB reinstated and a refund on the extra premium you paid.
How can clients prove N.C.B.?
When you decide to change your insurer, you’ll need proof of your NCB in order to transfer it over to the new one.
Your existing insurance provider may include your proof of no claims in the letter they send you before your car insurance is due for renewal – so you may want to hang on to this even if you decide to switch.
When you switch, you may also receive proof of your NCB in the cancelation letter you’ll get from your previous insurer.
Some insurers will only confirm over 9 years bonus with 9+ years. In most cases proof of this does not necessarily effect the premium if a policy is set up for more than 9 years, but codified proof of the actual number of years can be given at request and is advised to be held on to.
What is a protected no-claims bonus?
Protecting your NCB allows you to have a certain amount of “at fault” accidents without affecting the bonus. So if you have an accident, the NCB remains intact even if your insurer can’t claim their costs back. Each insurance company has different rules regarding how many claims are allowed.
This won’t necessarily stop your premiums going up after a claim, as insurers use your claims history to calculate premiums, with your NCB discount calculated at the end.
Any remaining NCB you have after the claim may lower your new premium, but there’s no guarantee that it’ll be lower than the previous year.
Can no claims bonus be used on two cxrs at the same time?
NO
Do named drivers build up no claims bonus on any of our policies?
NO
Do clients earn NCB on any of our classic car policies?
NO
