What Is No-Claim Bonus?
A no-claim bonus (NCB), common in the UK, Australia, and much of the world, is a discount on your premium for each year you go without filing a claim. After five claim-free years the discount can reach around 60–70%. It is a reward for low-risk driving and is often transferable between insurers.
Why it matters
The NCB is why a clean record compounds into real savings abroad, and why a single at-fault claim can sting via lost discount, not just the repair cost.
Common confusion
NCB is a discount, not a cash payout. In the U.S. the closest equivalent is a "claims-free" or safe-driver discount, which works differently.
Frequently Asked Questions
Does a not-at-fault claim cost my NCB?
In many markets a proven not-at-fault claim does not, but rules vary by insurer and country — check the policy.
Can I keep my NCB if I switch insurers?
Yes, via an NCB certificate from your prior insurer proving your claim-free years.