How to Get a No-Claim Bonus (NCB) Auto Insurance Discount in 2024
A No Claims Bonus for auto insurance can save you up to 60% on rates after five years. However, even not-at-fault car accidents can eliminate the no claims discount.
Free Car Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Jeff Root
Licensed Insurance Agent
Jeff is a well-known speaker and expert in insurance and financial planning. He has spoken at top insurance conferences around the U.S., including the InsuranceNewsNet Super Conference, the 8% Nation Insurance Wealth Conference, and the Digital Life Insurance Agent Mastermind. He has been featured and quoted in Nerdwallet, Bloomberg, Forbes, U.S. News & Money, USA Today, and other leading fina...
Licensed Insurance Agent
UPDATED: Aug 8, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Aug 8, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
Auto insurance companies frequently increase their rates. As administrative expenses and claim settlement costs escalate, insurers submit new, higher rates to the state. If you have car insurance without a no claim bonus and are a safe driver, you’re likely paying more than necessary. A no claim bonus on car insurance, which provides a bonus for claims-free years, can offer a significant bonus discount, helping to lower your premium.
Since auto insurance rates are not grandfathered in, existing clients will notice their personal rates increasing with their next auto insurance renewal, even if they have any claim-free years. This emphasizes the importance of having car insurance with no claims discount protection or considering options to buy a no claims bonus to maintain lower premiums.
While auto insurance prices do tend to go up, your premiums could actually start to drop if you do business with one of the many carriers that offers a No Claims Bonus for car insurance. This is one of the many auto insurance discounts and credits available.
Most people understand that a No Claims Bonus (NCB) is given to individuals who are claims-free but there’s a lot more to the policy provision than that.
Below is a guide to No Claims Bonus for car insurance and above is our free quote tool. Just enter your ZIP and start comparing rates today.
- Providers offer a myriad of auto insurance discounts to different drivers
- If you’re a safe driver, you may qualify for a Good Driver or Safe Driver Discount through your insurance carrier
- Another way to save money on your policy is to go an extended period without filing any type of insurance claim
- A No Claims Bonus for auto insurance offers you a discount off of your physical damage premium for not presenting any claims
- The Accident-Free Discount is different from a No Claim Car Insurance Bonus because it applies strictly to accidents and not claims
- It is in your interest to pay for your own damage if you want to keep your No Claim Bonus for auto insurance and the damage is minor
What is a No Claims Bonus?
A no-claim bonus is fundamentally a discount given to eligible policies when no claims are made. This discount can help you find the cheapest car insurance with no claims bonus. Additionally, young drivers looking for cheap car insurance can benefit from this bonus by ensuring they qualify. To maximize your savings, always check your no claims discount.
To be eligible for car insurance with a maximum no claims discount, or for company car insurance with no claims, you must not have filed a claim against your own insurance. Additionally, there must not be any third-party claims filed by others. This ensures that your no claims discount percentage remains unaffected.
New applicants for coverage will not meet the NCB eligibility criteria during their initial term. Understanding NCB in car insurance is essential, as the car insurance NCD rate will not apply immediately. This also means there is no claims discount for named drivers within the first term.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
How much does a No Claims Bonus save you?
If your policy includes first-party damage coverage, you’ll see your rates decrease over time as your bonus increases. Be sure to check no claims bonus online, especially if you have no claims for named drivers or a no claim bonus for a new car.
If you are claims-free for one year, you may see an initial 20 percent discount off of the damage component of your premiums.
The table below shows the insurers who provide this discount with known percentages.
Companies That Provide Claim-Free Discount and Percentage of Discount
| Company | Claim Free Discount % |
|---|---|
| Allstate | 35% |
| Esurance | 25% |
| Geico | 26% |
| MetLife | 20% |
| Nationwide | 10% |
| Safe Auto | 10% |
| Safeco | 20% |
| State Farm | 15% |
| The Hanover | 15% |
| Travelers | 23% |
| USAA | 12% |
Over the years, the discount will grow. At the end of five years, the NCB discount could be as high as 60 percent.
What coverage is the No Claims Bonus applied to?
Is no claims discount protection worth it? Although it would be ideal for the discount to apply to your entire policy premium, that’s not the case. When you qualify for the bonus, you’ll notice a reduction in the premiums for your physical damage coverage. This impacts your no claim discount rating positively.
Unfortunately, the savings doesn’t apply to third-party premiums. If you have a liability-only policy, you won’t see a premium decrease.
What is a third-party car insurance claim?
If you’re not familiar with terms that are used to classify claims it’s time that you learn the difference. Legal experts outline the difference between the two. You have control over whether or not you file a first-party claim but third-party claims are beyond your control.
They are filed by others involved in accidents with you. If it’s a legitimate claim, damages will be paid out under Bodily Injury and Property Damage Liability.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
When will the no-claim discount be applied?
When you first apply for coverage, you won’t receive the NCB provision from a company that offers it. In the context of comprehensive car insurance with a no claim bonus, it’s important to understand that no claim bonus expiry and losing no claims bonus after an accident can impact your eligibility.
You will have to go one-year with the insurer without having any claims before you’ll be eligible. Getting the bonus at your renewal is one of the few reasons why you should stay with your existing insurer. That’s how you can get the best car insurance after one year with no claims.
If you want to get cheap car insurance with 3 years no claims”}” data-sheets-userformat=”{“2″:513,”3”:{“1″:0},”12″:0}”>cheap car insurance with 3 years of no claims, you may be able to get a fairly good no claims discount.
Will you lose your discount if you have a non-fault accident?
Having a not at fault accident usually doesn’t affect your premiums. Your rates won’t go up if someone hits your car and you can’t be held responsible for damages sustained by others.
But do you lose your no claims bonus if it’s not your fault? Unfortunately, the fact that the accident is not your fault doesn’t matter. If a claim is filed against your policy no matter the size or the fault allocation, you will lose your No Claims Bonus. And if you have car insurance without NCD, you may see a big increase in your rates.
Do insurance companies check no claims bonus eligibility? It’s best to report an accident up-front, even if you aren’t at fault, because they will find out.
Is a No Claims Bonus the same thing as an Accident-Free Discount?
While No Claims Bonuses and Accident-Free Discounts are similar, they are not exactly the same thing.
While the accident-free discount is strict enough on its own, the No Claims Bonus has even stricter guidelines.
Not only do you have to be accident-free, you can’t file any type of other claims against the policy for the savings.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Can you still get a Good Driver Discount?
If you don’t qualify for the No Claims Bonus, it’s still possible to receive other discounts.
This video from Geico talks a little about the Good Driver discount.
While filing a claim can affect your rates when it’s classified as a chargeable, loss, you could still meet the definition of a ‘Good Driver’ or ‘Safer Driver’ in most states with one at-fault accident in the last three years.
Will you get a No Claims Bonus if you trade-in your car?
The NCB is issued by the insurance carrier to an insured and not to a specific vehicle. If you and drivers on your policy haven’t filed any claims, you’ll see the premium on the vehicle go down.
While insurance does follow the car, you can still take advantage of the savings if you get a new car. All you have to do is change the car on the policy and the discount will remain on the plan.
What happens to your No Claims Bonus if you have a single-car accident?
What do you do after an auto accident? If you’re involved in a single-car accident or your car was damaged while it was parked, you may want to rethink your decision to pick up the phone and file a claim.
The California Department of Insurance notes that you should immediately call 911 if there are injuries, call the police, and obtain all relevant information right after the accident.
It’s nice to have the coverage there if the damage is severe, but asking your insurer to pay for your physical damage after a minor loss could cost you more in the long run.
It’s best that you get repair estimates before you make any claims decisions.
Also, look over your deductible and then ask your agent to give you a quote of what your premiums would look like without the claims-free savings and will a possible surcharge for the claim that you file.
As you’ll see, paying out of pocket could be a better option in terms of long-term savings.
It’s always nice to be awarded for your good driving. Not only can you get a discount for being a good driver, you can also get a discount for handling claims on your own.
As you’re shopping around for low-cost auto insurance, be sure to ask if carriers have a No Claims Bonus feature or something similar to it.
Then, get instant online quotes to compare and choose the best option for the long term.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Frequently Asked Questions
Do I have a no claims bonus as a named driver?
You won’t be able to build up a no-claims discount if you’re a named driver. Only the primary driver of the vehicle can get this discount and build up the no-claims period.
If Your Car Insurance Expired, Your No Claims Bonus May Be Invalid?
Though it changes based upon which insurer you have, you may lose your discount if your auto insurance is expired for too long. Always check with your insurer if you know that you’ll be uninsured for a while.
Can you get a fleet insurance no claims bonus?
This depends upon the insurer, but most traditional insurers will not provide a no claims bonus for fleet vehicles.
Your Car Insurance Expired, Your No Claims Bonus May Be Invalid?
Though it changes based upon which insurer you have, you may lose your discount if your auto insurance is expired for too long. Always check with your insurer if you know that you’ll be uninsured for a while.
How can I qualify for a No-Claim Bonus (NCB)?
To qualify for a No-Claim Bonus (NCB), you need to fulfill the following criteria:
- You must have held an auto insurance policy in your name for a minimum specified period, usually one year.
- You must not have made any claims against your auto insurance policy during the policy year.
Does the No-Claim Bonus (NCB) apply to all types of auto insurance policies?
Yes, the No-Claim Bonus (NCB) is applicable to most types of auto insurance policies, including comprehensive, third-party, and own-damage policies. However, it’s essential to check with your insurance provider to confirm if NCB is applicable to your specific policy.
Can a named driver earn no claims bonus?
No, a named driver cannot earn a no claims bonus. The no claims bonus is typically earned by the primary policyholder of the car insurance. Only the main driver who holds the policy can accumulate and benefit from the no claims discount.
Can I buy no claims bonus?
In most cases, you cannot directly buy a no claims bonus. However, you can purchase a policy that allows you to protect your no claims bonus or transfer it from a previous insurer. Some insurers may offer a no claims bonus protection policy that allows you to retain your discount even if you make a claim.
Can I keep my no claims bonus if I don’t have a car?
If you don’t have a car and your insurance policy lapses, you may still retain your no claims bonus for a certain period, usually up to two years, depending on the insurer. After this period, the no claims bonus may expire if you do not take out a new policy.
Can I use my no claims bonus on more than one car?
Typically, a no claims bonus applies to one vehicle per policy. If you have multiple cars, you may need separate policies for each, or some insurers offer multi-car discounts. You cannot generally apply the same no claims bonus to multiple vehicles simultaneously.
Do car insurance companies check no claims bonus?
Yes, car insurance companies check no claims bonus when assessing your application for insurance. They verify your no claims history with your previous insurer to confirm the bonus you are entitled to and ensure its accuracy.
Does no claims bonus expire?
Yes, a no claims bonus can expire if you do not have a continuous insurance policy. Most insurers allow you to retain the bonus for a period of up to two years without insurance. Beyond this period, the bonus may be lost.
How can I get my no claims history?
You can obtain your no claims history by contacting your previous insurance provider. They can provide you with a statement or proof of your no claims record, which you can then use when applying for new insurance.
How long does a no claims bonus last?
A no claims bonus typically lasts up to two years after your insurance policy has ended. If you do not purchase a new policy within this period, the bonus may no longer be valid.
How much does a no claims discount save?
The no claims discount can significantly reduce your car insurance premium. The savings typically start at around 20% for one year of no claims and can increase up to 60% or more for five years of no claims.
How to check no claims bonus?
To check your no claims bonus, request a no claims bonus statement from your current or previous insurer. They will provide a document detailing the number of claim-free years you have accumulated.
How to claim no claim bonus?
To claim a no claim bonus, provide proof of your no claims history from your previous insurer when applying for a new policy. This documentation will help you receive the discount on your new insurance premium.
What is a no claim bonus?
A no claim bonus is a discount offered by insurers to policyholders who have not made any claims during their policy term. It rewards safe driving by reducing the insurance premium based on the number of claim-free years.
What is no claims discount?
A no claims discount is a reduction in your car insurance premium awarded for not making any claims during a specified period. It is often calculated based on the number of consecutive claim-free years you have.
What is the maximum no claims discount on car insurance?
The maximum no claims discount on car insurance can reach up to 60% for five or more years of claim-free driving. The exact percentage may vary depending on the insurer.
Which car insurance companies accept international no claim bonus?
Some car insurance companies accept international no claim bonuses from certain countries. It is best to check with individual insurers to see if they recognize and accept no claims bonuses from your previous country of residence.
Which insurance companies give no claims bonus to named drivers?
Insurance companies generally award no claims bonuses to the main policyholder, not named drivers. However, the primary driver’s no claims bonus can indirectly benefit named drivers in terms of lower premiums on the policy.
Who accepts expired no claims bonus?
Some insurers may accept an expired no claims bonus, but the discount may not be as high as if it were current. It is advisable to check with individual insurers to understand their policies regarding expired no claims bonuses.
What is the discount for 1 year of no claims?
With 1 year of no claims, you typically receive a discount of around 20% on your car insurance premium. This discount can vary depending on the insurer and the specifics of your policy.
How does having 5 years of no claims affect your car insurance?
Having 5 years of no claims usually results in a significant discount on your car insurance premium, often up to 60%. The exact discount can vary by insurer, but a longer no claims history generally means more substantial savings.
After how many years do you lose your no claims bonus?
The retention of your no claims bonus can vary by insurer, but generally, if you have a lapse in insurance coverage or do not renew your policy for a period of time, you might lose your no claims bonus after around 2 years of inactivity.
Which car insurance companies accept a commercial no claims bonus?
Some car insurance companies accept a commercial no claims bonus as part of their underwriting process. It’s best to check directly with insurers or brokers to see which ones offer this option, as it can depend on individual company policies.
What is the no claims discount with RACV?
RACV offers a no claims discount that can significantly reduce your premium, often starting around 20% for the first year of no claims and potentially increasing over time. The exact discount depends on the length of your no claims history and your specific policy.
What is a claim-free discount for home insurance?
A claim-free discount for home insurance is a reduction in your premium for not having made any claims during a specified period, often 1 year. This discount rewards policyholders who maintain a claims-free record.
What does NCB mean in auto insurance?
In auto insurance, NCB stands for No Claims Bonus. It is a discount offered to drivers who do not make any claims on their insurance policy during a specified period, reflecting their lower risk as a driver.
What is AMI FreeBmax?
AMI FreeBmax is an insurance product offered by AMI Insurance, designed to provide comprehensive coverage with a focus on flexibility and cost efficiency. It typically includes features such as no-claims bonuses, which reward policyholders for maintaining a claims-free record. If you’re looking into this option, it’s a good idea to review the specific terms and benefits of AMI FreeBmax with AMI Insurance directly to ensure it meets your needs.
How much discount can I get through the No-Claim Bonus (NCB)?
The discount offered through the No-Claim Bonus (NCB) varies from insurer to insurer. Generally, the NCB discount starts at 20% for one claim-free year and can increase up to a maximum of 50-60% for consecutive claim-free years.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Jeff Root
Licensed Insurance Agent
Jeff is a well-known speaker and expert in insurance and financial planning. He has spoken at top insurance conferences around the U.S., including the InsuranceNewsNet Super Conference, the 8% Nation Insurance Wealth Conference, and the Digital Life Insurance Agent Mastermind. He has been featured and quoted in Nerdwallet, Bloomberg, Forbes, U.S. News & Money, USA Today, and other leading fina...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.