How does my No Claims Bonus work?

No Claims Bonus (NCB) is sometimes known as No Claims Discount, but whatever it's called, it can save you a substantial amount of money.

If you, or a third-party (another person), don't make any claims on your insurance policy (so, if you don't make a request for a payment in accordance with your insurance terms and conditions) then you begin to build up a 'no claims bonus'.

This amounts to a reduction in your policy fee for every year of NCB you accrue; so you could pay less for your insurance policy in future.

Does it matter what type of insurance I have?

No. You can build up a No Claims Bonus whether you have Comprehensive, Third Party, Fire and Theft or Third Party insurance.

Could I lose my No Claims Bonus if an accident wasn't my fault?

In some cases, yes. If you are in an accident with an uninsured rider or driver, or if your bike is stolen and you have to make a claim on your insurance, there is a good chance you will lose your No Claims Bonus.

However, if you were in an accident with somebody with insurance, your insurer may be able to claim all the costs back from them, so you would not lose your bonus. You can however protect your NCB.

What does 'protecting' my No Claims Bonus mean?

Each insurer will usually offer you the opportunity to protect your No Claims Bonus which means if you are hit by an uninsured person, or if your bike is damaged by fire or stolen and you have to make a claim, you will not lose your bonus.

Protecting it will make your insurance premium more expensive, but it often works out much cheaper than losing your bonus completely.

Can I transfer my No Claims Bonus between vehicles?

Your No Claims Bonus is non-transferable between different types of vehicles.

So, for example, you couldn't transfer a car's No Claims Bonus onto a motorbike's policy. You can, however, transfer your NCB from the same vehicle if you were simply buying a new insurance policy -- you can transfer it from bike to bike.

Will an insurer check up on my No Claims Bonus?

Yes they will. Before they add the NCB (or discount) to your policy, your insurer will want to see proof that you really do have as much as you're claiming, so you would have to supply it by showing the evidence from your policy.

You can do this by either sending a photocopy of your insurance certificate or by asking your insurer to send proof if you are transferring to a new insurer.

If you exaggerate your NCB you may end up paying full price for the policy and, in the event of a claim, there's a chance your insurance will be invalid.

Does my No Claims Bonus have an expiry date?

While technically there is no expiry date, your insurer will normally only accept proof of your No Claims Bonus if your insurance expired a maximum of two years ago.

So, if you have a gap in riding of more than two years, it's worth noting that your insurer may not honour any old No Claims Bonus.

How does my No Claims Bonus translate into a discount on my insurance?

Technically, your NCB should result in you building a discount on your insurance policy year on year. So, for example:

1 year NCB = 30% reduction
2 years NCB = 40%
3 years NCB = 50%
4 years NCB = 60%
5 years NCB = 65%

However, it is worth noting that the discount will almost definitely alter depending on your insurer.

Often, 5-6 years will be the maximum amount of discount you can accrue, so even if you have more than 5-6 years, you won't receive any further discount.