A no-claim bonus (NCB) is a reward insurance companies offer to policyholders for not making any claims during a specific period. Policyholders receive a discount on the premium amount for demonstrating responsible and safe driving behavior.

What is the impact of a no-claim bonus on car insurance renewal?

The NCB can have a positive impact on your car insurance renewal in the following ways:

  • Premium discount – you can get a premium discount on premium for each claim-free year. The discount percentage typically increases with every consecutive year of no claims. At the time of renewal, the NCB is applied to your premium, reducing the amount you need to pay.
  • Accumulated bonus – The NCB accumulates over time, rewarding policyholders for consistently maintaining a claim-free record. The longer you go without making a claim, the higher the NCB percentage you can earn.
  • Transferability – If you switch insurers during renewal, you can transfer your NCB from your current policy to the new one. It allows you to retain the discount earned and enjoy the benefits with the new insurer.
  • Protected NCB – Some insurance companies offer an add-on feature called “NCB protection” or “NCB retention.” This feature safeguards your NCB even if you make a claim, ensuring you can continue enjoying the discount in the following years.

It’s important to note that the NCB is typically associated with the policyholder rather than the vehicle. If you sell your car and buy a new one, you can still retain your earned NCB by transferring it to the new vehicle’s insurance policy.


The NCB is a valuable benefit that encourages safe driving and rewards policyholders for their responsible behavior. It’s crucial to inquire with your insurer about the specific NCB rules, eligibility criteria, and transfer options during renewal.

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