No Claims Bonus Explained: How It Works and Whether to Protect It
A no claims bonus (NCB) is a discount insurers give for each year you drive without making a claim. It typically builds year by year, and a long run of claim-free years can cut a large share off your premium.
Making a claim usually reduces your NCB, often by one or two years' worth, though the exact rules vary by insurer. A claim where you're not at fault and the insurer recovers its costs from the other side may not affect it, but check your policy wording.
No claims protection is an optional add-on that lets you make a limited number of claims without losing your discount. It adds to the premium, so it's worth it mainly if you have a large NCB and a realistic chance of claiming, such as parking on a busy street.
Your NCB belongs to you, not the insurer. You can usually take it to a new provider by sending proof, which is why comparing quotes at renewal doesn't cost you your discount.