Archive · 28 Jul 2025
How No Claim Bonus Saves You Money on Car Insurance
Imagine your car insurance company gives you a reward for being a careful driver.
This reward is called No Claim Bonus (NCB).
If you don't have any accidents and don't make a claim in a year, you get a discount on your insurance next year.
The longer you drive safely without making a claim, the bigger your discount gets!
After several years, you could save a lot of money.
However, if you make a claim, you might lose your NCB, unless you have extra protection.
It's like a gold star for safe driving, helping you save money!
No Claim Bonus (NCB) is a discount on car insurance premiums for claim-free years.
The NCB discount increases annually, reaching up to 50% after five years.
NCB applies to the own-damage portion of the policy and can be transferred.
Making a claim usually resets the NCB, unless NCB protection is added.
It's wise to avoid small claims if the repair cost is less than the potential NCB loss.
- Who
- Safe drivers who do not file claims.
- What
- No Claim Bonus (NCB) is a discount on car insurance for not filing claims.
- When
- The discount applies during the policy period, typically a year.
- Where
- The benefit applies to car insurance policies.
- Why
- To reward safe driving and lower insurance costs.
Claiming vs. Not Claiming
Optimal Utilization of NCB
When to file a claim
Claiming vs. Not Claiming
Filing a claim for any damage, big or small.
Optimal Utilization of NCB
Avoiding claims for minor damages.
- What is NCB?
- Discount on car insurance for claim-free periods.
- Applies to?
- Own-damage portion of car insurance.
- NCB after 1 year
- 20% discount.
- Maximum NCB
- 50% after five years of claim-free driving.
- Transferable?
- Yes, to a new car and/or insurer.
- Resets when?
- When a claim is made, unless NCB protection is in place.